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    Pricing Strategy Assignment

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    Quel
    Nokia's pricing strategy was successful because they researched customer needs and priorities to develop different phone options at various price points. They priced their phones lower than competitors while still earning good profits by managing resources well. This allowed more customers to afford Nokia phones and increased sales. The six stages for establishing prices are: 1) developing pricing objectives, 2) assessing target market price evaluation, 3) evaluating competitor prices, 4) selecting a pricing basis, 5) choosing a pricing strategy, and 6) determining a specific price. Researching customer and market factors at each stage helps set the most effective price.

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    Pricing Strategy Assignment

    Uploaded by

    Quel
    225 views2 pages
    Nokia's pricing strategy was successful because they researched customer needs and priorities to develop different phone options at various price points. They priced their phones lower than competitors while still earning good profits by managing resources well. This allowed more customers to afford Nokia phones and increased sales. The six stages for establishing prices are: 1) developing pricing objectives, 2) assessing target market price evaluation, 3) evaluating competitor prices, 4) selecting a pricing basis, 5) choosing a pricing strategy, and 6) determining a specific price. Researching customer and market factors at each stage helps set the most effective price.

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    Pricing Strategy

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    PRICING STRATEGY ASSIGNMENT

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    Nokia's pricing strategy was successful because they researched customer needs and priorities to develop different phone options at various price points. They priced their phones lower than competitors while still earning good profits by managing resources well. This allowed more customers to afford Nokia phones and increased sales. The six stages for establishing prices are: 1) developing pricing objectives, 2) assessing target market price evaluation, 3) evaluating competitor prices, 4) selecting a pricing basis, 5) choosing a pricing strategy, and 6) determining a specific price. Researching customer and market factors at each stage helps set the most effective price.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    225 views2 pages

    Pricing Strategy Assignment

    Uploaded by

    Quel
    Nokia's pricing strategy was successful because they researched customer needs and priorities to develop different phone options at various price points. They priced their phones lower than competitors while still earning good profits by managing resources well. This allowed more customers to afford Nokia phones and increased sales. The six stages for establishing prices are: 1) developing pricing objectives, 2) assessing target market price evaluation, 3) evaluating competitor prices, 4) selecting a pricing basis, 5) choosing a pricing strategy, and 6) determining a specific price. Researching customer and market factors at each stage helps set the most effective price.

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    of 2

    QUELREN A.

    MCGOWAN

    BSBA 501

    PRICING STRATEGY ASSIGNMENT #2

    1. Critic the given case.

    The strategy of Nokia is excellent from the planning to the pricing. Nokia innovated different types
    of phones that the customers need. They gathered information of what are the types of phones that the
    people would buy. Aside from the expensive phone or we can say the limited edition phone that rich
    people would actually want and buy, they also presented phones that are really helpful like the common
    phones that are used to download applications, listen to music, play videos and others, and also, the
    type of phone that has full keyboard. Because of these options, the people can choose from different
    varieties depending on their needs.

    Aside from this, Nokia set their price lower than their competitors but still manage to gain good
    profits because they are able to manage their resources well. Due to this, people can now switch to their
    products because theirs are more affordable.

    To summarize, Nokia planned for their products very well and researched the communication needs
    and priorities of the consumers and businesspeople, that’s why their products are bought by many.

    2. Discuss the stages for establishing prices.


    a. Development of Pricing Objectives

    This is the first stage for establishing prices. A company or business need to develop their objectives
    first. They should decide where it wants to position its market offering. It will be easier to set the price if
    the objectives are clear.

    b. Assessment of Target Market’s Evaluation of Price

    In the second stage for establishing prices, the business should do assessments of evaluation of price for
    their target market which means they need to research for their target market to set their price. Each
    price will lead to a different level of demand and have a different impact on a company’s marketing
    objectives. The normally inverse relationship between price and demand is captured in a demand curve.
    The higher the price, the lower the demand. Most companies attempt to measure their demand curves
    using several different methods like surveys, price experiments, and statistical analysis.

    A firm should estimate a new product’s desired functions & determines the price that it could be sold at.
    From this price the desired profit margin is calculated. Now the firm knows how much it can spend on
    production whether it be engineering, design, or sales but the costs now have a target range. The goal is
    to get the costs into the target range.
    c. Evaluation of Competitor’s Prices

    This is the third stage for establishing prices and here, considering the prices from your competitors is
    very important. Basically, the firm should benchmark its price against competitors, learn about the
    quality of competitors offering, & learn about competitor’s costs. This will help your business a lot in
    setting your price.

    d. Selection of a Basis for Pricing

    An organization has various options for selecting a pricing method. Prices are based on three dimensions
    that are cost, demand, and competition and this is the fourth stage for establishing prices. The
    organization can use any of the dimensions or combination of dimensions to set the price of a product.

    e. Selection of a Pricing Strategy

    As for the fifth stage, it involves the selection of a technique for setting the price. There are various
    types of pricing methods used by organizations. Let us always remember that an effective strategy is
    very important in a business because the effectiveness of your strategy could be the key factor for your
    business to be successful.

    f. Determination of a Specific Price

    Pricing methods narrow the range from which the company must select its final price. In selecting that
    price, the company must consider additional factors like the impact of other marketing activities,
    company pricing policies, gain-and-rick-sharing pricing, and the impact of price to the other parties.

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