Marketing Module 5 SLP of the of the Marketing Module 5 SLP Introduction Price, placement, product and promotion- of these four elements, price is definitely one of the most challenging and nerve-wrecking. The truth is that the price at which a particular product or service is being offered signifies many things to people. It can signify cheapness or quality, crudeness or sophistication, a product within everybody’s reach or only for the select few. Price must also be determined depending on the nature of the product or service and the prices of competitors.
In fact there are quite a number of pricing strategies which we will address in the rest of the paper. Discussion In Module 1 it was suggested that Wal-Mart should either introduce designer suits or automobiles under their own brand name. Ultimately it was decided that a car would be a better choice. The car would be aimed at the young adults market, with college and university students and people starting off in their first jobs or starting new families being the target segments for this product. The car’s main marketability was its contemporary, stylish look and ergonomic feel, with a durable engine and fuel efficiency.
Because of its smaller size, it was easily maneuverable on busy roads especially if there was a traffic jam. Pricing strategies can be premium, good value, economy or even false economy (Kotler & Keller, 2008) as in loss leader pricing schemes that we still see from time to time-like on Black Friday. Keeping in mind Wal-Mart’s main principle of giving customers good value for their money, the car was priced in the mid-range, lower than American and foreign made models in the market, like Chrysler, Ford, Toyota and Hyundai.
It was suggested to attract the buyers by offering the car at an affordable price in the market, so that it was in the reach of the middle class consumer, as well as giving dealers the opportunity for discounts to customers. I would advise the company to advertise on television and on the internet, especially on social media sites, job search sites, real estate sites and clothing sites, as these would be frequently browsed by the target customers.
Specials could be announced on festive occasions like Wal-Mart’s anniversary, Sam Walton’s birthday and the Christmas and Easter holiday season (Evans & Berman, 2007). Care should be taken not to reduce the car’s image to a cheap model but instead promote it as a model that spells VALUE. This strategy makes sense in present day America where many are still struggling to make ends meet. The car would be available at all Wal-Mart outlets (including financing and insurance through banks and insurance providers) so that it can be picked up and driven off from here as well as a dealer store.
Wal-Mart just needs to arrange dealerships with local car sellers and also make room for insurance and financing booths at its outlets. This is something that Wal-Mart has never done before so it would be an experiment that increases its reach and expands its outlook, also changing customer perceptions of this giant supermarket store enterprise. References Evans, J. & Berman, B. (2007). Marketing in the 21st Century, 10th ed. Atomic Dog Publications. Kotler, P. & Keller, K. (2008).
Marketing Management, 13th ed. Prentice Hall.