As a marketing manager, you are asked by the company leadership to formulate the right pricing strategy for the company's two TV broadcast programs, namely: (1) Hi-tech(H) program which contains engineering, science and technology; and (2) the Wildlife(W) program which contains adventure, vacation, and flora-fauna. There are at least 2 customer groups targeted by the program: (a) Geeks, and (b) Regular. For each group, the number of customers and their WTP values are presented in the table below. Groups Number of Customers Hi-tech Wildlife Geeks 3000 15 4 Regular 10000 3 8 Assuming that the production cost for the two programs is 0, then: a. Mention 3 pricing strategies that can be applied. b. Calculate the price level and profit earned by each strategy. c. As a manager, which pricing strategy did you choose? State why.
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
As a marketing manager, you are asked by the company leadership to formulate the right pricing strategy for the company's two TV broadcast programs, namely: (1) Hi-tech(H) program which contains engineering, science and technology; and (2) the Wildlife(W) program which contains adventure, vacation, and flora-fauna.
There are at least 2 customer groups targeted by the program: (a) Geeks, and (b) Regular. For each group, the number of customers and their WTP values are presented in the table below.
| Groups | Number of Customers | Hi-tech | Wildlife |
| Geeks | 3000 | 15 | 4 |
| Regular | 10000 | 3 | 8 |
Assuming that the production cost for the two programs is 0, then:
a. Mention 3 pricing strategies that can be applied.
b. Calculate the price level and profit earned by each strategy.
c. As a manager, which pricing strategy did you choose? State why.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
