Marketing Term Paper on Product/Service Offered by Company A

Product/Service Offered by Company A


In the current global economy, businesses cannot take for granted the relationships formed with other businesses or governments. Competition and innovation take the center stage in customer satisfaction. In order for a firm to have an upper edge over its competitors, then its marketing strategies should be on point. This paper tends to explain a Company A’s line of service delivery and what are the factors that are considered in their price determination scheme. Company A is a business consultation firm for firms that want to do business in China. It is a family run business and its management is in two countries, Germany, and China. It, therefore, becomes interesting to know how Company A operates in such a multi-cultured system and very competitive industry.

Main Analysis

Product/Service Offering

For a company to sell effectively its products and services, the marketing mix it has to be one that creates a competitive advantage to the firm itself. To make a product superior in the eyes of the consumer in such a way that the consumers’ central interest are perceived to be the superiority of the products and services a firm offers. The best definition of product/service offering is those products and services whose function is to solve the consumer’s problem and automatically lead the consumer to trade with the supplier. The producer may be offering a variety of products or services from consultation, banking, investment advice, real estate, technology service to selling of capital goods.

It, therefore, becomes important to include this aspect to the decisions that a firm makes in its pricing decisions. In the internal research of the firm, for example, company A should stress more on the fact that it has to identify more with a core service that ultimately satisfies consumers and gives Company A competitive edge. Some of the advantages company A have do include the fact that the management system is from two countries definitely combines the two cultures in the firm and creates a certain synergy in the management and a better understanding of a lot of customers. The other advantage is the possibility of Company A to get a larger market share since it can easily advertise itself in both Europe and Asia. Patriotism can also make German and China firms want to do business with Company A.

Company A is a family-run business and that comes with its own advantages which include: Sustainability, family position typically determines who leads the business and, as a result, there comes a clear role definition of concern family members leading to longevity in leadership. Commitment, since it is the family needs at stake, there is a greater sense of accountability and commitment since it has direct benefits to family members. Flexibility, a family-run business has some level of flexibility in terms of who is doing which job. Family members are willing to chip in and help where necessary. Decreased costs, unlike typical workers, family members are willing to contribute even private finances to ensure the long-term success of the firm.

Price Determination Scheme

            Price determination is a rational process calculated in a straightforward manner depending on the market structure and the firm’s policy. Firms invest in the service delivery process and expect a return in form of revenues and profits. Consumers also want to buy these services and goods at prices that are as lowest as possible. The interaction of the supply and demand should be the set prices for the market. This cannot independently happen since there are factors to be considered by both consumers and producers to have a direct effect on the price, they are referred to as the determinants of pricing scheme.

            Pricing schemes play an important role for every company that offers products or services. They pose a challenge from both a design and usability standpoint. Schemes should be simple and as understandable as possible. A good price differentiated scheme gives a clear distinction of the prices of each services offered by the Company A. They must be simple but at the same time clearly differentiate between features and prices of different products and services.

A pricing table should help users pick the most appropriate plan for them. Company A has carefully examined its product portfolio and picked the most important features to present in its pricing plans. Consumers only get the most important information on the service they need: available features, options and costs. The reason there should be distinct difference in theservices offered is to decrease the chances of consumers getting difficulty to choose a bundle of service that satisfies them most.

            Once Company A has identified the most important services through doing a consumer integration, they go ahead and create a more detailed list of services for consumers who are interested in a particular plan. Consumers must know what kind of a product they are spending their money on and all of the features associated with it.

            Company A being a consultancy firm, it has to clearly distinguish the services it provides and by doing this it must have a clear cut communication platform that makes it easy for consumers who want to do business in China understand. Price differences must also stand out clearly either in ascending or descending order. This should be done in an appealing manner. The price differentiation scheme created below is for firms that want to invest in China. The consultancy advice cost plan depend on the sectors that the firms want to join.


            This price discrimination scheme is meant to give advice services to firms that want to venture in the mentioned sectors of the China’s economy and prices charged in service delivery (USD). It is also important to note that the Headquarter of Company A is in Hong Kong, China. There are a lot of determinant of price for Company A which do include:

Cost Competitive Advantage

Company A is able to utilize its skilled workforce, controlled cost, and efficient operations to create maximum value to its consumers. Therefore the fact that Company A has a large customer base it can reduce its prices relative to the prices offered by other firms in the industry like Accenture and Added Value.

Product/ Service Differentiation

The other way that Company A gets a competitive advantage is through service differentiation. The customized services are meant to fully satisfy each customer’s wants and this makes them loyal to Company A. Through product differentiation, Company A sets different prices to different services thus it helps determine how prices are set. Their differentiated products come with the reliability of these services.


Technology simply means knowing the cause-effect relations that are to be used in solving technical problems like communication considering that Company A has branches in Shanghai. Technology can be said to create a condition that enables a firm produce products and services at a cost effective, economically and competitive prices. Therefore the more a firm invests in technology the more it can cut on its costs, meaning that technology is a very important type of resource.

Resource Capacity and Resource Flexibility

Resources are the means by which products and services are produced, including machines, plants and systems and human resources. The resources available to a firm and how intensively they are used determine the quantity and quality of output per time period it can produce and hence its ability to meet customer demands. One of the problems in developing an appropriate resource mix is that the capacity of individual resources may not match. Flexibility on the other hand relates to all types of resources such as service delivery systems, human resource, product related know-how and the management. One driver of increased flexibility is the use of an electronically integrated system and having an internal order and logistics. Computer-aided design and computer-aided planning facilitate the creation of quality services and products that are up to standards with what consumers need. Flexibility in technology is also responsible for product and service differentiation.

Consumer Integration

            When the aim of a firm is to customize products to the consumer, consumer cooperation in creating the PSO is necessary. This is an important feature when dealing in the service industry where services can be provided according to the prices of the consumers. This is also known  value-based pricing strategy and is mostly practiced by service delivering companies. For effective customization customer cooperation and the sharing of informationis necessary, because it is the customer that best understands the specifics of the use environment. We use the term customer integration to refer to the overall processes (Wilkinson, 2008).


As explained in the above segment, price determination scheme is partly dependent on the multi-stage marketing plans carried out by Company A. Multi-stage marketing involves a combination of a lot of aspects across the departments of the firm. Therefore, it is an overall approach to cost and price determination rather than a specifically designed approach. A straight evaluation of Company A’s resources is very critical to the success of a multi-stage marketing approach. The other aspect that helps cut the costs of Company A is the fact that it is a family business meaning there is a lot of flexibilities and reduced unnecessary costs. Considering that brand image is important to attract sales, it is important for a firm to invest in its marketing portfolio to its maximum to ensure that it can maximize its revenue.


Kleinaltenkamp, M., Plinke, W., & Geiger, I. (Eds.). (2014). Business Relationship Management and Marketing: Mastering Business Markets. Springer.