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 MGT301 2ND GDB SOLUTION

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PostSubject: MGT301 2ND GDB SOLUTION   Fri Jun 25, 2010 9:01 pm

If you are working as a marketing manager in a multinational
mobilemanufacturing company and your company wants to introduce a new brand ofmobile. What factors you
will consider while setting your pricing strategy?Discuss any three
factors which may affect your price-decision?


Solution:-

Being marketing manager for mobile company, the factors which I will
consider forpricing will be costs, competition and organizational
considerations.Further, Three factors which may affect my price decision
will be as follows:

a) Costs:Costs have to be calculated backwards from the target price
which theconsumer is ready to pay for the proposed mobile. Therefore,
cost is definitelya consideration when the product has to be priced to
meet the desired target aswe cannot put the target price which cannot
cover the costs at minimum.

b) Competition:Growing number of mobile manufacturers around the world
areposting a threat. Therefore to survive, one has to be competitive
both inpricing as well as in product offered. These days, high priced
mobiles are nolonger a privilege for customer.

c) Organizational considerations:Growing competition is now forcing
thecompany to keep some room open for further negotiations and
specialpackages that can be offered. For example these days, we may
offer mobilephones with free mobile connections by making liaison with
mobileconnection providers. This act will give both of us a new
customer. Their costfor a SIM card will be minimum but they will have
the revenue generated fromthe usage
of their connection. We will be able to sell our product with
anadditional item i.e. the SIM card which if purchased separately will
have itsown cost to be borne by consumer.


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