“Today’s squeezed consumers are seeking greater value—just the right combination of good quality and service at a fair price”. (Kolter p.95) While fair is a difficult term to define, our customers need to feel that they are not being ripped off. “Price is the sum of all the values that customers give up in order to gain the benefits of having or using a product or service”. (Kolter p.275) Our brand isn’t just about the Vodka it’s about a life style. The pricing of our product will make it just above the price point of the customer that is only concerned with price, yet close enough that they will be tempted to purchase above what they would normally spend to “live Large.” “In the normal case, demand and price are inversely related; that is, the higher the price, the lower the demand.” (Kolter p.283) because of this we set our price at what could be considered to be just above the middle of the price range. At $39.99 a bottle people will expect our vodka to be a quality product and that is what they will get. “To the extent that customers view the services of different providers as similar, they care less about the provider than the price. The solution to price competition is to develop a differentiated offer, delivery, and image.” (Kolter p.226)
Kotler, Gary Armstrong and Philip. Marketing: An Introduction for Education Management
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