Task: Pricing New Product
The product has to be something not on the current market.
Set a price for a new to the world consumer (this means a product that is not on the market) product. Identify a new product you think could be successful on the market and set an introductory price for it. Use the following questions to structure your written analysis.
Q1. What is the product name? Describe the product.
Q2. Identify and explain which market segmentation variable you are using.
Q3. Why did you choose this method of customer segmentation? Be specific.
Q4. Who is the target market? Be specific. Use demographics, psychographics (lifestyle), etc. to identify your customer. It is important to identify the characteristics of your target market--whatever is appropriate. Most marketers are able to specifically describe their target customer. For example, a 35-45 year old white collar male who lives in the suburbs with a wife and 1 child and makes $85,000 per year. When reading the explanation of the target market, one should be able to draw a picture in their mind of your customer.
Q5. What are your product’s benefits to the target market?
Q6. At what price will your product be introduced? Why?
Q7. What new product pricing strategy are you using? Why?
Q8. What objectives will be accomplished by using this strategy? Be specific.
Q9. Why is the product worth this price?
Q10. Identify and explain what happens to each of the 4 Ps at each stage of the PLC?