mod4week1responses.docx

Response 1

4D Mobile Baby offers prenatal ultrasounds for parents wishing to receive a more personalized, and shared experience during the ultrasound process. This service includes a one-hour scan and several packages options to choose from which can consist of 25 still images, video, and audio of the baby’s heartbeat. The service is conveniently conducted in the client’s home, or venue of choice. The scan can be projected on the customer’s Smart TV, or a company-provided projector can be used for display, available upon request. All equipment to include the table/bed is combined with the service fee and provided by the company.

To ensure the success of the company, the pricing objectives for 4D Baby Mobile to consider should include profit maximization, and sales maximization, as explained by Avlonitis and Indounas (2005). Profit maximization includes achieving established profit and return on investment goals, while sales maximization consists of meeting or exceeding maximum/satisfactory sales targets. Additionally, the company will integrate an objective for long-term survival which will cover the attainment of social goals by reaching the pre-identified target markets.

As 4D Baby Mobile becomes established, the company will utilize a combination of pricing strategies to ensure it is meeting financial goals. The first strategy the company will choose is a demand-based pricing approach as suggested by Avlonitis and Indounas (2005). This method considers the customer’s perception of value of services rendered and ensures the pricing and services meet the customer’s needs and expectations. Since there currently is not a lot of companies offering at-home prenatal ultrasounds, there is not a lot of competition price comparison to consider. The company will need to ensure it does not over price its services or it will turn away potential customers. After establishing the margin of customer demand, the company will utilize a cost-based approach which includes conducting a break-even analysis. This report breaks out all fixed and variable expenses and shows what target figure the company must achieve just to break in expenses and costs. The final strategy the company will incorporate is implementing a target return pricing approach. This method shows what sales target must be met in to meet the company’s return on investment goal.

As the company continues to establish its services, these pricing strategies may be reevaluated to ensure the most beneficial result is achieved.

Reference

Avlonitis, G. J., & Indounas, K. A. (2005). Pricing objectives and pricing methods in the services sector: [1]. The Journal of Services Marketing, 19(1), 47-57. Retrieved from https://www.proquest.com/scholarly-journals/pricing-objectives-methods-services-sector/docview/212619314/se-2?accountid=28844

Response 2

The bridal gown boutique is the company of emphasis and major on designing bridal gowns, specifically a-lines and strapless. The concern is producing and designing brands that will meet customer needs in the wedding industry and make them meet high quality and affordable to individuals on the eve of marriage. In addition, the company’s focus will also extend to offer footwear and accessories in its brand portfolio through its segmentation o clients based on experiencers, believers, and innovators. A competitive edge in the wedding industry can easily be achieved by Bridal gown boutique by understanding potential clientele needs analysis.

Setting a goal is the driving vehicle for success from individual and business perspectives. Since Bridal gown boutique major in designing A-line and Strapless gowns brands, developing pricing objectives remains a critical concern to necessitate its success in the wedding industry. Pricing objectives require an intense understanding and analysis of the market based on timing, company goals, and product market positioning to make pricing decisions (Fuchs, 2021). Some of the pricing objectives to consider in the Bridal gown boutique will focus on profit maximization and retention improvement (Fuchs, 2021). Improving customer retention is one of the pricing objectives the Bridal gown boutique will focus on. This will be actualized by providing customer loyalty initiatives that will enhance their satisfaction level. Maximization of company profit is the second pricing objective that Bridal gown boutique will embrace. Since entities can’t survive in the current competitive market without making money, Bridal gown boutique is not an exception. Therefore, it has to increase its price and lower cost to remain viable.

Based on profit maximization and customer retention pricing objectives, the most effective choice for the Bridal gown boutique is customer retention. This is because customers are the critical asset that companies need to focus on since they have to produce brands that meet their needs and expectations to win their loyalty. Therefore, maximizing customer retention is the focal point for business success. Companies need to price their brands high to imply high quality, but also, they should price reasonably low to retain customers (Campbell, 2019). After customers have been satisfied with company brands, they will buy more from such a company which will reciprocate to increase profit margin and return on investment.

References

Campbell, P. (2019). Pricing Objectives & How to Choose The Best For Growth. Retrieved from https://www.profitwell.com/recur/all/pricing-objectives.

Fuchs, J. (2021). Pricing Objectives: What They Are and Why You Need One. Retrieved from https://blog.hubspot.com/sales/pricing-objectives.