Market Segmentation and Targeting

Think about the pricing methods —markup pricing, target-return pricing, perceived-value pricing, value pricing, going-rate pricing, and auction-type pricing. As a consumer, which do you prefer to deal with? Why?

If the average price were to stay the same, which would you prefer a firm to do:

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(1) set one price and not deviate or

(2) employ slightly higher prices most of the year but offer slightly discounted prices or specials for certain occasions? (at least 200 words)

Imagine that you are about to launch a social networking site that will compete with Facebook. You must provide your boss with a marketing strategy.

Determine the approach you will use going to measure success. Provide a rationale for your response.

Explain how a hands-on company, such as a tire company, might be able to effectively use the internet to meet customer needs.

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