If you are working as a marketing manager in a multinational mobilemanufacturing company and your company wants to introduce a new brand ofmobile. What factors you will consider while setting your pricing strategy?Discuss any three factors which may affect your price-decision?
Solution:-
Being marketing manager for mobile company, the factors which I will consider forpricing will be costs, competition and organizational considerations.Further, Three factors which may affect my price decision will be as follows:
a) Costs:Costs have to be calculated backwards from the target price which theconsumer is ready to pay for the proposed mobile. Therefore, cost is definitelya consideration when the product has to be priced to meet the desired target aswe cannot put the target price which cannot cover the costs at minimum.
b) Competition:Growing number of mobile manufacturers around the world areposting a threat. Therefore to survive, one has to be competitive both inpricing as well as in product offered. These days, high priced mobiles are nolonger a privilege for customer.
c) Organizational considerations:Growing competition is now forcing thecompany to keep some room open for further negotiations and specialpackages that can be offered. For example these days, we may offer mobilephones with free mobile connections by making liaison with mobileconnection providers. This act will give both of us a new customer. Their costfor a SIM card will be minimum but they will have the revenue generated from the usage of their connection. We will be able to sell our product with anadditional item i.e. the SIM card which if purchased separately will have itsown cost to be borne by consumer.
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