Chapter 18

Review and Applications
1.1 – A manufacturer decides to produce antique-style rolltop desks. They will be charging a low price and plan on a high volume to reduce their risks. Comment.
I think the company should use the price skimming strategy in which they charge a high introductory price coupled with heavy promotion. This strategy is usually used for new products that the target market perceives as having unique advantages. The antique rolltop desk would have unique advantages. It would be a modern computer desk mixed with the antique style. By using the price skimming strategy they can try to attract the consumer that would be willing to buy the product at the higher price. If that doesn’t work the company can always lower the price. If the company starts at a lower price first, then they may not gain market share and fail because it would be considered a cheap product. The company may also face losses from producing a high volume that will not sell.

2.1 – What are the three basic defenses that a seller can use if accused under the Robinson-Patman Act?
*Cost – a company can charge a different price to different customers of the prices represent a manufacturing or quantity discount savings.
*Market conditions – the company can have price variations if they are to meet fluid product or certain market conditions.
*Competition – the company can reduce the price if trying to stay in competition with other companies.

3.5 – How is the “information age” changing the nature of pricing.
With the information age people can now go onto the internet and shop around for the cheapest price on a certain product. Sometimes the company may even lower the price of a product if it is purchased on the internet. If companies aren’t watching their prices compared to the competition on the internet they could be losing out on sales.

5.1 – During a recession, what pricing strategies would you consider using to gain or maintain market share? Explain your answer?
I would use either value-based pricing or the bundling strategy. The value-based pricing would stress to consumers that they are getting a good value for their money on a certain product. It would show that the company has a better price than its competitors. The bundling strategy would stress to consumers that they are getting a better value than a competitor. A company may put together a package that is a better deal then purchasing each item separately.

Websites
Web Stats from ClickTracks
One solution for an entire marketing team.
Useful for running an online marketing campaign,
You can fix deliverability before sending.
There is a team calendar and message board.
You can see what visitors are doing on your site.

Google Analytics
This function can help tell your company how people find your site, how they navigate through it, and how they become customers.
Detailed reports are only a click away and they use segmentation menus.
The company can tell the value in geographic areas and the highest target markets.
The company can also tell how the design and layout of the site affects their bottom line.

Comparison
I found the Google site to be more informative and easier to navigate through. They gave a lot of information and even went into the process of how you can sign up. If I had to choose one of these programs I would definitely choose Google Analytics. It also was easier to understand and they did have helpful hints on how to read and analyze each report.