hat can receive e-mail, receive and make phone calls, and check stock prices, and $350 for the model that has a letter keypad as well. As a promotional feature to kick start sales we plan to offer a $50 price reduction for the $250 model, and a $75 price reduction for the $350 model when they sign up for 2-year minimum contract with the PCS provider. We hope to negotiate a split in the price reduction with the provider. We would both gain from this reduction due to their retention of a 2 year contract, and our sale of the new product.We will emphasize the features that are gained by this product, and downplay the cost. It is essentially a watch, pager, phone, and internet appliance. That is a 4-in-1 marketing point that we will most definitely stress to the consumer. Many individuals will welcome the chance to wear one item on their wrist in place of carrying a phone, wearing a watch, wearing a pager, and keeping track of all of them. The price does not seem so great when thought of in terms of the fact that it is replacing at least three items.Eventually there will be other models produced by competitors that will rival the features that we offer on our watch appliance. We have already begun planning to include a calendar option and small television screen that can be played when the phone is off. When the competitor’s product catches up to our own, we will be in a research and development position to advance our existing product further, and thus ensure our position of being an innovator. It will further enable us to maintain our upper-end pricing and profits.Price advertising is important when the consumer can actually see and handle the product. Advertising of prices via television and the Internet can often deter consumers who feel that the 2-dimensional image is not worth the cost. This is why trade-shows, and personal selling is so important. It brings the consumer in personal contact with the product.Price ch...
