Question

7) for what types of products might marketers use market penetration pricing? Provide an example 8) How do consumers benefit from product bundle pricing? Provide an example of a product bundle have personally experienced or considered and its perceived benefits. 9) Why and how do businesses segment their markets? Identity a product where you believe your own demographic is targeted as a primary customer 4 of 6

answer these questions in detail ?

Answer 1

7. The marketers use market penetration pricing when a product is new to the market. Here the customers won't have muh experience using it or the product is new to them. So in order to give the experience of the product the marketers provide it for a lesser price for a period of time. For example most of the people watch movies through DVDs and in theatres. But now a platform like Netflix is new to the market so in order to provide the experience and as a market is driven by customer trust and brand loyalty people will be reluctant to switch from one brand to another . So for providing the experience the customers are provided with less price in the beginning and after the usage it will drive them to use it again. Given example of Netflix they provide one month free trial.

8. Product bundle pricing is a pricing strategy which is very common nowadays especially in retail stores. It is when more than one product is combined together and sold for a single price. Most of the time the price of the product will be lesser than buying each separately. There are many examples for this ;McDonald's provide combo offers were we get two burgers,fries,cooldrinks together for a lesser price than we buy it separately. Another example is in clothing stores they provide buy two tshirts for a specific amount or like buy one get one free. Here the consumers benefit as it is given for lesser price than the normal one.

9. Segmentation in markets allow to focus on defined group rather than reaching the whole market which also helps in efficient use of time and resources. This is of mainly four types ; geographical segmentation,demographic segmentation, behavioural segmentation and psychographic segmentation. In demographic segmentation the market is divided mainly on the basis of age,gender,income etc. Considering my demographic for example being female many companies see me as a primary customer like lakme or any other cosmetics companies or zivame where we can purchase a wide variety of inner garments.