Pricing Strategy and Channel Distribution Essay

Pricing Strategy and Channel dispersion senior Concierge dos Kelly Spino Strayer University Dr. Robert Badowski snarf Determine and converse a determine dodge (penetration or shaving). Determine and discuss footing tactics ( harvest-time line determine, honour determine, differential pricing, or competing against private brands) to be practised for your product. Identify any statutory and ethical issues related to the pricing tactics. pull in a grocery storeing statistical distri simplyion head digest identifying the wholesaler, distributor, and retailer relationships.Discuss how the dispersion strategy fits the product/ serving, target market, and boilers suit merchandise documentals for the gild. As a accustomfulness agate line, Senior Concierge Service will protract non medical c atomic number 18 and maintenance for elderberry bush citizens and their families. This type of operate production line does not hire umpteen competitors, and pricing is l ogical among the senior c ar industry. The pricing strategy for Senior Concierge Service will be to stay within the normal ambit for its work.Consumers will choose Senior Concierge Service over the competition not by be, but by the quality of go offered. Price skimming is a pricing strategy in which a vender sets a comparatively high determine for a product or help at first, and then the determine is lower over time. This is a version of price discrimination. Price skimming allows a vocation to recover its resources quickly before a competitor gos in and lowers their prices, lowering the market price. The objective of a price skimming strategy is to capture the consumer surplus. There argon several potential problems with this strategy.It is effective tho when a line of products is facing an inelastic subscribe to curve ( remove that is not genuinely sensitive to a change in price). Skimming encourages the foundation of competitors. Penetration pricing is a more suit satisfactory strategy in this case. This strategy is a pricing technique of setting a relatively low initial entry price, oft lower than the market price, to attract new-fashioned customers. This strategy works on the chance that customers will switch to the new business beca mathematical function of the lower price. Penetration pricing is more or less commonly associated with a marketing objective of increasing market hare or sales volume, rather than to make pelf in the short term. This potty condense the competition by surprise, not self-aggrandising them time to react. It finish too shape goodwill among the early customer segment. This can progress to more trade done word of mouth. Ethical thinking is responding to situations that fill with principles concerning human behavior in honor to the appropriateness and inappropriateness of reliable chat and to the decency and indecency of the intention and results of such actions (distinctions amongst right and wron g).Marketers are ethically obligated for what is marketed and the image that a product portrays. Marketers carry to understand what good ethics are and how to in incorporated good ethics in various marketing campaigns to better move on a targeted audience and to gain aver from customers. (Wikipedia. com) Unethical or controversial marketing strategies imply bait and switch, pyramid scheme, think obsolescence, lock-in/ homage schemes, viral marketing, and, monopolies/oligopolies.In retail sales, a bait and switch is a form of fraud in which the ships company putting forth the fraud lures in customers by advertising a product or service at an fruitlessly low price, and then reveals to potential customers that the advertize good is not available but that a substitute is. A pyramid scheme is a non-sustainable business ideal that involves the exchange of notes primarily for enrolling other people into the scheme, without any product or service being delivered. Pyramid scheme s are a form of fraud.The scheme collapses when no more people are ordain to join the pyramid Planned obsolescence is the act upon of a product becoming obsolescent or non-functional after a certain(prenominal) period or occur of use in a way that is plotted or designed by the manufacturer. The blueprint of planned obsolescence is to hide the real cost per use from the consumer, and charge a high price than they would otherwise be impulsive to pay, or would be unwilling to lead all at once. For industries, planned obsolescence stimulates demand by encouraging purchasers to buy kind of if they still essential a military operation product.In business, vendor lock-in or customer lock-in, makes a customer dependent on a vendor for products and services, unable to use another vendor without substantial shift costs. Lock-in costs which create barriers to market entry may result in fair action against a monopoly. Loyalty programs include frequent flier miles or points systems associated with realisation card offers that can be utilise only with the original company, creating a comprehend loss or cost when transposition to a competitor.Most programs are able to get consumers to spend more money exactly to get to free or bonus item. Viral marketing and viral advertising refer to marketing techniques that use pre-existing social entanglements to produce increases in brand awareness. It can be grapevine delivered or enhanced by the network effects of the Internet. Monopolies and oligopolies often use anti-competitive practices, which can have a negative relate on the economy. This is why company mergers are often examined closely by giving medication regulators to avoid reducing competition in an industry.Since this business caters to seniors and their families, it is especially important for Senior Concierge Services to represent quality, value and faith in its services and staff. The success of this company depends on compassionate, trustworthy, conscientious, and ethical care givers providing non-medical in-home care. A different take on the loyalty program would allow customers to receive a discount after x amount of service visits or when prepaying for sextuple services. A marketing dissemination channel analysis is a means used to convey merchandise from the manufacturer to the end user.An intercessor in the channel is called a middleman. bring normally range from two-level channel without intermediaries to five-level channel with three intermediaries. Intermediaries in the channel of distribution are used to facilitate the address of the merchandise as salutary as to transfer title, payments, and information about the merchandise. diffusion describes all the logistics involved in delivering a companys products or services to the right place, at the right time, for the utmost cost. For many products and services, their manufacturers or providers use multiple conduct of distribution.Well-chosen transmit s timulate a significant competitive advantage, while poorly conceived or chosen channels can doom even a superior product or service to failure in the market. Distribution channels may not be confine to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. There have also been some innovations in the distribution of services, such as an increase in franchising and in rental services. There has also been some indication hat service integration can benefit many providers. Senior Concierge Services will manifestation to link with other service providers to create a mutually beneficial arrangement. medical checkup providers, beauticians, landscapers and general contractors would all be a good fit with the services offered. A distribution strategy defines how a business is going to create and satisfy demand for its products how a business is going to move products f rom point of creation to points of consumption, in a cost-effective manner as well as defining how a business is going to manage its brand.Todays customers shop and buy very otherwise than ever before. Access to high-quality information, via the internet, combined with their heightened price sensitivity, has created customers that are more sophisticated, better advised and often times, more demanding than customers of the past. A distribution strategy must be in sync with how the customers of Senior Concierge Service want to shop for services. Franchising is an option worth considering. For a fee, a small business possessor can take advantage of the marketing research completed at the corporate level.