Marketing

Introduction

In Motion Highlight Reels is a company that will have various pricing and offers for potential customers. The pricing of the products and services that the company will provide has to be able to compete with its competitors. The pricing strategy of In Motion Highlight Reels is one that will be well implemented and thought out in order for the company to be competitive and successful within the industry. The company has to think, what does the customer want and at what price are they will to pay for what they want? Developing certain strategies that appeal to consumers is by far the most effective way for In Motion Highlight Reels to gain business and to differentiate its products and services from its competition.

Determine and discuss a pricing strategy (penetration or skimming).

The pricing strategy that will be best for In Motion Highlight Reels will be skimming. "Skimming is when product or services are introduced, the price is set high in order to attract customers who are not sensitive to price"(Gould, 2008). Athletes and families who are interested in obtaining athletic scholarships will pay a fair amount of money in getting a highlight tape produced. Those families who are price sensitive will be willing to pay a high price for a highlight tape on the notion of a returned investment, a scholarship.

In Motion Highlight Reels will be able to obtain a sufficient amount of business initially with skimming pricing. Many are aware that anything dealing with technology and the production of film is going to be an expensive, so having high prices initially will not be a surprise to many. In order for In Motion Highlight Reels to be a first choice as a sports highlight company, the pricing has to be competitive with all the other sports highlight video companies. Skimming will allow In Motion Highlight Reels the opportunity to make a profit since there are not many local highlight video companies. Many companies are based online, but people look for services to be personable. In Motion Highlight Reels offers that affable services that you just cannot put a price on.

When other companies like In Motion Highlight Reels enter into the market, then prices will decrease. The reason so, is that the supply for the products and services that In Motion Highlight Reels offers will increase. In Motion will have to remain competitive with these other companies, therefore, decreasing prices will be necessary.

Determine and discuss pricing tactics to be used for your product.

How can In Motion Highlight Reels get customers to walk through the doors, versus going to another local company or utilizing the internet for services? The price of products and services are important and at times a primary factor in making a purchase. Using pricing tactics will be very beneficial for In Motion and will hopefully gain the attention of many athletes and families.

Two potential pricing strategies that will be effective for In Motion Highlight Reels are product bundle and promotional pricing. Both pricing tactics will give In Motion Highlight Reels the opportunity to gain business from its target market. These tactics give consumers

The product bundle pricing tactic is where different products are combined in a packaged deal where the price of all products purchased together is less than buying the items separately (www.marketingteacher.com). Customers will be given the opportunity to purchase a sport highlight video, an athlete biography, and a personalized athletic jersey for $229. If these items were purchased separately, then the cost would be close to $300. Buying the bundled package saves consumers close to $80. When consumers can see that they are saving money, the likelihood of a purchase is greater. Bundling is a great idea to move more items out of In Motion Highlight Reels.

The other pricing tactic that In Motion Highlight Reels will use is the promotional pricing tactic. This tactic just has promotion or offerings beneficial to consumers. The promotional tactic it will most likely use is the BOGO, better known as the buy one get one tactic. Customers of In Motion Highlight Reels will be able to buy a sports highlight video at full price and then receive the other video for free. Being that the sport highlight videos cannot be copied, having more than one can be useful for athletes who are interested in more than one college or university. The buy one get one free pricing tactic will stimulate the sale of highlight videos.

Identify any legal or ethical issues related to this pricing tactic.

With product bundling and promotional pricing tactics there are a few legal and ethical issues that should be considered. Both tactics, if not utilized and