Marketing and Pricing

[Name of the instructor]

Marketing and Pricing

Introduction

Marketing

Good marketing strategies and proper pricing are the main factors for the success of any products. Marketing is everything, done to put products or services in the market for the customers. The concept of marketing is based on customer orientation, customer needs and customer satisfaction. Marketing is the process of identifying, expecting and fulfilling requirements of customers by achieving profits. Marketing is an activity performed to provide value to customers by creating and communicating in numerous ways. (J, Silk, 2006). It includes sales, pricing, packaging, public relations, and supply. The purpose of marketing is to make a link between customers and business, to develop the right product for the right customer on the right place at a right time in a fair price. It is all about meeting the needs and wants of the customers. It also means to know the different ways of delivering products and services to the customers, according to their demand.

It is a strategy to use recourses like money and time in such a way that required objectives to be achieved. The main key of marketing success is customers. Everyone in the organization is responsible for marketing. Marketing includes all activities to forward the product to customers from the producer that is designing of the product, promotions and price setting. It is like a link between customers and producers. The first step of the marketing process starts from marketing research and it ends when products reach the customer successfully.

Pricing

One of the most significant parts of effective marketing is right pricing of the products. Among all other parts of the marketing mix, it is the only part through which revenues are generated. It is the variable in the market that can be changed, as competitors price change. In simple words, the amount of money through which goods can be bought or sale is called price. Price can express the financial value of the product. Price is the most noticeable indicator of cost for consumers; therefore right pricing of a product is very important. Pricing is interlinked with the product positioning. For determining pricing of a new product following steps can be followed (NETMBA, 2010):

Develop a marketing strategy and make marketing mix decisions

Estimate the demand curve and calculate the cost

Understand environmental factors

Set pricing objectives and determine pricing

Loss of sales for the organization can be caused by pricing the product too high or too low. There are many pricing strategies that can be implemented by organizations.

Discussion

Lady Bug is a cell phone designed especially for senior citizens. Lady bugs are easy to use, smart and less complicated cell phones, and most convenient for senior citizens. Because of having fewer features, these phones are less expensive as compared to other cell phones in a market. Let's discuss some marketing plans for these cell phones.

Market opportunities for Lady Bug

There are many competitors of lady bug cells in the market such as AT &T mobiles, Verizon wireless, boost mobiles, ...