Assume you are the marketing manager for a local cable company. You have some direct competitors including AT&T U-verse and the Dish Network. Using the six steps for setting a pricing policy (i.e 1) developing pricing objectives, (2) assessing the target market’s evaluation of price, (3) evaluating competitors’ prices, (4) choosing a basis for pricing, (5) selecting a pricing strategy, and (6) determining a specific price) prepare a report for your Vice President on your suggested pricing strategy for your service.
Be sure to include the following in your report:
Determine your price objective with your justification.
Determine the demand of your service and how this influences your pricing strategy.
Estimate your cost elements and analyze how this will influence the price of your service.
Propose a competitive price analysis.
Select your pricing method and determine your final price along with your justification.
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