Write an analysis of place and price (the second and third "Ps" of the marketing mix) for a selected product. There is no page limit for this assessment. Selecting the best methodology for getting a p

Context

In contemporary marketing, timeliness is critical, given the intense competition in most markets. Many successful companies have moved to a direct sales model in order to maintain greater control and better profit margins. Selection of non-direct distribution outlets carries the sales responsibility to the retail level, as outlets provide the primary interface with each customer. For some products, distribution is now friction free(friction being the lag between demand and supply). For certain kinds of software and other digital modalities (including music), delivery can be as simple as a download to your PC: no shortage of supply and no waiting.

Often, superior marketing efforts are the sole support for a higher price. The key rule in pricing is to set a price point at which your target customers will buy. If you cannot make a profit at that point, then perhaps you do not need to be in that business.

As complex as pricing decisions can be, many organizations rely on three basic methodologies:

1. Cost-based pricing, which takes the basic costs of the product or service and adds an acceptable profit margin.

2. Value-based pricing, which attempts to set a price or value for the product to either solve a problem or save time and money.

3. Competition-based pricing, which simply follows along with what the market price is on similar products.

Questions to consider

To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.

• Supply chain management is an important part of a company's distribution strategy. After reading the suggested articles in the Resources regarding REI, consider REI's current channel and methods of distribution. How does REI use supply chain management? Does this method work well? How might it be improved?

Suggested Resources

The following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.

Library Resources

The following e-books or articles from the Capella University Library are linked directly in this course.

• Ruskin-Brown, I. (2006). Mastering marketing (2nd ed.). London, GBR: Thorogood Publishing.

• McDonald, M., & Wilson, H. (2011). Marketing plans: How to prepare them, how to use them (7th ed.). Hoboken, NJ: Wiley.

• Kermally, S. (2004). Gurus on marketing. London, GBR: Thorogood Publishing.

SHOW LESS

Course Library Guide

A Capella University library guide has been created specifically for your use in this course. You are encouraged to refer to the resources in the BUS-FP3030 – Fundamentals of Marketing and Sales Library Guide to help direct your research.

Internet Resources

Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.

• Business Wire, Inc. (2001, June 19). REI announces strategic business changes [Press release]. Retrieved from https://advance-lexis-com.library.capella.edu/api/permalink/b262374e-0be2-4d25-8176-6ab177c49e52/?context=1516831

• Business Wire, Inc. (2001, March 27). REI commits to youth with $100,000 award [Press release]. Retrieved from http://library.capella.edu/login?qurl=https%3A%2F%2Fsearch.proquest.com%2Fdocview%2F445848388%3Faccountid%3D27965

• Marketing Power, Inc. (2013). American Marketing Association. Retrieved from http://www.marketingpower.com/Pages/default.aspx

• Hoover's, Inc. (2013). Hoovers. Retrieved from http://www.hoovers.com

• The Ad Age Group. (2014). AdvertisingAge. Retrieved from http://adage.com

• Direct Marketing Association. (2013). DMA: Advancing and protecting responsible data-driven marketing. Retrieved from http://thedma.org

• Concept Marketing Group Inc. (2013). Concept Marketing Group. Retrieved from http://www.marketingsource.com

Books

• Lamb, C. W., Hair, J. F., & McDaniel, C. (2019). MKTG 12 (12th ed.). Boston, MA: Cengage Learning. Available in the courseroom via the VitalSource Bookshelf link. 

• Ries, A., & Trout, J. (1994). The 22 immutable laws of marketing. New York, NY: Harper Business. Available in the courseroom via the VitalSource Bookshelf link.

Instructions

For this assessment, consider that you work as a marketing analyst for a consulting firm. You were previously asked to develop an analysis white paper to be used for marketing purposes to showcase the firm’s consulting capabilities, and your manager and the firm’s marketing team was impressed with your work. As a result, your manager asked you to create another analysis white paper to also be used for marketing purposes, with a goal of highlighting the firm’s consulting capabilities for each of the “four Ps” of product, place, price, and promotion.

Analyze the place and price for a product. You can use the same product you used for the previous assessment, or you can choose another organization or product.

Place Analysis

• Analyze distribution channels (how does the organization get the product to market), and assess strengths and potential weaknesses.

• Analyze where the product is being sold and the approach to inventory, and assess strengths and potential weaknesses of the place of sale.

• Analyze the relationship between the company's place strategies for the product and the company's economic success and propose potential changes in the place strategies that could improve the company’s economic success.

• Describe potential management challenges related to recommended changes to the company's place strategies, and assess how those challenges might be addressed.

Price Analysis

• Analyze the characteristics of a product’s pricing system, including if it is cost-based, value-based, or competition-based. How did you come to your determination? Assess strengths and weaknesses of the pricing system.

• Analyze the relationship between the company's price strategies for the product and the company's economic success. Propose potential changes in the price strategies that could improve the company’s economic success.

• Describe potential management challenges related to recommended changes to the company's price strategies, and assess how those challenges might be addressed.

Based on your executive audience, your case study should be well organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.

Academic Integrity and APA Formatting

As a reminder related to using APA rules to ensure academic honesty:

1. When using a direct quote (using exact or nearly exact wording), you must enclose the quoted wording in quotation marks, immediately followed by an in-text citation. The source must then be listed in your references page.

2. When paraphrasing (using your own words to describe a non-original idea), the paraphrased idea must be immediately followed by an in-text citation and the source must be listed in your references page.