Apple Pricing Strategy Essay

9001 Words Sep 6th, 2012 37 Pages
CRAM Exclusive
Essay Sample: Page 2
1.1. Internal factors

Overall marketing strategy, objectives, and Mix Organizational considerations

a) Customer Value- Based Pricing: uses buyers’ perceptions of value, not the seller’s cost, as the key to pricing. It means that the marketers cannot design a product and marketing program and then set the price. There are two types of value-based pricing: good-value pricing and value added pricing. Good-value pricing is the offering the right combination of quality and good service at a fair price. Value-added pricing is attaching value-added features and services to differentiate a company’s offers and charging higher prices.

b) Cost-based pricing: Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.

c) Competition- based Pricing is setting prices based on competitors’ strategies, prices, costs, and market offerings.

d) New-product pricing strategies: usually change as the product passes through its life cycle. The introductory stage is especially challenging. Companies bringing out a new product face the challenge of setting prices for the first time. They can choose between two broad strategies: market- skimming pricing and market-penetration pricing.

e) Product Mix Pricing Strategies: the strategy for setting a product’s price often has to be changed when the product is
CRAM Exclusive

Related Documents

  • Pricing Strategy Essay

    promotions, I can get those products at a lower price. I think I can pay less to get the same value, or get a higher value than what I pay by coupons and promotions.   2. Ron Johnson had a successful track record at Target and Apple. Are the questions around his new pricing strategy for Penney premature?   JC Penney is trying to find a customer segment that is not entirely focused on price and deliver a different experience to them. But the problem is that JC Penney is currently a “me too” retailer,

    Words: 881 - Pages: 4
  • Essay about Pricing Strategy

    Pricing Strategy for Wellness, Inc.Prepared by Marlowe K. Blackwell | How can Wellness, use Price Discrimination to increase revenue? | This document will identify, compare and analyze various pricing models currently used by competitors and recommend a pricing strategy for Wellness, Inc. to increase revenue and maximize profit. | 8/12/2013 8/12/2013 Outline 1. Introduction 2. Background of Wellness, Inc. a. Type of business b. Market segment 3. Background

    Words: 2200 - Pages: 9
  • Pricing Strategy Essay

    market alone would be at least 40% (2000 units). If they both entered, the potential sales increase would be at least 20% for each of them. Unfortunately, reaching that market would require pricing at $8.50, 15% below current levels. (a) If either company could costlessly segment the market for pricing (that is, charge the 15% lower price only to this new segment without undermining the prices charged to current customers), how much additional profitability could each company earn by achieving

    Words: 805 - Pages: 4
  • Essay Marketing Strategy of Apple

    Marketing Strategy of Apple Published by : 1 Introducing Apple Steve Jobs is the brain behind the very famous and very Popular Apple Company. Apple creates and designs desktop computers, Mac laptops, iTunes, iPods, the OS X operating system, the iPad and the iPhone. Apple has been in the business for quite some time now and they have indeed reported great success. It is currently one of the leading companies in the technological world and their products are growing

    Words: 10209 - Pages: 41
  • Marketing Strategy for Apple Essay examples

    Threats 5 Marketing process 5 Marketing mix 5 Products 5 Distribution Strategy 6 Promotion Strategy 6 Integrated Marketing Strategies 7 Situation Analysis Key objectives Apple was voted the general victor of the 2012 CMO Survey Award for Marketing Excellence. Apple has been chosen as the victor or co-champ for five back to back years by the example of top advertisers. Apple's unique points: 1. Empathy – Apple comprehends the needs of their customer superior to other organizations.

    Words: 3086 - Pages: 13
  • Apples Profitable but Risky Strategy Essay

    plus Case Answer – Apple’s Profitable but Risky Strategy Case study Apple’s profitable but risky strategy When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy. Note that this case explores in 2008 before

    Words: 2834 - Pages: 12
  • Essay about Pricing Strategies at Hp and Kodak

    PRICING STRATEGIES AT HP AND KODAK When marketing products, it is very unlikely that consumers will purchase every products created. The days of creating products and marketing to all consumers are over. Customers have wants and needs and they know where to go and find their wants and needs. The objective to a successful marketing campaign is to separate your product from the competition. Michael Porter developed a model to formulate strategy’s to gain competitive advantages over the competition

    Words: 853 - Pages: 4
  • Apple Branding Strategy Essay examples

    Apple's Branding Strategy Apple Inc. uses the Apple brand to compete across several highly competitive markets, including the personal computer industry with its Macintosh line of computers and related software, the consumer electronics industry with products such as the iPod, digital music distribution through its iTunes Music Store, the smart phone market with the Apple iPhone, and more recently magazine, book, games and applications publishing via the AppsStore for iPhone and the iPad tablet

    Words: 3807 - Pages: 16
  • Promotion and Pricing Strategies Essay

    Week 8 e-Activity Use the Internet or the Strayer Library to research a recent situation that has caused a business, not-for-profit organization, or government agency to suffer from bad publicity. Be prepared to discuss. "Promotion and Pricing Strategies" Please respond to the following: From the e-Activity, evaluate the situation of the organization you researched. Create a program outlining steps the organization might take to build better public relations. Ensure their search engines are

    Words: 611 - Pages: 3
  • Essay on Singapore F1 Pricing Strategy

    This report focuses on the use effective pricing strategies to maximize profits from F1 ticket sales. We believe this to be an important objective for the F1 management given high costs of hosting the F1 race each year. Effective pricing strategies can help to recoup the cost of the race and possibly even generate revenue for the organizers. The first part of this report focuses on the effectiveness of existing price strategies such as perception based pricing, price discrimination, bundling and discount

    Words: 3856 - Pages: 16