SAINT MKT301 MODULE 5 DISCUSSIONS

Module 5 Discussion
You want HOW much for that bag?
Why can Prada sell a handbag for
$2,000 that costs the firm a little more to manufacture than the $200
bag sold at a department store? At the other end of the pricing
spectrum, why would a consumer goods company provide a coupon that makes
their new snack product all but free? We learned in the text that there
are a number of pricing strategies firms can use to achieve their
marketing objectives. Do they want to build market share, create a
perception of exclusivity, or simply get you to try those new cookies?

Consider the product you are using for
your marketing plan. How would you price it to achieve your objectives?
Describe the pricing strategy you would use to introduce your product
to the market, and why you selected that strategy over other options. Is
your choice a long-term or short-term strategy? What advantages or
disadvantages do you foresee? Suppose that sales are not meeting your
objectives, what change might you make in your pricing?

By the way, that $2000 Prada bag may
seem like lot of money for a simple handbag, but it is not even close to
top of the pyramid. For that, check out the Tanaka designed bag sold by
Hermes for a staggering $1.9 million. Why not order two?