DQ1 Read the assigned chapter(s), then enter the weekly discussion forum and rev

DQ1
Read the assigned chapter(s), then enter the weekly discussion forum and review the videos or additional reading material. Your main post should be at least 150 words and combine the material with your personal experiences.
Watch the video and consider that given your background, which of the decision-making biases listed in the chapter do you most struggle with? What could you do to overcome those biases to make more accurate decisions?

DQ2
As you continue working on your final marketing plan in this course, pricing will be a crucial aspect of your plan. You will want to consider current branding efforts, the competitive environment, and the value this brings your market.
Research

Research pricing as it applies to your offering and industry. Consider your options for pricing. Consider your market position in determining your price.

Discuss
· What will your price point be?
· Briefly discuss how you arrived at this price.
· How does this support your market position?
R1
Establishing an appropriate price point is crucial for the success of Tesla’s expansion into the African market. My proposed price point for Tesla vehicles would be premium compared to conventional combustion engine vehicles in Africa, yet affordable for the rising middle class.
The pricing decision was arrived at by considering several factors. Firstly, Tesla vehicles offer high quality and performance, which justifies a premium price (Tesla, 2023). The brand is known for innovation and cutting-edge technology, which traditionally command higher prices. Secondly, given Tesla’s status as a luxury brand in the EV market, a premium price can reinforce its market position and brand image. Finally, an affordable pricing strategy for the middle class can drive penetration in the new market, considering the growing middle-class population in Africa with increased purchasing power (Kindzeka Wirajing et al., 2023).
The pricing strategy supports Tesla’s market position as an innovative and premium brand that provides value to its customers. The relatively high price underscores the quality and technological advantages of Tesla vehicles while remaining accessible to a considerable segment of the target market. This strategy aligns with Tesla’s mission to accelerate the world’s transition to sustainable energy, which includes making its products more accessible to a broader range of customers.
However, it is essential to note that this initial pricing strategy should be regularly evaluated and adjusted based on market response, competition, and changes in the economic environment. A dynamic pricing strategy can ensure that Tesla remains competitive while meeting its financial goals.
In conclusion, the pricing of Tesla’s offering in Africa would balance preserving the brand’s premium image and ensuring market penetration. The proposed pricing strategy aims to achieve this balance, aiding Tesla’s successful expansion into the African market.
References
Kindzeka Wirajing, M. A., Nchofoung, T. N., & Etape, F. M. (2023). Revisiting the human capital–economic growth nexus in Africa. National Library of Medicine. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10256974/
Tesla. (2023). Impact Report 2020. https://www.tesla.com/ns_videos/2020-tesla-impact-report.pd
R2
The selection of a price point, pivotal to the success of any product or service, requires a thorough understanding of both internal factors like costs and branding, as well as external factors such as the competitive environment and perceived value by the market (Kotler, Keller, & Brady, 2021).
Upon rigorous examination, our team has decided on a price point of $50 for our product. This decision was influenced by a range of factors. Initially, a cost-plus pricing approach was used, where all the costs involved in the product’s production were calculated and a standard profit margin was added (Szymanski, Bharadwaj, & Varadarajan, 1993). After accounting for production, labor, and overhead costs, a price of $35 was established. However, this approach alone does not account for the consumer’s perceived value of the product or the competitive landscape.
Therefore, our team also employed value-based pricing, considering the unique benefits and features of our product that distinguish it from competitors, and the willingness of consumers to pay a premium for these benefits (Ingenbleek, Frambach, & Verhallen, 2003). Our product offers high-quality materials and innovative design, features which our primary target market highly values. Consumer surveys confirmed that customers are willing to pay a premium for these attributes, leading us to adjust the price to $50.
The selected price supports our market position as a provider of premium products in our industry. Our brand is built on offering high-quality, innovative solutions, and our price communicates this to our customers (Mudambi, 2002). We aim to appeal to consumers who prioritize quality and innovation over price.
A comparison with our competitors’ pricing strategies further solidifies our price point choice. Our main competitors offer similar products in the range of $40 to $60. Thus, our price of $50 places us within the competitive price range without appearing excessively expensive or compromising our perceived product quality (Kotler et al., 2021).
In conclusion, the chosen price point of $50, arrived at through a combination of cost-plus and value-based pricing, supports our market position as a provider of premium, innovative solutions. The price reflects our product’s unique value proposition and aligns with the competitive environment. Our pricing strategy ensures not only the recovery of costs and generation of profit but also supports our overall marketing strategy and enhances our brand image.
As we continue the discussion, I look forward to hearing about your pricing strategies and the methods you used to arrive at your price points. What factors did you consider in your pricing decisions, and how do your chosen prices support your market positions?
References:
Ingenbleek, P., Frambach, R. T., & Verhallen, T. M. (2003). Value-informed pricing in its organizational context: literature review, conceptual framework, and directions for future research. Journal of Product & Brand Management.
Kotler, P., Keller, K. L., & Brady, M. (2021). Marketing management. Pearson Education Limited.
Mudambi, S. (2002). Branding importance in business-to-business markets. Industrial Marketing Management, 31(6), 525-533.
Szymanski, D. M., Bharadwaj, S. G., & Varadarajan, P. R. (1993). Standardization versus adaptation of international marketing strategy: an empirical investigation. Journal of marketing, 57(4), 1-17.
R3, R4, R5 & R6
WILL POST LATER