CHAPTER 8, 9 & 10

Original post due by 11:59pm CST, Friday for 30 points. Two reply posts to peers due by 11:59pm CST, Sunday for 5 points each.

For this discussion, lets assume that you are the marketing manager for Lotta Fizz Beverages (fictional company), which oversees an impressive product line of popular beverages in a highly competitive consumer market. You are excited about the challenge of introducing a new product item: Quick Start beverage.

While you are happy to introduce this new beverage option to the market, you are concerned that the needed growth will have to come from a competitors market share, in order not to cannibalize your existing product line sales. Plus, senior management has set the first year metrics of success for Quick Start to be the following: (1) Achieve a 1% market share and (2) to realize a 20% return on investment in the first year. (Both are considered to be aggressive goals as they are above the industry growth rates.).

Answer the questions below. In Chapter 10, you will find the following pricing objectives: Profit, Sales, Market Share, Competitive effect, Customer Satisfaction, or Image Enhancement.

1. Select three of these pricing objectives and write appropriate definitions using examples that help to explain their respective meanings.
2. Choose a final (single) pricing objective from this list that will guide your pricing goals and marketing strategies for Lotta Fizz Beverage. Provide adequate support material that reinforces your recommendation.
3. Select a product objective or concept from Chapter 9 that will support your chosen pricing objective.