Marketing Management bu
Price Price of the Products
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DSBI Group Project Instruction(1), 稿子, Qingyuan Yang rec letter 2
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Price of the Products: DTS will seek to work with sellers that provide affordable products. A product’s price directly impacts business profits and sales volume (Liozu and Hinterhuber 137). Because DTS’s target market, Generation Z, are price-sensitive, the sellers will be expected to engage in value-based pricing. Meanwhile, the sellers should price the products under the consideration of the existence of clouts. Other than that, a dynamic pricing strategy would be a rational and cautious approach based on Gen Z’s buying habits and purchasing power. According to Netzer, more than half of Gen Z customers would compare the price with competitors, actively seek for alternatives whenever their needs are not met, and hunt for coupons and discounts. By adopting a dynamic pricing strategy, DTS would be capable of quickly responding to fluctuations in prices among competitors and variations of market demands, thereby retaining customers and building up customer loyalty. Other Prices: In order to maintain a high seller satisfaction rate, the company will ensure that the referral fee, which is the money it charges its sellers every time they sell an item, is reasonable. At the initial stage of seller platforms, DTS should employ first-degree price discrimination as knowing all available customer surplus and then setting up the differentiated pricing plan for individuals. Despite the higher cost of manpower and time, it is necessary to retain every potential client and maximize the price within the acceptable level so as to cover the cost and gain profit. Along with the number of sellers accumulated, DTS should adopt third-degree price discrimination instead of first-degree given that it is impossible to establish a differentiated pricing strategy per seller grounded on the overlarge amount of the users. DTS could separate the sellers into diverse groups based on distinguishing features and selling power, such as clothing, daily necessities, and electronics. Beyond that, DTS should stay discreet whenever brands settled since such brands could bring DTS broader media reach, potential customers and assist DTS to recognized brand image. In this case, DTS should still utilize first degree price discrimination for brands which to ensure both parties are satisfied with the referral fee percentage. Promotion Effective promotion strategy can contribute to the sellers’ and company’s growth and success. The sellers will be encouraged to engage in social media marketing because it is a cost-effective way of building brand awareness and reaching millennials and generation Z. On the other hand, traditional advertising is still relevant in today’s society (Ogidi and Utulu 57). Therefore, the company should advertise the products in traditional advertising avenues, such as billboards and TV. The app will have a functionality that will allow the sellers to advertise their products in DTS search results, the company’s website, and other pages. Download 302.48 Kb. Share with your friends:
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