Description
Please help me complete my MKT 245 assignment. You just need to read the article and answer a few questions on the asignment.
Price Smarter on the Net
Harvard Business Review on Pricing
by Harvard Business School Press
Harvard Business Press © 2008 Citation
Recommend?
Price Smarter on the Net
Walter Baker
Michael V. Marn
Craig Zawada
Executive Summary
Companies generally have set prices on the Internet in two ways. Many startups have offered untenably
low prices in a rush to capture firstmover advantage. Many incumbents have simply charged the same
prices online as they do offline. Either way, companies are missing a big opportunity.
The fundamental value of the Internet lies not in lowering prices or making them consistent but in optimizing
them. After all, if it’s easy for customers to compare prices on the Internet, it’s also easy for companies to
track customers’ behavior and adjust prices accordingly.
The Net lets companies optimize prices in three ways. First, it lets them set and announce prices with
greater precision. Different prices can be tested easily, and customers’ responses can be collected instantly.
Companies can set the most profitable prices, and they can tap into previously hidden customer demand.
Second, because it’s so easy to change prices on the Internet, companies can adjust prices in response to
even small fluctuations in market conditions, customer demand, or competitors’ behavior.
Third, companies can use the clickstream data and purchase histories that it collects through the Internet to
segment customers quickly. Then it can offer segmentspecific prices or promotions immediately.
By taking full advantage of the unique possibilities afforded by the Internet to set prices with precision, adapt
to changing circumstances quickly, and segment customers accurately, companies can get their pricing
right. It’s one of the ultimate drivers of ebusiness success.
Two very different approaches to pricing—neither optimal—have dominated the sale of goods and services through the
Internet. Many startups have offered untenably low prices in the rush to capture firstmover advantage. Many
incumbents, by contrast, have simply transferred their offline prices onto the Internet. In some cases, they believe their
brand strength inoculates them from the need to price competitively; in other cases, they feel pressure to establish an on
line presence but aren’t prepared for the complexities—or potential cannibalization—of multichannel pricing.
Both approaches cause companies to miss a big opportunity. The Internet allows companies to price with far more
precision than they can offline and to create enormous value in the process. Transparency and efficiency, after all, go
both ways. Just as it’s easy for customers to compare prices on the Internet, so is it easy for companies to track
customers’ behavior and adjust prices accordingly. But organizations must act quickly and rethink their online policies
before habit and customer expectations make changes difficult, if not disastrous.
Use of content on this site is subject to the restrictions set forth in the Terms of Use.
Page Layout and Design ©2018 Skillsoft Ireland Limited All rights reserved, individual content is owned by respective
copyright holder.
Feedback | Privacy and Cookie Policy | v.4.0.78.319
Article Summary 1
From the list of assigned readings included in this course, or another article of your choice from the Harvard Business Review, choose an article that
deals with one or more of the elements of marketing strategy (product, price, place, promotion; or, if services related, people, process, and physical
evidence) and summarize the article, addressing the following questions:
1. Why is the author writing about the subject?
2. What is the thesis of the article?
3. What are the key points/facts presented in the article?
4. What are the conclusions and recommendations?
5. Explain how the information in the article can inform marketing strategy. That is, how is the information presented important to a marketer in
designing a marketing strategy?
6. Critique the article: Is the article useful? Why or how? Is the article well-written and easy to understand? What is your assessment of the article?
Would you recommend it to others? Why?
NOTE: Use terminology from the glossary in Marketing: An Enterprise View when writing your article summary.
Prepare this assignment according to the guidelines found in the GCU Style Guide, located in the Student Success Center.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful
completion.
You are required to submit this assignment to LopesWrite. Please refer to the directions in the Student Success Center.
Purchase answer to see full
attachment
Harvard Business Review on Pricing
by Harvard Business School Press
Harvard Business Press © 2008 Citation
Recommend?
Price Smarter on the Net
Walter Baker
Michael V. Marn
Craig Zawada
Executive Summary
Companies generally have set prices on the Internet in two ways. Many startups have offered untenably
low prices in a rush to capture firstmover advantage. Many incumbents have simply charged the same
prices online as they do offline. Either way, companies are missing a big opportunity.
The fundamental value of the Internet lies not in lowering prices or making them consistent but in optimizing
them. After all, if it’s easy for customers to compare prices on the Internet, it’s also easy for companies to
track customers’ behavior and adjust prices accordingly.
The Net lets companies optimize prices in three ways. First, it lets them set and announce prices with
greater precision. Different prices can be tested easily, and customers’ responses can be collected instantly.
Companies can set the most profitable prices, and they can tap into previously hidden customer demand.
Second, because it’s so easy to change prices on the Internet, companies can adjust prices in response to
even small fluctuations in market conditions, customer demand, or competitors’ behavior.
Third, companies can use the clickstream data and purchase histories that it collects through the Internet to
segment customers quickly. Then it can offer segmentspecific prices or promotions immediately.
By taking full advantage of the unique possibilities afforded by the Internet to set prices with precision, adapt
to changing circumstances quickly, and segment customers accurately, companies can get their pricing
right. It’s one of the ultimate drivers of ebusiness success.
Two very different approaches to pricing—neither optimal—have dominated the sale of goods and services through the
Internet. Many startups have offered untenably low prices in the rush to capture firstmover advantage. Many
incumbents, by contrast, have simply transferred their offline prices onto the Internet. In some cases, they believe their
brand strength inoculates them from the need to price competitively; in other cases, they feel pressure to establish an on
line presence but aren’t prepared for the complexities—or potential cannibalization—of multichannel pricing.
Both approaches cause companies to miss a big opportunity. The Internet allows companies to price with far more
precision than they can offline and to create enormous value in the process. Transparency and efficiency, after all, go
both ways. Just as it’s easy for customers to compare prices on the Internet, so is it easy for companies to track
customers’ behavior and adjust prices accordingly. But organizations must act quickly and rethink their online policies
before habit and customer expectations make changes difficult, if not disastrous.
Use of content on this site is subject to the restrictions set forth in the Terms of Use.
Page Layout and Design ©2018 Skillsoft Ireland Limited All rights reserved, individual content is owned by respective
copyright holder.
Feedback | Privacy and Cookie Policy | v.4.0.78.319
Article Summary 1
From the list of assigned readings included in this course, or another article of your choice from the Harvard Business Review, choose an article that
deals with one or more of the elements of marketing strategy (product, price, place, promotion; or, if services related, people, process, and physical
evidence) and summarize the article, addressing the following questions:
1. Why is the author writing about the subject?
2. What is the thesis of the article?
3. What are the key points/facts presented in the article?
4. What are the conclusions and recommendations?
5. Explain how the information in the article can inform marketing strategy. That is, how is the information presented important to a marketer in
designing a marketing strategy?
6. Critique the article: Is the article useful? Why or how? Is the article well-written and easy to understand? What is your assessment of the article?
Would you recommend it to others? Why?
NOTE: Use terminology from the glossary in Marketing: An Enterprise View when writing your article summary.
Prepare this assignment according to the guidelines found in the GCU Style Guide, located in the Student Success Center.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful
completion.
You are required to submit this assignment to LopesWrite. Please refer to the directions in the Student Success Center.
Purchase answer to see full
attachment
Categories: