MKT 3301-20.01.01-3A25-S1, Principles of Marketing Unit VII Assignment Marketing Plan: Part II In this unit, you will continue to build upon your marketing plan for an existing company and a produ
2 Product Strategy Company and Product Description The marketing plan that is outlined in the proposed plan is for the company known as EcoTech Innovations, which is a mid-sized firm. The product under analysis is the EcoCharge Solar Backpack, which is a specially designed-backpack with efficient solar panels and a rechargeable battery unit. This product enables the charging of electronics when on the move, thus meeting the needs of individuals with an interest in sustainability, those who engage in outdoor activities, and business professionals who need portable power. The practical and sustainable design of the EcoCharge Solar Backpack fits into the lifestyle of embracing Green technology and durability of Abbas, 2024.Product Classification The EcoCharge Solar Backpack is a type of consumer product intended for individual usage, providing portability and practical use. This makes it durable since it is built to last for an extended period and is resistant to environmental impacts. Furthermore, this product demands high consumer engagement because of its higher price tag and the necessity of making the buyer assess its suitability for their needs and daily use.
Product Life Cycle Stage This product is in the introduction stage of its life cycle. Being a new product, there is a significant need for marketing the product as the customers have not yet become aware of the existence of the EcoCharge Solar Backpack and how it can benefit them in charging their devices while trekking. To create its market presence, specific marketing techniques and the targeting of early adopter consumers will be necessary (Penty, 2019).
Pricing Strategy Pricing Goals 3 The main pricing strategy for the EcoCharge Solar Backpack is a penetration price strategy that seeks to offer an affordable price suitable for early market entrants and the growth of market share. At the same time, the company also aims to maximize its profit by ensuring that the prices for the products are both reasonable and profitable (Escarraman, 2022).
Key Determinants of Price It is important to point out that several factors affect the pricing strategy. First, costs for the production such as raw materials, the process of manufacturing, and incorporating technology into the production process will be factored in when determining the prices of the products. Second, the demand side, specifically the environmentally conscious customers, dictates their ability to pay for creative products that also protect the environment. Lastly, the scope also involves comparing the price of the goods with other similar products in the market known as competition (Abbas, 2024).
Comparison of Pricing Methods Three pricing methods were considered: They include cost-plus pricing, value-based pricing, and competitive pricing. Cost-plus pricing involves adding a standard margin to the cost of production to arrive at the final price with the expectation of making some profit.
Value pricing considers the importance of the product quality, relevance, and price that the buyer is willing to pay based on the customer's perception of value. Pricing competition maintains the product price to a level similar to those of other products in the market to achieve competitiveness. Out of all these strategies, the method chosen was Value-Based Pricing as it best focuses on the unique selling points of the product and targets consumers who are willing to use eco-friendly portable charging technology (Frank, 2021; Napoles, 2021).
Price Adjustment Strategies 4 To arrive at the base price that will serve as a foundation for the final pricing model, the following strategies will be applied: To offer financial incentives for the customers to make the very first purchase and acquire the product, there would be a promotional price, which may be lower than the actual price, or combo offers that include other EcoTech products. Variable pricing will involve setting prices by taking into consideration geographical factors and changes in production costs within a certain region. Last but not least, segmented pricing will be used to target differentiated groups of customers, for instance, students or corporate customers, and provide them with different prices depending on their category. Such changes help to keep the product affordable for various categories of consumers while remaining profitable (Penty, 2019).
Conclusion Through integrating innovation and sustainability, the EcoCharge Solar Backpack is certainly a product in a competitive segment. Therefore, by utilizing the value-based approach to price setting and applying the principles of price controls, the company can adequately address both the needs of its target market and its profitability. The integrated plan serves as a strong starting point for product promotion and continued market development.
Moreover, the company's strategic goal of implementing environmentally friendly solutions is also relevant to the ongoing consumer shift towards more sustainable products. EcoTech Innovations has a clear strategic plan regarding the company's prices and product positioning to appeal to customers, especially those who care for the environment. 5 References Abbas, M. (2024). Integrating Knowledge Management into Marketing for Enhanced Decision-Making and Performance. Advances in Business & Industrial Marketing Research, 2 (2), 72–82.
Escarraman , C. (2022). Best marketing practices for small online internationalizing companies in Finland 2022.
Lamb, C. W., Hair, J. F., McDaniel, C., Boivin, M., Gaudet, D., & Snow, K. (2021). MKTG. Cengage Canada.
Penty, J. (2019). Product Design and Sustainability: Strategies, tools, and practice. Routledge.
