Marketing

Table of Contents

1. Topic pack - Marketing - introduction
2. 4.1 The role of marketing - notes
3. 4.1 The role of marketing - questions
4. 4.2 Marketing Planning - notes
5. 4.2 Marketing planning - questions
6. 4.3 Product introduction - notes
7. 4.3 Product - questions
8. 4.3 Product - simulations and activities
9. 4.4 Price - notes
10. 4.4 Price - questions
11. 4.4 Price - simulations and activities
    1. TryIT - Pricing yachts
    2. AnimateIT - Markets and prices
    3. Diagram toolkit
    4. Air travel (1)
    5. Air travel (2)
    6. Air travel (3)
    7. iPods (1)
    8. iPods (2)
    9. iPods (3)
12. 4.4 Promotion - notes
13. 4.5 Promotion - questions
14. 4.6 Place (distribution) - notes
15. 4.7 International marketing - notes
16. 4.7 International marketing - questions
17. 4.8 E-commerce - notes
18. 4.8 E-commerce - questions
19. Printable version

TryIT - Pricing yachts

Now that you have considered many of the different strategies that companies use to price their products, why not try it out for yourself.

In the window below is the Maze Green Yachts online business simulation. In this, you get to see how well you can run a major international yacht manufacturer.

To test how well you can price their yachts, go to the Maze Green business simulation (you can either do this in the window below or you can open it in a separate window by following the previous link).

Question 1

How do you think that the values of the price and income elasticities differ between the Maze Green products at the bottom of the price range and the top of the price range? (See elasticity section for more detail on elasticity - click on appropriate page in table of contents on the left)

Question 2

Try running the simulation for one year while increasing the prices of the yachts by 5%. How much have sales gone down by? What is the value of the price elasticity of demand for the yachts?

Question 3

Now try the same while increasing the prices of the yachts by 20%. How much have sales gone down by? Has the price elasticity of demand for the yachts changed?

Question 4

Now try the same while increasing the prices of the yachts by 50%. How much have sales gone down by? Has the price elasticity of demand for the yachts changed?

Question 5

Try running the simulation for one year while decreasing the prices of the yachts by 5%. How much have sales gone up by? What is the value of the price elasticity of demand for the yachts?

Question 6

Now try the same while decreasing the prices of the yachts by 20%. How much have sales gone up by? Has the price elasticity of demand for the yachts changed?

Question 7

Now try the same while decreasing the prices of the yachts by 50%. How much have sales gone up by? Has the price elasticity of demand for the yachts changed?

Question 8

Analyse how the value of the price elasticity of demand is likely to affect your optimum pricing strategy.

Question 9

Develop an appropriate pricing strategy for Maze Green Yachts for the launch of a new yacht. The new product is aimed at the highest income earners and is the largest yacht in their product range. Customers are able to individualise the yachts to a significant extent.