Marketing Plan 13 Question 1

MarketingPlan 13

Question1

Thereare seven pricing objectives, which include survival, profit, returnon investment, market share, cash flow, status quo, and productquality objectives. The survival objective can be achieved throughadjusting price levels that make a firm increase sales volume thatmatch organizational expenses. Profit objective is achieved byidentifying price and cost levels, which permit a firm to maximizeprofit. Return on investment objective is attained by identifyingprice levels, which make a firm yield targeted ROI. Market shareobjective is attained through adjusting price levels that make a firmmaintain or increase sales relative to sales of competitors. Cashflow objective is attained by setting price levels that encouragerapid sales. Status quo objective is achieved by identifying pricelevels, which aid in stabilizing demand and sales. On the other hand,product quality objective is achieved through setting prices thatrecover research and development costs and establishing a highquality image. Market share objective best suits the Nike soccershoes since the product is already established and will compete withother brands.

Question2

Fromthe different pricing strategies, promotional pricing strategy is thebest for the Nike soccer shoes. This is because the strategy mayencourage unwilling or hesitant customers to purchase the product.This pricing strategy can be employed severally in selling the Nikesoccer shoes. For instance, the shoes can be sold through usingspecial-event pricing or comparison discounting.

Question3

Thebasis for pricing the Nike soccer shoes is competition. There aredifferent competitors selling soccer shoes, but a competitive pricewould help in capturing the market share. The best time for revisingthe pricing strategy would be when the pricing strategy does not workanymore or ceases to work for the benefit of the organizationproducing the Nike soccer shoes.