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LP5 Assignment LP5 Assignment: Pricing Decisions This assignment will assess competency 4. Develop a professional sales training and motivation program for an organization. Directions View the Chapter...

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LP5 Assignment

LP5 Assignment: Pricing Decisions

This assignment will assess competency 4. Develop a professional sales training and motivation program for an organization.

Directions

View the Chapter 19 – Pricing Concepts video.

Ski Butternut is a ski mountain in the Berkshires dedicated to offering a great family ski value. In this video, Matt Sawyer discusses the various ways that Ski Butternut uses pricing to drive new business and local business to the mountain. He also discusses how correct pricing, with input from a seasoned and motivated sales team, can help the next year’s business model through the development of a professional sales training program.

After viewing this company's video, write an XXXXXXXXXXword paper that addresses the following questions:

  1. How do the product, place, and promotion elements of Ski Butternut’s marketing mix influence the pricing strategy the company has chosen?
  2. Would you expect demand for Ski Butternut lift tickets to be elastic? Why or why not?
  3. What role do the product life cycle, competition, and perceptions of quality play in Ski Butternut’s pricing?

Submit this assignment to your instructor via the dropbox LP5 Assignment: Pricing Decisions. This assignment is worth 110 points; grading will be based on the LP5 Assignment Rubric.

Answered Same Day Dec 05, 2019

Solution

David answered on Dec 25 2019
149 Votes
Ski Butternut Pricing Strategy Analysis And Report
How do the product, place, and promotion elements of Ski Butternut’s marketing mix influence the pricing strategy the company has chosen?
The product
The objectives of the Ski Butternut are to promote reference marketing, viral marketing and attract more customers. For this purpose, company has chosen groups of fire fighters, EMTs, police and their family groups who it believes promotes reference marketing and viral marketing. Customers look for great value and therefore the pricing strategy is fixed at 75 dollars for every person that visits first time. Second time it is increased to 100 dollars. Company has also offered free lift tickets for first time school kids from class five. There is 20 dollar lift ticket and a season pass that is availed on 275 dollars. To attract customers company has dropped prices from 495 dollars to 199 dollars. This has been done by considering that people may visit at least five times in a season and they will reach to
eakeven point. Company has charged a premium of five dollar during holiday season. Also it has a great program that is 25 dollars for the midweek when the business is low and there is no holiday. Company has offered free passes to ski shop and their employer to promote the business.
The analysis reveals that company has wisely segmented the market and provides cost effective options for those groups that look for great values. The product for first time visitor is set about 75 dollars and this is to promote ski practices among learners. A 25 dollar discount offered to them and it is a promotional package that is well suited. The product element consists of different pricing structure for different groups. This is based on the demographic profiles and psychographic profiles.
One pricing strategy is quite visible and that is...
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