DB 4 Responses
Please response to each one of the team members with 100 words. Make sure the response is personal and not
negative. Please do not mention the people do not completed the task at hand. The post she be very positive.
Please do not use student it is personal.
Chistrial Cooper
A company setting its market pricing strategies does depend on several factors. According to Kotler & Lane Keller
(2016), a company must first select its own pricing objective, meaning whether intends to merely survive,
maximize current profit, maximize market shares, maximize market skimming, or become a leader in product-
quality. Each of these objectives will have a differing objective, however, the objectives our company has set out
for in the simulation are maximizing current profit and becoming a leader in product-quality. Because our target is
to provide mountain bikes that are built for the express purpose our consumers will purchase them for, we hope to
set our prices in a range that both promotes consumer satisfaction with a high-quality product and that also
maximizes our profit margins as we consolidate manufacturing and labor costs to maximize profits.
For our marketing structure, this means we are seeking to specifically target individuals in this market who want
our products and are willing to pay the prices we have set because it is a known quality product. We have created
our bicycles out of light-weight durable materials that should have a longer life cycle than our competition, and
also have complimentary products in our stores that can be used as replacement parts, should any considerable
wear & tear from use create a need to replace the product as a whole. Our models are set at market demand
pricing because we know that, especially children’s bikes, will have a shorter life cycle because children can
outgrow them pretty quickly, but the quality and pricing of our bikes make us the best alternative to replacing an
older smaller bike for a newer bike that fits the rider better.
One of the methods we might also consider in our pricing model might be a “buy back” program, or a resale
component to our business for discounts to consumers looking for lightly used bikes. This would be a great draw for
consumers who want to purchase bikes for their children, but don’t want to invest in a new bike every year
because of their growth spurts, and would keep them coming back to our store as an economical method of
keeping their kids riding. We could also look at making our bikes available with interchangeable parts that could
adjust the size of the bike without having to purchase a whole new unit. For example, this might include wider
handlebars, a seat riser, or larger pedals that could be exchanged and attached to their existing bike frame. This
would also extend the life cycle of the bike, but allow for repeat customers to frequent our shop as they look for
customizable bike options.
Reference:
Kotler, Philip T. and Lane Keller, Kevin (2016). A Framework for Marketing Management: Sixth Edition. Pearson.
Boston, Massachusetts. Retrieved from https://viewer.gcu.edu/FTFAJ3
Donna Blackman
When determining the pricing strategy for a new product and setting the price for the first time, a firm must
decide where they want to position the product. Branding strategies help drive the price to quality tiers within the
product offering and providing a range of price points for the product allows for more choices to the consumer.
The segments in the simulation are Recreation, Mountain, and Speed; each segment has different wants and
needs. Although the product is within the introduction phase, the diversity in the segments could allow multiple
pricing strategies to be utilized. The Recreation segment is moderately price sensitive and will pay extra for
comfort and ease of use but little else (Innovative Learning, 2016). The Mountain segment will be willing to pay a
premium for certain features associated with traversing difficult terrain (Innovative Learning, 2016). The Speed
segment is willing to pay a higher price for features that allow them more competitive ability over other riders
(Innovative Learning, 2016). According to Kotler and Keller (2016), the product life cycle can drive decisions
around marketing strategy; during product introduction the pricing strategy should be “charge cost-plus” (Kotler &
Keller, 2016). During the growth phase of the product, the pricing strategy should be “price to penetrate market”
(Kotler & Keller, 2016). In the maturity phase of the product, the pricing strategy should be “price to match or
best competitors’” (Kotler & Keller, 2016). At the decline phase, the product pricing strategy should be “cut
price” (Kotler & Keller, 2016).
References
Innovative Learning Solutions. (2016). Conscious capitalism [Marketing simulation]. Knoxville, TN: Author. ISBN 13:
9780984928279
Kotler, P., & Keller, K. L. (2016). A framework for marketing management (6th ed.). Upper Saddle River, NJ:
Pearson/Prentice Hall. ISBN-13: 9780133871319
Arlhelt Monroe
A product progresses through stages, life cycle, from introduction to growth, maturity, and decline involving
changes in the products’ marketing strategy. Within the introduction stage, the firm focuses on developing product
awareness within the established market. When considering a pricing strategy within in this stage, low pricing is
common to gain market share rapidly or high skim pricing to recover development costs. While marketing
communication continues to seek product awareness and educate potential consumers. In the growth stage,
pricing is maintained as the firm experiences increases in demand and aims their exposure to a broader audience.
In the maturity stage, while strong growth in sales diminish, the price may be lowered and marketing is shifted to
product differentiation. Finally, as sales decline, company’s try to rejuvenate the product, reduce costs or
discontinue the product (The Product Life Cycle). In conclusion, the demand for the product is a very vital factor
of how the business decides to price and promote their product or service. As shown in the stimulation, demand
can directly affect the price and the cost per unit of the product. This substantiate the importance of reevaluating
marketing and pricing strategies throughout multiple stages of a product to ensure effectiveness and if a change
needs to be implemented due to external factors regardless of steady revenues or profits, knowing consumer
behavior and responses to the product or business. Being one step ahead of market shifts is beneficial and
effective.
Reference:
The Product Life Cycle. (n.d.). Retrieved March 16, 2019, from
http://www.quickmba.com/marketing/product/lifecycle/
Randy Flores
There are different factors that play a role in the pricing strategy for any product. All products go through a life
cycle; which consists of five phases. The steps include product development, introduction, growth, maturity, and
decline. Customers are only aware of a few of the stages and some of the product life cycles include other stages
that people are not aware of. The withdrawal stage is when the item is expelled from the business sector.
However, pricing procedures just influence four phases of the product lifecycle (Stark, 2015). According to Kotler
and Keller (2016), “When introducing a product to the market and assessing the growth opportunities of that
product, a company and its marketers can use a “product-market expansion grid”, and a market penetration
strategy”. Hence, the price of the product usually starts off at a higher price. Some customers are aware of this
method and continue to purchase these products. Also, if the product does well then the retailer will continue to
produce the product and continue to sell it hence the marketing strategy of this product worked. During the
maturity, stage profits are higher and the competition starts lowering their prices to compete with other
businesses in their market. Rising market share, therefore, becomes essential using the market-penetrating
strategy. Throughout the declining stage companies have a decision to make to either stop selling their product or
completely lowering the price, however, all promotion of the product is stopped. When the product is taken out of
the market, market segmentation is essential (Stark, 2015). Even though, a business can implement a
diversification strategy to review other strategies that can work to make the product become a success.
According to Kotler and Keller (2016), “A company can search for new users among three groups: those who might
use it [the product] but do not (market-penetration strategy), those who have never used it (new-market segment
strategy), or those who live elsewhere (geographical-expansion strategy).” In the last few weeks of the simulation,
we have to assess what is best for our product. If we are making the right choices then our strategies that we have
implemented as a team are the correct ones and should benefit us towards the end of this process.
Reference
Kotler, P., Keller, K.L. (2016). A Framework For Marketing Management (6 th ed.). Prentice Hall: Pearson
Education, Inc.
Stark, J. (2015). Product lifecycle management. In Product Lifecycle Management (pp. 1-29). Springer
International Publishing.
Jamie Vega
All products go through five stages of the product life cycle, which include development presentation,
development, growth and decline. Customers and consumers are only aware of four stages of the product life cycle
because the product has not been presented during the advancement stage. Some product life cycle charts include
an extra stage called the withdrawal stage. This is experienced when the item has been excluded from the
business segment. The main factors that contribute to pricing strategy are the 4 P’s because price is the main
factor in determining profit or loss in an organization. The price of a product ultimately determines how much a
consumer will purchase, so when choosing a price, one must select a price that can result in making a profit. I
believe the market penetration strategy would be an effective strategy. Market penetration is one of the four
alternative growth strategies in the Ansoff Matrix (Free Management.com). A market penetration strategy involves
focusing on selling your existing products or services into your existing markets to gain a higher market share. This
is the first strategy most organizations will consider because it carries the lowest amount of risk. This strategy
involves selling more to current customers and to new customers who can be thought of as being in the same
marketplace. As the product moves through the lifecycle, prices need to be raised in order to create more profit
and this should start shifting the focus on new products and new consumers.
Reference:
Kotler, P., Keller, K.L. (2016). A Framework For Marketing Management (6 th ed.). Prentice Hall: Pearson
Education, Inc.
Market Penetration Strategy. (n.d.). Retrieved from http://www.free-management-ebooks.com/faqst/ansoff-
02.htm
Patrick Griesghia
Re: Topic 4 DQ 1
Within the simultion, I would say that our product is at the growth stage of its life cycle. Since we have just
introduced our product to the market and seen how welll its been received, we can now start increasing the
demand of our product by either lowering prices to create a competitive advantage within the industry. Or we
could diffrenentiate our product to showcase its qualities to our target segemnt. Either strategy would allow the
organization to create more overall revenue at the end of our products life cycle. As Decker highlights in his
article, "Eventually, your growth will plateau, as the market for your product becomes saturated, and your sales
come more from replacement purchases than from new purchases."(2019) As we see our growth phase eventually
decline, we will want to look at our pricing strategy. During the introduction of our product, our team used
penatrative pricing in order to create a competitive advantage. "Get their products out in the market so that the
products raise consumer awareness and induce buyers to try the products" (Woodruff, 2019) This highlights how we
introduced our product at a lower price to create demand for our product and as the simulation continues, we will
want to look at economy pricing. This will keep our prices lower than our competitors as we sell more products to
recoup revenue.
References:
Woodruff, J. (2019, March 04). Different Types of Pricing Strategy. Retrieved March 16, 2019,
from https://smallbusiness.chron.com/different-types-pricing-strategy-4688.html
Decker, F. (2019, February 12). Product Life Cycle Analysis & Price Strategies. Retrieved March 16, 2019, from
https://smallbusiness.chron.com/product-life-cycle-analysis-price-strategies-3281.html
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