Explaining Pricing Strategy for a Hotel, Apple, Historical Site, and a Perfume Marketer, Buyer Decis

Pricing Strategy for a Hotel, Apple, Historical Site, and a Perfume Marketer

In each of the instances that follow, explain why the firm is pricing its offering in the manner described. If you need to make assumptions, you should state these.
a. A hotel is used by rich golfers because it is close to an excellent golf course. The rooms cost $200 a night. The hotel finds that there are some periods of the year when it has a significant number of empty rooms. The hotel offers a holiday package for $200 a night per room which includes free tickets to the local children’s amusement park, these are worth $100 per day. The rooms are of such size that they can accommodate two adults and two children of ages suitable for visiting the amusement park.

b. Apple has introduced a scheme whereby existing owners of its mobile telphones (called iPhones) can return their phones and in exchange they can buy a new iPhone at a reduced price.
c. A site of historical significance in a developing (low income) country ha tickets for the locals priced at 1/5 of the price charged to foreign tourists, the local visitors have to show an I.D. card in order to gain admission.
d. A perfume marketer incurs costs of $10 making and marketing each bottle of perfume. The firm decides to price each bottle at $100.
a. Using Rogers’ adoption of innovation model discuss the potential for the success of electric cars in the region of the world where you live.
b. Explain how the marketers of these cars can improve the potential success of their offerings using the elements of the marketing mix.
a. Identify and list the five stages of the buyer decision making process model.
b. Explain the difference between compensatory and non-compensatory decision rules in consumer behaviour and the difference between the types of non-compensatory behaviour.
c. How can marketers use their understanding of customers’ decision making (whether compensatory or non-compensatory) in order to design their marketing strategies?

4. The following extract has been taken from the 2018 accounts of Dairy Crest plc, a British dairy company that manufactures and sells branded dairy products. The Cathedral City snack bar was launched at the end of the previous financial year. Sales are accelerating and it is now present in most convenience stores as well as increasingly being stocked in the 'on-the-go' section at the front of supermarkets. Snacking is a core part of the Cathedral City growth strategy and we are developing further innovations in this area, as well as expanding sales channels to include travel hubs, for example. Take up by retailers has been high and we are making firm progress in establishing the snack bar in the 'on-the-go' category.

Note: the term ‘on-the-go’ refers to consumers buying products that they will consume, shortly after purchase and outside the home, for example as a snack or day-time meal at work or while travelling.
a. Describe the market segments that Dairy Crest appears to be targeting with the Cathedral City snack bar, the positioning strategy that the company might be pursuing and the advantages and disadvantages of these. State any assumptions you are making.
b. In light of your answer to part (a), identify the objectives for a communications campaign and describe an advertisement that the company could use in order to address those objectives.