Free «Market Pricing» Essay Sample

Market Pricing

SLP1 introduces the project/PRIMETECH and the proposed strategy.  The collage chooses a strategy which seeks to give the institution a competitive advantage. This was done by identifying the gaps that exists in early childhood education in Africa. The collage strategy aimed at providing quality services through a cost effective way to customers. It seeks to secure a strategic location and advertising put in place advertising measures for publicity. The institution look forward to be people oriented while meeting legal, social and spiritual expectations.

SLP2 builds on section one giving the various target groups and the services that the collage is to offer. The nursery school is basic to the project as they have a great influence on the future of the child by determine their perception of school. In its justification, it notes that most of these teachers are untrained and majority of them are school dropouts. The collage also noted the competition it is likely to face from other similar institution and underlined the need for survival strategy. The major proposed strategies included diversity of services, introduction of nursery school. The collage also seeks to employ integrated approach focusing school dropouts, teachers, children in nursery and upper classes. In adding quality to its trainings, it seeks to attach its trainers to nursery schools for more experience.

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SLP3 clarifies further on the marketing strategy of the use of limited resources while increasing sales to attain maximum profits. The project seeks to meet this by meeting market expectations. It also seeks to offer its services at lower costs by offering scholarships and allowing the payment of fees in installments. Other strategies identified are accessible location, advertisement to create awareness, offering diversity of services and the analysis of competitors as a survival mechanism.  To standout the project seeks to teach the children some elements of technology and offer constant training of teachers to changers in syllabus and curriculum. It also seeks to ensure accessibility through maintained infrastructure, increased working hours and website development.

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SLP4 underlines the importance of communication and marketing. The project seeks to improve its communication infrastructure through opening addresses, website and through its management. The project discourages personal selling while providing emails for customer feedbacks and hotline telephone number free to the customers. These measures seek to ensure adequate customer support. It therefore engages trained personnel to manage its communication while encouraging close evaluation of work and sales. Communication must be timely, accurate to the needs of customers and easy. Averting is to be majorly through the internet. Such measures are intended to maintain positive image by customer oriented quality service. The strategy seeks to promote sales through after sale service, goods delivery, providing warranty, technical advices, using website for online advertisements.

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Price setting: The business will seek to set its prices using variety of methods to avoid errors. The methods will include; costing out a price. This method will ensure that the business costs and the desired profit are taken into account. The strategy will be to ensure that we offer quality services at a lower cost. Our prime aim would be to ensure that or direct costs and the indirect cost are settled and not profit making. This will give the business a competitive advantage.

The business second method of determining prices would be by pricing competitively. The business will maintain price relatively reasonable to the market prices. The organization will carry out a competitive surveillance into a number of training collages offering similar services before the prices are reached. The third method would be price by position. The organization will through its prices seek to win favor with the customers. This will be complemented with services such as offering scholarships to the deserving students.

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Temporary price promotions: the organization will seek to avoid the negative post promotion effects especially the loss of brand loyalty of temporary pricing promotions.  The project in its goal of providing customer oriented services will instead seek long lasting strategies to enable it win favor with the different segments of its customers.

Price Discrimination: The business will minimize the use temporary price promotion in favor of the price discrimination strategy. This will by through measures such as providing scholarship to the deserving students. It will also allow the payments of fees in installments according to the ability of each parent. The organization will involve qualified sales personnel to carry out an extensive research on the price elasticity of demands between markets. These will enable the organization to predict the price elasticity of demand for all the categories of our consumers. Our organization will also seek to establish close customer relations to limit the switching of our potential customers to our competitors. However, the organization will minimize the cost of the research by engaging most of our customers online. To attract students from, far areas the institution will offer accommodation and food at affordable prices. Customers from far will also be able to use the website to check the products we offer and carry out the transactions. The business will also deliver the goods to their doorsteps.

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Calculation of the expected profits: After calculating the direct and the indirect costs the business incurred on each segment, the price can be estimated. If the collage is likely to in training 100 teachers annually incur an expense of 1 million. The lowest price charged for this segment annually would then be one million divided by one hundred (10,000). This price will then be compared with that of other competing business to help arrive at the final price. This will then be done for all segments.

Improvements to SLP through my own thinking: the strategy has consistently improved since its introduction through constant evaluation and competition from other institutions.

Improvements to SLP due to feedback: the improvement of the strategy has also been facilitated by feedbacks from the customers. Such feedbacks come through the organizational postal address, website and during the field research. The organization then introduces new measures to incorporate the recommendations of the customers.

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