Student name
Instructor
Course
Date
Mastering Marketing
The video is provided to supplement classes in ‘Mastering Marketing.’ The video focuses on marketing strategies and pricing strategies. Marketing strategies refer to the efforts engaged in by a company to drive up sales. From the video, we see the general rule where a decrease in price results in an increase in demand.[1] The exception to this rule is the prestige products where demand decreases if the price is significantly decreased. Pricing elasticity is also discussed where elastic products are defined as those whose demand is affected by the price, while price changes do not affect the demand for inelastic products.[2] An example of products with inelastic prices is fuel and life-saving medicines. The breakeven point is also discussed where the production costs must be covered before profits can be generated. This point allows sellers to know how to price units to cover expenses and make a profit.[3]
The video discusses various forms of marketing strategies with a focus on price lining. The video discusses the demand-oriented pricing approaches, including cost-plus pricing, which is the most common, trial pricing, odd-even pricing, skimming, penetration pricing, prestige pricing, target pricing, bundle pricing, yield management, and price lining.[4] The price lining strategy refers to a pricing strategy that sets products at different price points. The higher the price, the higher the quality of the product.[5] The strategy is efficient when coupled with price decoys. Price decoys are products that are overly priced in comparison to two other products. The two highest-priced products are closely linked in the description of quality compared to the third cheapest product. The goal of price decoys in price lining is to promote the second most expensive product, not the price decoy.[6] The video provides an analogy of the sale of suits on the Brooks Brothers websites and links it to the survey conducted at the beginning of the video.
Works Cited