MKT 220 Module 4 Homework Assignment
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MODULE 4 HOMEWORK ASSIGNMENT
King of the South
Allied American University
This paper was prepared for MKT 120, MODULE 4 HOMEWORK ASSIGNMENT taught by PROFESSOR K
PART I: Read Pay What It’s Worth.
Would this concept work in an upscale restaurant? Why or why not?
I must admit that upon reading the article, “The Customer Experience: Pay What It’s Worth,” my jaw dropped to the floor. I read it again and still had a hard time processing it. On the one hand, it appears that Terra Bite Lounge’s pricing objectives are definitely not aimed to maximize profits and yet again, as the article clearly states, this business model generates …show more content…
Jobs are still very hard to come by, and even the people with jobs are living at the verge of their life standards not beyond them.
PART II: Marketing Plan Development (Continued)
1. For Part one of this assignment, please see attached Excel spreadsheet
2. For part two of this assignment, I will be explaining how my pricing strategy and it is as follows:-
Let’s start off with a little background information. As it stands, the NutriBullet, which has been in the market since 2011 has been selling at a fixed price of $99.99 which is the same price my competitor, the Ninja, is selling their product for. The NutriBullet has been generating annual profits of about 5 million and I expect the NutriBullet M2 to double the profits generated by its predecessor. Having said that, it is pretty evident that my pricing objective is profit oriented. According to Lamb, Hair, and McDonald (2012), “Profit-oriented objectives include profit maximization, satisfactory profits, and target return on investment.” (p. 561), all of which are in line with my goals for the new product. My main goal in attempting to maximize profits is by increasing customer satisfaction by offering them a tailored nutrition guide to go along with the product which is going to be selling at $20.00 less than its predecessor. My incline to promote customer satisfaction more than attempting to reduce operation costs is based off of Lamb, Hair, and McDonald research that show,