Unit 8 Discussion,
Topic: Pricing Strategy
ASG wants to launch gloves with warming sensors for the current target markets. Do some research on the Internet regarding competition in the market for these gloves.
How will you address the stages of the consumer adoption process on p.4547?
Using your competitive pricing from the text in Chapter 16, decide on a competitive price for ASG’s product solely based on the competition and quality of the ASG product.
What, if any, discounts should the company provide in order to induce initial sales of the product?
What other channel alternatives for these gloves should ASG consider, based on Chapter 17? Explain.
Unit 8 Discussion
Pricing Strategy
Research based on gloves with warming sensors
The modern world is now on the verge of technological sophistication. Based on this philosophy, Adaptive Sports Global (ASG) Corporation has decided to release gloves that can be heated with electrical energy through the use of batteries. There are different kinds of organizations that provide heated gloves are Ororo Calgary Heated Gloves, Savior Heated Gloves, Outdoor Research Gripper GORE-TEX INFINIUM Heated Sensor Gloves, etc. ASG has to make formulations that can be renewable and sustainable (Rd.com, 2021). For this purpose, ASG has released gloves that can be heated by chargeable batteries. It has provided the product classification by ASG in a benevolent way.
Stages of the consumer adoption process
Through the use of general ideas, it can be understood that the consumer adoption process is the methodology through which customers can be made reliable towards the products and services. In this dynamic, the needs of customers are given as the first entry based on the business dynamics of the organization. The consumer adaptation process can be considered as the process of commercialization. The use of collaboration with the common segmented customers provides parallel entry. Entry into the market after marketing research and studies is considered a late entry. In this case, timing is the significant factor. It has three considerations and these are first entry, parallel entry, and late entry. ASG can use the five steps of the consumer adoption process (Iedunote.com, 2021). These are awareness, interest, evaluation, trial, and adaptation. ASG can align the consumer adaptation process with commercialization. Through the use of awareness, the knowledge about the products will be circulated to the customers. The interest in the value of the products will be transferred to the customers. Through the use of evaluation, the simplification of the product is executed. Through the use of trial, the examination of the product quality is been conducted. Through adoption, the customers are satisfied with the products. It can provide better marketing enhancement with proper profitability (Keller & Kotler, 2015, p.454).
Competitive Pricing
Competitive pricing is the process through which an organization can provide the best marketing enhancement. The competitive pricing that ASG is going to use is premium pricing. Premium pricing provides the classification of existing and new customers. It also provides product classification. It also provides expense regulations. ASG can provide prices that can attract upper-class and upper-middle-class customers. It is also based on the regulation of financial expenses based on the balance of business dynamics. The pricing that is required to be formulated has to be based on the demands and potentials of the customers. Price is directly proportional to the revenue. Through the use of stabilized pricing, the organization has enhanced in competitive advantage. Enhancements of suitable prices can help to balance the marketing mechanics of the organization (Keller & Kotler, 2015, p.460).
Use of discounts
I think that discounts can be facilitated by ASG to existing customers to increase financial stability. It is required to be followed by the circulation of discounts to non-existing customers with relevance.
Alternative channel
The use of collaborative ways can help an organization to make the efficient circulation of products and services. It provides collaboration with competitors. Through this ASG can increase its profit balance and it has to be circulated with uniformity. ASG has to circulate its new products based on successful value creation. It is required to be facilitated with the use of the advertisement of e-commerce ((Keller & Kotler, 2015, p.462).
References
Rd.com (2021) 10 Best Heated Gloves for Toasty Warm Hands in Even the Coldest Temps, Retrieved from: https://www.rd.com/list/heated-gloves/ [Retrieved on: 16 December 2021]
Iedunote.com (2021) 5 Stages of Consumer Adoption Process (Buyer Decision Process for New Products), Retrieved from:https://www.iedunote.com/consumer-adoption-process [Retrieved on: 16 December, 2021]
Keller, K. L., & Kotler, P. (2015). Marketing Management (15th Edition). Pearson Education (US). https://purdueuniversityglobal.vitalsource.com/books/9780133856606
