Pricing - New Product Development Essay Example | Topics and Well Written Essays - 3500 words

Pricing - New Product Development - Essay Example Analysis of design and technical features of the product are essential part of product development and would be required in price evaluation period. The challenge is to engage with the competitors and meet the market in effective and deliberate way. In the longer run, the aim is to build a relationship with British Petroleum in order to meet the primary objective of market capturing. This will introduce the eco bins in UK market in a good aspect of time and make it available for the new users. In pricing objective, the company should go with market penetration tactics, which would be achieved by a strong promotional campaign. Setting discount package is a good idea and in-fact a perfect idea to begin with. The need would be to meet the competition in the very first phase of the business. 1. Pricing Objective Pricing is the primary function of a business, which associates with the rest of the functions in a considerable way. It is a process of product development, product enrichment a nd promotion respectively. In a business organization, pricing is a central function and if it goes on successfully, the rest of the business is with parallel results (Lan 2006). Pricing is the main element of marketing and holds the major role in developing a marketing mix strategy. ... For a new product to be launched, it is necessary that the product meet the needs and wants of the customers, this is how new buyers could be attracted, and the product will penetrate in the starting aspect of time (Kotler and Armstrong 2008). Primary objective would be to penetrate the market and develop all possible tactics to add value to the product. This would require a profitable pricing scheme which can deliver a plan set for achieving the objective. Deploying the starting promotional campaign at every site of launch would be part of the plan. It is necessary that 4Ps of Product, Price, Place and Promotion are in a stepwise order and implicated in the right direction (Moore and Pareek 2010). In the longer run, the secondary objective would be to stabilize the position of the company with a good reputation of available bins for the users. This will take time, but once a right price is obtained for the eco bins, the longer run objective would be achievable. Developing customer r elationship and adding value to the product is part of the plan and should be focused at every step to develop repute for the company. This would require a marketing mix strategy in which customer’s perception and response are in the consideration. On the parallel side, competitors should also be focused and see how the company can sustain its position in the UK market arena. 2. Pricing decision Setting the right price in terms of value, profitability and customer’s perception are essential features of a pricing decision (Oxenfeldt 1973). In the start, the aim is to develop a positive customer perception towards such eco friendly recycling bins, which would be