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Marketing plan - Essay Example

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Answer to Question 1 Pizza Restaurant’s products are targeted to a rich clientele. Therefore the concept of price elasticity of demand is not applicable. The company is located in a rich city where there are many large industries and the customers have high income…
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Marketing plan

Download file to see previous pages... Since the customers go to Pizza Restaurant for quality, changes in prices are not that important to them. Therefore the price elasticity of demand is not important in this case. Demand for the products and services would be influenced to the minimal extent by price. The company is located in a rich city where the customers are richer than the customers in other parts of the country. Therefore the most influential demand factors are lifestyles and cultural considerations (Kotler and Keller, 2006, p. 65). The demand would be more influenced by price if the customers came to the company to get lower prices. However they purchase the products and services because the products and services deliver quality of taste. 60% of the customers are from rich families who will be more concerned about the quality. Therefore demand in this case will not be affected by price to any great extent. Answer to Question 2 The unique selling proposition is the quality of products and services. Therefore the recommended pricing strategy is premium pricing. This will ensure favorable perception among the customers (Armstrong and Kotler, 2005, p. 34). In this case, it is recommended that the management should maintain high prices in order to maintain the brand reputation which is the source of its unique selling proposition. ...Download file to see next pagesRead More
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