Unit 4 Discussion: Pricing Strategies
Unit 4 Discussion: Pricing StrategiesOverview:The marketing mix is a key set of tools within the microenvironment, which helps an organization produce the response it wants from their target market. It’s made of up the 4Ps, which include product, price, place, and promotion. When these four factors are aligned properly, they play an important role because it encompasses everything an organization can do to deliver customer value and engage consumers.Simulated Business Scenario:Mohammad is a baker who is planning to start his own business and open a bakery in his hometown in Connecticut. He has spent a lot of time and effort perfecting his cookie recipe , which he has been making over the years from a family recipe.Mohammad is concerned that he is spending too much time and effort on the actual cookie recipe (product) and not enough time on the remaining 3Ps. In order to ensure a successful launch of his new business, Mohammed hired you to help with the bakery’s grand opening. He asked you to prepare a report detailing what the bakery can do to deliver customer value.Questions:
- 1) What would you recommend Mohammed do to create a proper balance between the 4Ps (integrated marketing mix) for his bakery? In other words, what would you advise Mohammed do with:
- Product
- Price
- Place
- Promotion
