ADMS 2200 Study Guide - Value-Based Pricing, Maximum Exposure, Retail
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25 Nov 2014
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ADMS 2200 Full Course Notes
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Target products are priced with the competition in mind. Target is not concerned with setting high prices. Value pricing is being used to better accommodate the customers, as they are the ones that should feel confident in walking into target to purchase anything they might need. Our prices will offer a quality and exclusiveness that will appeal to our wealthy target market. This creates a significant advantage over brands like walmart, who offer similar merchandises, yet diminish their brand name by offering inexpensive, lower quality good to shoppers. As a new brand with distinct, innovative features, we will pursue the skimming price strategy. We have initially priced the product above our competitors, and we will eventually reduce our prices marginally. Maximize profit margins before competitors imitate target. Control demand during introductory phases, allowing us to match productive capacity to varying demand. By the maturity stage of targets lifecycle we will reduce prices by a small amount.