Posted on by Judy

Describe pricing objectives, strategies, and tactics to attract new customers, encourage repeat purchases, and reward loyal customers.

Answer:
Pricing objective:
Pricing objective describes about pricing process of the product and the prices should reflect on the company’s marketing,financial and strategic goals
Products are priced based on the customers expectation of prices for the products,demand for the products and the production resources cost .All these factors should be considered before pricing a product
Pricing objectives should include maximizing short run profits,increase in sales volume,matching competitors price,meeting target rates of return
Pricing objectives require pricing strategies inorder to achieve the goals
Strategies:
Penetration pricing:
The products are priced low initially inorder to achieve the market share.Once the market share is gained then the prices are increased.This pricing is used to mainly acquire large number of customers
Economy pricing:
Pricing of the products on based on the economic condition.During recession the economy pricing sees more sales.This method of pricing in which a low price is assigned to a product with decreased production costs.
Price skimming:
This method of pricing involves higher prices for the product because it has gained a competitive advantage over their competitors.Prodcuts are priced high but the quality is low
Premium pricing:
The products are priced high and the quality of the products are also assured and it is high.Premium pricing targets only high class customers
Tactics to attract new customers:
-Promotional activities must be done to attract new customers
-Advertisements can create awareness about your product and attract some customers
-Creating a new web page on social media and posting ads may attract online users
-Conducting campaigns about your product benefits may attract a large customer base
-Sending personal mails about your product benefits
Encourage repeat customers:
-Send regular customer newsletter or emails
-Surprise and delgight your customers with new product lines
-Connect with them on social media and post information about the new product arrivals of their choice
-Customization of products can be done according to their needs so that they purchase regularly
-Offer a discount or specials coupons for purchase
Reward loyal customers:
-Conduct customer loyalty programs and invite them and encourage them
-Offer them special products of their own choice for free
-Give gifts,specials coupons or vouchers that excite them
-Make the loyal customers a priority and treat them friendly
-Solve the problems and service readily for loyal customers
-Provide bonus points for their amount of purchase by giving a card and accumulating the bonus points for every purchase and providing discounts for the points they have reached
 
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."

"Order a Custom Paper on Similar Assignment! No Plagiarism! Enjoy 20% Discount"

Related posts:

  1. Pricing strategies” | Accounting homework help
  2. Is JCPenney Killing Itself with a Failed Strategy? A few years ago, JCPenney was a traditional, low-end department store that appeared to be in a slow decline. Bill Ackman of Pershing Square Capital Management, a hedge fund investor, bought a large stake in the company and pushed to hire a new CEO, Ron Johnson. Johnson, who had successfully created the Apple retail store con- cept, was tasked with turning around the company’s fortunes. In January 2012, Johnson announced the new strategy for the company and rebranding of JCPenny. The strategy an- nounced by Johnson entailed a remake of the JCPenny retail stores to create shops focused on specific brands such as Levi’s, IZOD, and Liz Claiborne and types of goods such as home goods featuring Martha Stewart products within each store. Simultaneously, Johnson announced a new pricing system. The old approach of offering special discounts through- out the year was eliminated in favor of a new custom- er-value pricing approach that reduced prices on goods across the board by as much as 40 percent. So, the price listed was the price to be paid without further discounts. The intent was to offer customers a “better deal” on all products as opposed to providing special, high discounts on selected products. The intent was to build JCPenny into a higher-end (a little more upscale) retailer that provided good prices on branded merchandise (mostly clothes and home goods). These changes overlooked the firm’s current customers; JCPenny began competing for customers who normally shopped at Target, Macy’s, and Nordstrom, to name a few of its competitors. Unfortunately, the first year of this new strategy appeared it to be a failure. Total sales in 2012 were $4.28 billion less than in 2011, and the firm’s stock price declined by 55 percent. Interestingly, its Internet sales declined by 34 percent compared to an increase of 48 per- cent for its new rival, Macy’s. All of this translated into a net loss for the year of slightly less than $1 billion for JCPenny. It seems that the new executive team at JCPenny thought that they could retain their current customer base (perhaps with the value pricing across the board), while attracting new customers with the new “store- within-a-store” concept. According to Roger Martin, a former executive, strategy expert, and current Dean at the University of Toronto, “… the new JCPenney is com- peting against and absolutely slaughtering an import- ant competitor, and it’s called the old J.C. Penney.” Only about one-third of the stores had been converted to the new approach when the company began to heavily pro- mote the concept. Its new store sales produced increases in sales per square foot, but the old stores’ sales per square foot markedly declined. It appears that Penney was not attracting customers from its rivals but rather cannibal- izing customers from its old stores. According to Martin the new CEO likely understands a lot about capital mar- kets but does not know how to satisfy customers and gain a competitive advantage. Additionally, the former CEO of JCPenney, Allen Questrom, described Johnson as having several capabilities (e.g., intelligent, strong communicator) but believes that he and his executive team made a major strategic error and was especially insensitive to the JCPenny customer base. The question now is whether the company can sur- vive such a major decline in sales and stock price. In 2013, it announced the layoff of approximately 2,200 employees to reduce costs. In addition, CEO Johnson announced that he was reinstituting selected discounts in pricing and offering comparative pricing on products (relative prices with rivals). The good news is that trans- formed stores are obtaining sales of $269 per square foot, whereas the older stores are producing $134 per square foot. Will Johnson’s strategy survive long enough for all of the stores to be converted and save the company? The answer is probably not, because Johnson was fired by the JCPenny board of directors on April 8, 2013, about 1.5 years after he assumed the CEO position. 1. What strategy was the new CEO at JCPenney seeking to implement given the generic strategies found in Chapter4? 2. What was the result of change in strategy implemented? 3. Why was this strategy a disaster for JCPenney? 4. What does it mean to be “stuck in the middle” between two strategies (I,e, between low cost and differentiation strategies) ?
  3. Loyalty programs such as those run by airlines do not create loyalty and retain customers. Once all competitors offer similar schemes, all that happens is that marketing costs have risen in that industry. Argue for or against the proposition that loyalty programs are effective customer retention strategies. What is the relationship between customer satisfaction and retention? Go online and identify three for-profit companies engaged in values-based retention marketing. What similarities can you find between them? Some customers are inherently not profitable and ‘retain’ because they extract more value from the firm than they provide in terms of revenue, reputation and recommendation. Identify three strategies for addressing this sort of retention ‘problem’. What are the risks of each for the business? Directions and Criteria Question 1 should have a word count of no less than 150 words. Questions 2 & 4 a minimum word count of 100 words. Question 3 should have a minimum of 200 word count and at least one website cited. A total of 550 word count for your submission.
  4. Describe the infrastructures for e-Business, both hardware and software and their influence on information seeking patterns, strategies, and tactics and browsing strategies