Determine Pricing Strategy to Meet Organizational Goals

Learning Team A Reflection of Week Three Objectives Patrece James, Angela Roth, Michele King, Domingo Cuison University of Phoenix ECO/561 Professor David Flesh April 16, 2012 Week 3 learning objectives are 1) Determine pricing strategy to meet organizational goals; 2) Determine ways to create non-price barriers to entry based on market structure; 3) Determine ways to increase product†¦show more content†¦This works well if there are cost savings from selling in volume. Lastly, offering price discounts is another strategy used to meet marketing objectives. The discount could be based on quantity purchased or method of purchase. For example, cash purchasers could be offered a discount. Ways to Create Non-price Barriers. The factors that prohibit firms from entering an industry are called barriers to entry. Most utility companies, such as gas, electricity and water are government regulated and typically monopolies. In pure monopoly, strong barriers to entry effectively block all potential competition. Somewhat weaker barriers may permit oligopoly, a market structure dominated by a small number of sellers. Examples of this may be telephone and cable companies. So barriers to entry are pertinent not only to the extreme case of pure monopoly but also to other market structures in which there is some degree of monopolistic conditions and behavior. Ways to Increase Product Differentiation. One way to increase product differentiation based on a monopoly market structure is to categorize the market into elastic and inelastic groups. The example given in the book separates small business and students when selling a software package. Small businesses represent the inelastic group; they have the money to purchase software packages at a higher price and students are the elastic group and do not have the income toShow MoreRelatedMarketing Strategy : Price Is What Makes Profits And How Customers Perceive The Value Of A Product Or Service1486 Words   |  6 PagesMarketing Strategy: Price Price is what makes profits and how customers perceive the value of a product or service. Companies will determine prices based on their financial status; quality, costs and the nature of the good. According to Armstrong, G., Kotler, P. (2015), â€Å"price is the sum of all the values that customers give up to gain the benefit of having or using a product or service† (p. 266). 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