I don’t know how to handle this Marketing question and need guidance.
Week 5 Discussion 1
“Price Levels” Please respond to the following:
- Select the areas of the price-setting process (define price window, set initial price, and communicate prices to market) that you believe to be the most important. Support your argument with evidence and/or examples.
AND RESPOND TO THESE POSTS:
RE: Week 5 Discussion 1
In my opinion the price window is the most is the most important step of the price setting process. The overall goal is to set profit maximizing prices by capturing the appropriate amount of the differential value in each stage to affect the final price at each stage. The price window is set for every portion and characterized by the roof, the most noteworthy admissible value point, and the floor, the least allowable price point. We start the value setting process by building up the value window for every section and after that, in step two, a contract that window gave important destinations for the portion and potential client reactions to the new costs. So, setting the price range based on the differential value and the relevant cost is vital to the overall goal of maximizing your profit.
RE: Week 5 Discussion 1
If you want to be a good product manager, consider your market window as part of your product strategy. Often companies come up with what they believe to be a fantastic idea for a new product and there is a tremendous push to release it as soon as possible. While a product obviously cannot start recouping its costs until it is available for sale, simply releasing a product into the market is no guarantee that it will sell. There are countless examples of products which have rushed to market and flopped. Whether the product solves any buyer problems and whether those problems are ones which buyers will pay to have solved are much more important factors in determining the product’s likelihood of success. Even for useful and well-designed products, sooner is not always better.
The element of time is an important one in the product’s success and needs to be evaluated along with other valuable criteria. Looking at the market window strategically versus being based on development and project timelines, or based on other internal factors not dictated by the market situation may uncover some opportunities which can improve the product’s likelihood of success, helping ensure cross-functional support for hitting that window. Good product managers use time to their advantage and plan their product development and launch accordingly.