23 May HOW MUCH IS THE TARGET MARKET WILLING AND ABLE TO PAY FOR YOUR PRODUCT OR SERVICE?
Using the paper attached on McKessons New Product CaPix, Create two pages.
1. Write A one page Executive Summary that sets the stage for the document that is attached.
2. Using the attached paper, refine the pricing section and re-write one page on pricing that includes the following:
Pricing. Use this section of your business plan to develop and justify a pricing strategy for the new product or service. Be sure to address the following:
A. What are the fixed and variable costs to the company of producing, marketing, and selling the new good or service, and how do those fit with the company’s short- and long-term objectives? Support your narrative with a table showing calculations and any assumptions.
B. How much is the target market willing and able to pay for your product or service? Use target market analysis and research on competitors’ prices to support your answer.
C. Are targeted consumers willing and able to pay more for your product or service if it (or the organization, more generally) aligns with their preferences for socially responsible and ethical behavior? Justify your response with evidence.
D. In light of your analysis, what pricing strategy and price is most appropriate for this product or service and why? For example, would skimming, penetration, economy, or premium pricing be most appropriate? What should the initial price be?
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