Task: 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.
1) What is the product name? Describe the product.
2) Explain how you are segmenting the market. Why did you choose this method of customer segmentation? Be specific.
3) Who is the target market? Be specific - use demographics psychographics (lifestyle), etc. to identify your customers. 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)
4) What are your products' benefits to the target market?
5) At what price will your product be introduced? Why?
6) What pricing strategy are you using? Why?
7) What objectives will be accomplished by using this strategy? Be specific.
8) Why is the product worth this price?
9) Identify and explain what prices you should charge at each stage of the PLC. Why?