Assignment 11: Essay Questions
Essay Questions-Assignment 11
Paula Gray Lemons
California Southern University
Marketing/MKT 86502
August 14, 2015
Dr. Fogel
1. As the marketing manager for your product, you have been forced to take a price increase due to cost pressures from your suppliers. After adjusting for customer and consumer demand fluctuations and elasticity, you feel that you have accounted for all possible reactions. Your boss, however, feels differently and says that your recommendations are not complete. What other factors, besides consumer/customers, are affected by price changes? Another factor that must be considered is the price that one’s competitors are offering the product or service. Because if the competitors are not increasing prices …show more content…
and one’s firm is, the company will lose the consumer. As well, one must consider the impact on the company’s distributors and dealers.
Because if the company’s price increase, the distributors and dealers will have to increase their pricing or decide other objects that will impact the revenue of the company (Kolter & Keller, 2012). 2. As the marketing manager for a “brand leader” in your industry, you noticed that a competitor has just reduced his prices by 15 percent on his number one selling product. In a memo to your boss, you must outline how (or if you wish to) respond to this latest threat. In creating your letter, you outline five possible response alternatives that are available to you. These five responses are?
The five alternatives that I would outline are as follows:
i. Change the size of the our product; ii. Try substituting a lower cost material with the almost same quality; iii. Start charging for installation and delivery over ten (10) miles from the warehouse; iv. Negotiate with shipping to find a less expensive packaging material;
v. Reducing the choices being offered for the models (Kolter & Keller, 2012).
3. In responding to a competitor’s price cut, a firm in a nonhomogeneous market has more latitude and should consider what four issues before
responding?
1) Why did the competitor change the price? To steal the market, to utilize excess capacity, to meet changing cost conditions, or to lead an industry-wide price change?
2) Does the competitor plan to make the price change temporary or permanent?
3) What will happen to the company’s market share and profits if it does not respond? Are other companies going to respond?
4) What are the competitors’ and other firms’ responses likely to be each possible reaction (Kolter & Keller, 2012)?
References
Kotler, P., & Keller, K. L. (2012). Marketing management, 14th ed. Upper Saddle River: Pearson Education, Inc.
Paula Gray Lemons
California Southern University
Marketing/MKT 86502
August 14, 2015
Dr. Fogel
1. As the marketing manager for your product, you have been forced to take a price increase due to cost pressures from your suppliers. After adjusting for customer and consumer demand fluctuations and elasticity, you feel that you have accounted for all possible reactions. Your boss, however, feels differently and says that your recommendations are not complete. What other factors, besides consumer/customers, are affected by price changes? Another factor that must be considered is the price that one’s competitors are offering the product or service. Because if the competitors are not increasing prices …show more content…
and one’s firm is, the company will lose the consumer. As well, one must consider the impact on the company’s distributors and dealers.
Because if the company’s price increase, the distributors and dealers will have to increase their pricing or decide other objects that will impact the revenue of the company (Kolter & Keller, 2012). 2. As the marketing manager for a “brand leader” in your industry, you noticed that a competitor has just reduced his prices by 15 percent on his number one selling product. In a memo to your boss, you must outline how (or if you wish to) respond to this latest threat. In creating your letter, you outline five possible response alternatives that are available to you. These five responses are?
The five alternatives that I would outline are as follows:
i. Change the size of the our product; ii. Try substituting a lower cost material with the almost same quality; iii. Start charging for installation and delivery over ten (10) miles from the warehouse; iv. Negotiate with shipping to find a less expensive packaging material;
v. Reducing the choices being offered for the models (Kolter & Keller, 2012).
3. In responding to a competitor’s price cut, a firm in a nonhomogeneous market has more latitude and should consider what four issues before
responding?
1) Why did the competitor change the price? To steal the market, to utilize excess capacity, to meet changing cost conditions, or to lead an industry-wide price change?
2) Does the competitor plan to make the price change temporary or permanent?
3) What will happen to the company’s market share and profits if it does not respond? Are other companies going to respond?
4) What are the competitors’ and other firms’ responses likely to be each possible reaction (Kolter & Keller, 2012)?
References
Kotler, P., & Keller, K. L. (2012). Marketing management, 14th ed. Upper Saddle River: Pearson Education, Inc.