Marketing Plan: Phase III - Essay Example

Marketing Plan: Phase III; Price Strategy Setting the appropriate prices for services and goods can be difficult. This is because the marketer does not know how much the consumers are willing to pay for the products (Ferrell & Hartline, 2011). Despite Wal-Mart’s daycare service for customers and employee’s children while their parents are shopping or working in the store being a new and unique service that offers significant benefit to the parents and workers, Wal-Mart will offer it at no charges.

Though this will be extremely costly to the organization, Ferrell and Hartline (2010) denote that the service will gain widespread market acceptance and capture a large market share. Arguably, Wal-Mart’s day care services are not accessible anywhere else, and clients will place a high value upon it. Therefore, the service will gain mass appeal quite fairly.Some of the unique features of this service such as availability of a day care provider to every three children, provision of a free beeper to every parent for security purposes, and provision of snacks will also assist the service in gaining market acceptance.

In addition, the numbers of children who can access the services at a time are fifteen, making the experience exceptional.Offering the services at no cost will play an imperative role in driving away any potential competitor in the market. As a result, the organization can later increase the prices to cater for the costs involved in delivery (Ferrell & Hartline, 2010). However, Wal-Mart will need to have a cost structure that can withstand the strategy (Ferrell & Hartline, 2011).ReferencesFerrell, O. C., & Hartline, M. D. (2011).

Marketing strategy. Mason, OH: South-Western Cengage Learning.