Discussion: PricingOne of the 4 P’s Being up to date with current events is an i
ID: 384224 • Letter: D
Question
Discussion: PricingOne of the 4 P’s
Being up to date with current events is an important part of becoming a business professional. In marketing, it is part of an important responsibility to continuously scan the external environment for opportunities and threats. Execute the following steps to successfully complete this Discussion on the pricing component of the marketing mix:
Step 1: Choose a current article on pricing from the Library located in the home area of the course room. You can use the following search terms: The 4 P's -Pricing
You can also view a tutorial on the 4 P’s located in the Course Documents.
Step 2: Cover the following topics in your Discussion answer in essay format:
Discuss the key purpose of the article in relation to the pricing component of the Marketing Mix.
Identify two pricing concepts that you learned from reading this article.
From the perspective of a professional, what impact does the information on pricing in this article have on the marketplace?
From the perspective of a consumer, what impact might the pricing concepts in the article have on the buying decisions of consumers?
How might this information on pricing affect you personally?
Explanation / Answer
I would like to choose Apple Inc article and discuss further on 4P’s of marketing (product, place, pricing & promotion). Apple to continue the business globally expanded the business through various other channels with the help of product mix and also with the help of promotion.
Apple’s marketing mix throw’s light on how the company represents itself in the market and its products. It has a perfect marketing mix plan by taking advantage of different distribution like having an authorized Apple store, online store only can sell their products. Apple uses premium pricing strategy which yields good profit also for them. Since Apple attracts many of the middle level and high class customers it helps in building goodwill for the company. In this article we got to learn Premium pricing concept and Penetration pricing concept. Initially the Apple phone or any gadget prices were very high and the products were very unique when compared to other products in the market. Apple made this strategy to earn better profit in the initial stages they entered the market to gain competitive advantage. Later they implemented penetration concept where to capture the market globally Apple started introducing offers to attract the middle level customers also. This gave a good boost to Apple to have a bigger customer list.
As a professional I look @ Apple as a company who made a good pricing strategy to compete with the customer in the market. Since there were other competitors in the market, Apple had to display themselves differently. Hence they increased the price of the product which made every one look towards Apple and the features were totally different from other competitors. So, Apple became a unique brand. Initially Apple was operating in only USA and slowly with the word of mouth by customers it increased its customer base across the world. There is no country who does not use Apple today. It has built a large amount of goodwill across the country and side-lined many other competitors. Today there is no competitor for Apple in the world.
For consumers, initially it was very difficult since the price of the product was very high and consumers were looking for other competitor products. Even though the product was unique it was difficult for middle class customers to buy the product. Only white collared people were buying Apple products. Slowly when Apple started reducing the price it started attracting the people of middle class as well. Also Apple started releasing the offers for apple products which made consumers wait for the offers to release and they buy Apple product. When the Apple is giving the products for less price why would anyone go for other products? So, consumers started thinking why buy other products when Apple is giving the products for the same price. This is the impact which Apple created to consumers.
For me personally I can say that even I have the iPhone now. Initially even I was reluctant to buy iPhone looking at the product pricing. Since the company made some strategies and started attracting customers with good offers even I have bought the iPhone. So, I have got the phone for the same price which was giving to buy other company phones. I would never go for other products.