Pricing strategy

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Product, Pricing, and Channels Paper

Pricing Strategy
Establishing an effective pricing strategy is crucial for the success of a business when launching a product or service. “Pricng decisions affect both the number of sales a firm makes and how much money it earns.” (University of Phoenix, 2011, para. ) Indeed, one of the most important issues facing any business is determining how much to charge for a product or service. The market for tablets and other mobile devices has a wide range of options to choose from. Prices range from as low as $59.99 for a smaller Proscan tablet at sold at Wal-Mart to Apple’s iPad starting at $349.00 and go higher depending on how much memory you’d like to have included. Amazons Kindle Fire HD offers a quality product at a competitive price point considering the quality of materials such as HD camera and HD display, for around $299.00 with smaller size Kindle Fires going for $160.00

An effective pricing strategy when launching the Kindle Fire Hd would be initiating a penetration pricing policy that covers a wider demographic. Apple’s iPad appeals mainly to the elite market. Amazon doesn’t have a discount plan to offer but does have additional incentives to set itself apart from competitors. The convenience of the Amazon store means purchases and additional features and content are readily available to add to the device. Amazon Prime membership also adds to the experience offering free content available to be viewed at no additional cost. Additional perks such credits that can be used at the Amazon store including those listed above allow Amazon to motivate buyers in a competitive market.


(1996-2014). Retrieved from

University of Phoenix. (2011). Basic marketing: A marketing strategy planning approach (19th ed.). Retrieved from University of Phoenix, mkT/421 website.
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