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Written Assignment # 3 Critical Thinking Questions Thomas Coleman MAR 310 Principles of Sales Professor John Mellon September 12, 2009 What kind of pricing strategy do Disneyland and Walt Disney World follow? Should these destination resorts ever employ a discount pricing strategy? If so, when and why? If not, why not? Touted as the biggest overhaul of Disney’s pricing strategy since Disney stopped charging separately for each ride in the late 1970s, these change promises to cause plenty ofhead scratching at the gates.

With so many pricing options and combinations, Disney believes its strategy offers enough customizing choices that patrons can have it their way. Simply put, the more you play, the less you pay per day. (Albright) The pricing strategy that Disneyland and Walt Disney World use is volume pricing for the best value. The goal of volume pricing is to set a price that recognizes the value that customers place on product and as additional products is purchased the price decreases.

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For example, in the bullets below Walt Disney World believes that buying in volumegives the customer the best option, thus shown in the pricing. While a one day pass is pricedat $75, but after 3 days the price of each additional day drops drastically. The price differential between a 4 and 5-day ticket is only $3. The additional per day price after 5 days is a small amount of $2 per day. 1 day Disney World base tickets are $75 2 day Disney World base tickets are $148 day Disney World base tickets are $216, break on price at about $72 a day 4 day Disney World base tickets are $225, again, even cheaper at $45 per day 5 day Disney World base tickets are $228, almost same price as 4 day at $45 per day 6 day Disney World base tickets are $231, only $38 per day, extra day only $3 more. 7 day Disney World base tickets are $233, extra day for just $2! 8 day Disney World base tickets are $235, just $2 more again 9 day Disney World base tickets are $237, you guessed it $2 10 day Disney World base tickets re $239, well, $2 again. Another pricing option for the consumer is that Disneyland and Walt Disney world offers theannual pass. For one price a customer can visit the park unlimited amount of times in aone year period. Additional perks are included like parking, dining offers, backstage tours, and many more items for the price of $619. This option would make sense to the consumer who lives nearby, because the perception the annual pass creates is that after so many visits to the park, the breakeven point would make the holder feel their next visit wouldbe free.

Yes, the destination resorts should employ a discount pricing strategy. With the economy in the tank, there is no time then now to discount in order to keep customers comingand returning to the park. Without the discount packages most families can not afford to visit Disney’s Magic experience. By discounting to keep transportation, hotel and travel expenses to a minimum, the dollars can be made up in the park sales of food, gifts, other products sold. Discounting will happen when the experience is in its off peak season.

If you have no customers, you won’t be in business long. What kind of discount pricingcan Disney offer? Discounts for packages that include hotel, air travel, meals/snacks, and park admission. (All inclusive) Offer discount price for paying in advance. Special promotion discounts can be offered during off season Consumers should do their homework prior to venturing off to Walt Disney World, however with the current hard times in the economy, this call for even more aggressive pricing.

If all the products sold in your store are name-brand products that are also available elsewhere at comparable prices, what can you do to convince people to buy them from you? List and discuss three strategies that would encourage people to patronize your store. The best way to convince people to buy from your store is by value added selling. As stated in the text, “the salesperson can distinguishbetween similar products and services and help customers perceive important differences.

The development of valuable, customer specific services and information is the hallmark of value added selling. ” (Manning). The salesperson can also add value with customer strategyand understand the buying process to develop a prospect base. I would engage a customer immediately upon entering our store and be polite, caring, display interests in helping, acknowledging and listening to their needs and concerns. I would provide advice,explain product knowledge, location, and quality of product.

Providing this customer service with intent of achieving a customer satisfaction experience will result in the loyalty of returning customers and the hope of additionalprospects for the store. Price Strategy: First and foremost, pricing strategy should fit the business goals. For instance, if your goal is achieving a certain market share, your price points may be lower than if your goalis maximizing your profits. Example: A latte at Starbucks has a higher perceived value for the price than a basic coffee with cream at McDonalds.

Simply improving the look, packaging, delivery or promise of your product you can justify a higher price and support a prestige pricing strategy. I would have customers visiting my store by offering large discounts. Everyone loves a bargain when shopping for a product or service. There are two kinds of discount shoppers; those who are price sensitive because they can’t afford to spend more, and those who are price sensitive because they are bargain seekers and don’t want to pay more. The customer wants to feel like they got a great deal.

Another way to bring customers in my store is to provide quantity discounts by adding more products in a bundle buy that customers perceive as better value while discounting the price. Use any of these strategies and see how you can uncover hidden profits in your business. Value-Added Strategy: Customer Strategy: Buying process Understand buyer behavior Developing a prospect base References Manning, Gerald L. and Reece, Barry L. (2007) “Selling Today: Creating Customer Value”, Pearson Prentice Hall, Upper Saddle River.

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