Price Strategy determination Based on six Steps TV Cable company Fiction

Feb 3rd, 2012
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Assume you are the marketing manager for a local cable company. You have some direct competitors including AT&T U-verse and DirecTV. Using the six steps outlined in your textbook for setting a pricing policy, prepare a report for your Vice President on your suggested pricing strategy for your service. Topics Covered Determine your price objective with your justification. Determine the demand of your service and how this influences your pricing strategy. Estimate your cost elements and discuss how this will influence the price of your service. Prepare a competitive price analysis. Select your pricing method and determine your final price along with your justification. Introduction (i) Price Objectives and justification:- (ii) Costs (iii) Level of Demand:- (iv) Competitor`s Price Analysis (v)Pricing Method Reference

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Showing Page: 1/5
Determination of price is crucial for an organization. Determination of correct price not onlycontributes to the organization`s profitability but also affects success of product. Price is onethe important factor in five P`s of marketing mix. Although other P`s of marketing are veryimportant but price is still very important factor that affects market share and profitabilityorganization. Price is pretty flexible element as it can be altered very quickly as compared toother P`s of marketing mix. According to Ray(2012 )Price directly influence demand,profitability, market perception and brand positioning. Following factors should be consideredwile determining price.(i)Price Objectives and justification:-Determination of product price should be based on Long term (Strategic objectives)and short term(Tactical objectives). The organizations long term plan is to developitself as leading Cable service Provider Company in USA. Organization also wants tobecome top choice among the customers. Doing so will require extensive increase incustomer base that will require investments to expand its network as well. Companyhas strategic objective to reach 70% of USA houses(Marcus,2012). While short termobjective is to expand its customer base quickly to gain some profits so thatorganization can help expand its network to new areas. Keeping in view of Longterm and short term objectives the price objective for organization is Offerattractive price to customers in order to

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