Description
3 pages (not including cover page or Reference page; double spaced 12-point Times New Roman font)
the product is Mobile phone and the company name is Mobile Manufacturing, Inc. (MM)
Key Assignment Draft
Now that the product and promotional decisions have been made for the new product, Michelle is concerned about the pricing of the new product and the distribution channels that will be used to make the product available to customers. She has asked you to write a 2-3 page memo outlining two different pricing strategies that MM should consider. Her voice mail message goes on to say,
I want you to recommend which strategy you think should be used for the target market and why. The second part of the memo should outline a distribution plan that will make the product available to the target customers.
You are ready for Michelle's request and begin drafting the memo to her that same day.
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Explanation & Answer
Attached.
Memorandum
TO: Michelle
FROM:
CC: Mobile Manufacturing Incorporation
DATE:
SUBJECT: Mobile Phone’s Pricing Strategy and distribution plan recommendation
The right pricing and distribution channel form the basis of marketing for a new product
and an existing market as the two aspects increase a product's market share. Generally, pricing is
one of the vital marketing concepts because it requires a thorough understanding of both the market
and the product. The right pricing can be viewed from two perspectives; the supplier and buyer
are points of view. From the supplier’s perspective, the right price is a price the market is willing
to bear, allows the supplier to win over the market competitors, and allows the supplier to recover
the cost and profit. From the buyer's perspective, the right price should be affordable and enables
them to recover production cost and make a profit, and also allow them to compete fairly in their
market. Pricing plays an important role in marketing an organization's product as it will define the
price you will c...