Marketing In Class Assignment

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Lambton College *

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6113

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Marketing

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Feb 20, 2024

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Application Of Marketing Concepts Course Code :-MKT 6113 – F23 Programme: - Financial Planning and Wealth Management Topic:- In Class Assignment #4 Instructor: Prashast Singh Submitted By:- C0904859 Prateek Shukla Financial Planning and Wealth Management

A videographer specializing in weddings currently charges $2,000 to shoot a wedding. She has been shooting weddings for over twenty years and has now booked some well-known clientele. Which two pricing strategies would be most strategic for this videographer and why? What other pricing recommendations would you make to this videographer? There are two possible strategic pricing approaches for a wedding videographer with a recognizable clientele: Prestige Pricing: Using a premium price to communicate exclusivity and superiority is the goal of this tactic. The videographer's ability to collect a premium price, coupled with her high-profile clientele and experience, serves to affirm the perceived superiority of her work. Bundle Pricing: Because the videographer is so experienced, she may combine her services with other products and services, such as drone footage or engagement photo shoots, for a discounted fee. Clients may be encouraged to select comprehensive services as a result, boosting overall income. Some more suggestions for pricing: To accommodate varying client budgets, provide tiers of pricing packages. To attract more customers, think about offering seasonal or promotional discounts. Recommend and prepare a pricing strategy for a videographer that aligns with her pricing objectives (assume/suggest these objectives) and considers relevant costs, demand, and revenues. We must first presume or propose the videographer's pricing goals before making a pricing recommendation. We can take into consideration a tiered pricing plan if her goals are to enhance revenue, maintain a premium, high-quality image, and serve clients with different budgets. To illustrate: Basic Package: This package comes with all the necessary services, like basic editing and ceremony filming. At a cost of $2,500. Financial Planning and Wealth Management

Standard Package: The ceremony, reception, and moderately sophisticated editing are all included in this package. $3,500 is the price. Premium Package: Including extensive coverage, sophisticated editing, and a highlight reel. $5,000 is the price. The videographer can meet the varying needs and budgets of clients while upholding a high-end image by providing these packages. Make certain that the pricing optimizes revenues while covering pertinent costs. Discuss the value of break-even analysis and conduct break-even calculations for the videographer wedding shot. A business can use break-even analysis to ascertain the point at which total costs and revenues equal one another and there is no profit or loss. We can use some procedures to perform a break-even analysis for the videographer: A- Determine the total fixed costs, such as those for rent, insurance, and equipment. B- Calculate the variable costs associated with each wedding (labor, travel expenses, etc.). C- Set the price for the wedding service. D- Apply the Break-Even Formula: Total Fixed Costs / (Price per Wedding - Variable Cost per Wedding) = Break-Even Point (in number of weddings). To turn a profit, the videographer should try to go above her break-even threshold. Sam has created a clothing line that sells at a local boutique. Short-sleeved shirts are $40, sweaters are $60, hats are $20, and accessories such as socks are $15. Give Sam two psychological strategies to use to improve his pricing and hopefully increase product sales. Explain your answer. Two thought-provoking techniques for Sam to contemplate: Charm pricing refers to setting prices slightly below round numbers, like $39.99 rather than $40, since it is thought by customers to be a better deal. Offering a more expensive item (such as a designer sweater) to make the other items (socks, hats, and shirts) appear more reasonably priced in contrast is known as price anchoring. Financial Planning and Wealth Management

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Now assume that Sam’s shirts sell for $400, his sweaters for $600, his socks for $150, and his hats for $200. Would your pricing strategy recommendations change any? Why or why not? Sam's shirts, sweaters, socks, and hats could be substantially more expensive ($400, $600, $150, $200), which would alter the suggested pricing plan. Sam should emphasize value and exclusivity in this situation, ensuring that the high prices are commensurate with the product's quality and branding. Define price elasticity of demand for Sam’s store for two scenarios above. How it affect Sam’s pricing strategy? The quantity demanded's sensitivity to price changes is measured by price elasticity of demand. It is computed as follows: Price Elasticity is calculated as (% Change in Demanded Quantity) / (% Change in Price). Sam's clothing line might have had relatively inelastic demand for the initial prices because people might view his products as more distinctive and essential. On the other hand, since consumers are probably going to be more price conscious, demand might become more elastic if he raises prices dramatically. Sam needs to keep an eye on price elasticity and modify his pricing plan as necessary. References: https://zapier.com/blog/pricing-strategy/ https://www.podium.com/article/pricing-strategy/ Financial Planning and Wealth Management

Marketing In Class Assignment

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