Assume you are the marketing manager for a local cable company. You have some direct competitors including AT&T U-verse and the Dish Network. Using the six steps outlined in your textbook for setting a pricing policy (see bolded text below for the 6 steps), prepare a report for your Vice President on your suggested pricing strategy for your service.
In setting pricing policy, a company follows a six-step procedure. It selects its pricing objective. It estimates the demand curve, the probable quantities it will sell at each possible price. It estimates how its costs vary at different levels of output, at different levels of accumulated production experience, and for differentiated marketing offers. It examines competitors’ costs, prices, and offers. It selects a pricing method, and it selects the final price.
Be sure to include the following in your report:
-Determine your price objective with your justification.
-Determine the demand of your service and how this influences your pricing strategy.
-Estimate your cost elements and discuss how this will influence the price of your service.
-Prepare a competitive price analysis.
-Select your pricing method and determine your final price along with your justification.
Write your responses in a 3- to 4-page Microsoft Word document.