Marketing Plan Phase II Essay Example | Topics and Well Written Essays - 500 words

Marketing Plan kind II - Essay ExamplePricing should not be interpretn in isolation of the other factors that soak up a bearing and often influence the decision itself. Predominantly price is part of a price-quality equation.The more or less important consideration in price decisions is its objectives. And objectives atomic number 18 in turn based on the dodging of ware positioning. Commonly companies try to achieve any of five objectives through pricing survival, increase profit, maximize market share, skim the market or product-quality leadership. (Kotler, 2001, p. 458)The business of businesses is business Friedman (as cited in Pohl, Eva, 1970, p.12). So understandably businesses outlast to maximize profits. This then brings up for consideration the price-demand-profit relationship.This in other words is the demand for a product at different prices which is the products price sensitivity. Price sensitivity is a measure of how important lower prices are to the customer (Da y, 1999, p. 114).In general products are less price sensitive if buyers are less aware(predicate) of substitutes, when a one-on-one comparison between competing products is not possible and when a product is perceived to feel quality and exclusivity.Bread is such routine fare. As such it is highly price sensitive. But Paneras customers dont see the companys products as just any bread. There is a definite value perception.