Price

Price

When putting your product onto the market it is very important to make sure the research has been done in the existing market to prove that the product will sell. If the price is not correct when placed onto the market the product will not sell and it will flop. The price is very important and is the amount of money charged for a product or service. (Armstrong & Kotler (2011) Marketing: An Introduction) When setting the pricing for the Lava Cakes, we here at Phileas Fogg snack foods wanted to make the price fair, but also competitive with other snack companies. The main thing we kept in mind when setting the price is the price is the sum of all of the values that consumers give up in order to gain the benefits of having or using the product or service. (Armstrong & Kotler (2011) Marketing: An Introduction) Based on the market we are in we decided to use competition based pricing where set our prices based on the cost of producing, distributing, and selling the product, Lava Cake, at a fair rate of return. (Armstrong & Kotler (2011) Marketing: An Introduction) We here at Phileas Fogg have to make sure we dominate the current market companies in this field. In this market, where it is tough economic times, it isn’t always the best answer to cut corners to save cost. (Armstrong & Kotler (2011) Marketing: An Introduction) The customers are still looking for quality even more now then ever. We here at the Phileas Fogg snack food company want to sell value, not price. We want the sellers to enjoy our food products, especially the brand new bar snack food, Lava Cake and get involved in the story as well. We don’t just sell a food; we are selling a conversation starter as well as a great snack time!