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Essay / Research Paper Abstract
This 5 page paper outlines a pricing and distribution strategy for a new firm offering mobile braking services. The different approaches which may be used as discussed with the optimal strategies being identified. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEmobrake2.doc
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Unformatted sample text from the term paper:
is to determine the pricing strategy that is to be used. The mobile brake mechanic service is entering a market where similar services are offered, even if they are being
offered in a different manner. The firm has a number of choices, the strategy chosen needs to be based on the resources and capabilities of the firm, the market position
and demand within that market (Kotler and Keller, 2008). With the strategy determined issues such as the supporting tactics, ethical issues, marketing and distribution may be discussed. 2. Pricing Strategy
There are a number of different strategies which may be adopted the alternatives need to be looked at before making a decision. Aggressive strategies may include penetration pricing where
a product is prices as a very low rate on a temporary basis to help establish itself in the market. The idea is to allow the product to become established
and create the demand for the product before increasing process. Many large firms may use this when launching a product to encourage consumers to try a product. If the firm
wants to capture market share there is also a more aggressive strategy; predatory pricing. Predatory pricing where pricing is set below cost in order to gain the purchases from the
former customers of the competition, with the aim of keeping them when prices are increased (Kotler and Keller, 2008; Mintzberg et al, 2008). An alternate approach may be price
skimming; this is where a price is set at a high level to skim the consumers which are not price sensitive (Nellis and Parker, 2006). This is a strategy which
may be used when new innovative products are brought to market, with the firm appealing to early adopters (Hooley et al, 2008). Early adopters tend to be less price sensitive
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