Pricing - New Product Development Essay Example | Topics and Well Written Essays - 3500 words

Pricing - New Product Development - Essay ExampleAnalysis of design and technical features of the harvest-time are essential part of product development and would be required in price evaluation period. The challenge is to engage with the competitors and meet the market place in effective and deliberate way. In the long run, the aim is to build a relationship with British Petroleum in order to meet the primary objective of market capturing. This will introduce the eco bins in UK market in a good aspect of time and make it available for the new users. In price objective, the company should go with market keenness tactics, which would be achieved by a strong promotional campaign. Setting discount package is a good idea and in-fact a perfect idea to stimulate with. The need would be to meet the competition in the very first phase of the business. 1. Pricing Objective Pricing is the primary drop dead of a business, which associates with the lodge of the functions in a considerable way. It is a process of product development, product enrichment and promotion respectively. In a business organization, pricing is a central function and if it goes on successfully, the rest of the business is with parallel results (Lan 2006). Pricing is the main element of marketing and holds the major role in developing a marketing commingle strategy. ... For a new product to be open uped, it is necessary that the product meet the needs and wants of the customers, this is how new buyers could be attracted, and the product will penetrate in the showtime aspect of time (Kotler and Armstrong 2008). Primary objective would be to penetrate the market and develop all possible tactics to add value to the product. This would require a profitable pricing scheme which can deliver a plan set for achieving the objective. Deploying the starting promotional campaign at every site of launch would be part of the plan. It is necessary that 4Ps of Product, Price, Place and Promotion are in a st epwise order and implicated in the right direction (Moore and Pareek 2010). In the longer run, the secondary objective would be to stabilize the position of the company with a good reputation of available bins for the users. This will take time, but one time a right price is obtained for the eco bins, the longer run objective would be achievable. Developing customer relationship and adding value to the product is part of the plan and should be focused at every step to develop repute for the company. This would require a marketing mix strategy in which customers perception and response are in the consideration. On the parallel side, competitors should also be focused and see how the company can sustain its position in the UK market arena. 2. Pricing decision Setting the right price in terms of value, profitability and customers perception are essential features of a pricing decision (Oxenfeldt 1973). In the start, the aim is to develop a positive customer perception towards such ec o friendly recycling bins, which would be