Pricing Strategy and Channel Distribution.

Topics: Pricing, Marketing, Value-based pricing Pages: 4 (1079 words) Published: September 7, 2012
Pricing strategy and Channel Distribution.

Strayer University

Author Note
Silp Dhanasin, Master of Business Administration, Strayer University
Correspondence concerning this article should be address to Silp Dhanasin, Master of Business Administration, Strayer University, 500 Redland Ct#100, Owing Mills, MD 21117

Abstract

Gravity Co., Ltd is a start-up game on mobile business, and because the company intends to establish its market share; it will be utilizing the best pricing strategy and tactics, as well as the most practical distribution process. The pricing strategy defines what the main focus in pricing the mobile news games offering of the company is. While the pricing tactics will allow the company to gain market shares and earn profits over its competitors. The distribution strategy describes the company’s chosen channels in making its services available to the customers. Since the mobile news game is a mobile application product, it has to follow the guidelines set for in the selection of pricing and distribution strategies.

Pricing strategy and Channel Distribution.

First of all, we determine and discuss about a pricing strategy (Penetration or Skimming). Gravity will utilize the penetration pricing strategy in its product offering. The penetration pricing strategy is defined as “the pricing strategy where the organization introduces its products or services to its customers at a comparatively lower price than the existing market price” (Raghuvanshi, 2010, para 1). The main idea in using the penetration pricing strategy for Gravity is to attract new customers to try the news games offered by the company. There are many new applications in the market today and the competition is so stiff, the company understands that in order to gain trials, it has to set an affordable price to its services and products. Also, mobile game customers tend to be price sensitive and may easily switch brands, thus, a need to secure their loyalty by...
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