Answer these 2 discussion posts. Each answer has to be 200 words including 1-2 references. you have to agree or disagree with the post.first discussion post:I currently work as an intern for Tennessee Farm Bureau Insurance.
This past year, our nation faced a difficult time. However, Tennessee Farm Bureau Insurance never took a day off to ensure that their customers were insured if anything was to happened. Our fundings occur when customers buy insurance through Tennessee Farm Bureau (health, auto, home, and life). With a global pandemic, many Tennesseans getting laid off of work, and no one driving places, you would think that would put a hold on profitability.
However, “Farm Bureau Insurance of Tennessee experienced growth and profitability in 2020 amid a challenging year of an active storm season and global pandemic.” (fbitn.com, 2021)This class has been about understanding the effects that supply and demand have on each other and the profitability that it has on companies.
“The stock price for Tennessee Farmers Life Insurance was at $66.77 per share. Stockholder equity increased 10.6 percent over 2019’s.” (fbitn.com, 2021). And that is not all; the entire company had a “6.6 percent stock increase” from 2019. (fbitn.com, 2021).
Despite the rough year, our region had one of the best years financially. Tennesse Farm Bureau focuses on paying it forward to their customers. References: Farm Bureau Insurance Reports growth In 2020; emphasis on paying it forward. (2021, April 05).
Retrieved April 12, 2021, from https://www.fbitn.com/blog/community/farm-bureau-i…Second post:One of the most important aspects of the material covered for the second test includes pricing strategies and how to use them in the right way to maximize profit (Baye, 2017). In order to know what pricing strategy works the best for the company, there are many factors to be considered.
The factors include but are not limited to the production cost, distribution cost and the target consumer base (Baye, 2017). One very known strategy is Penetration Pricing, and it involved the setting of low prices to attract buyers and try to set themselves apart from other companies (MBAskool, 2020).
This strategy is very risky and leads to losses for the company in the first place in most cases because they are not able to keep the production costs as low when just starting the company.Another very common strategy is premium pricing. Mercedes Benz is a good example of a company using this strategy since their products are known for high prices and high quality.
Also, it is easy to say what kind of strategy they are using when only looking at their main slogan which says: “The best or nothing”. They are trying to reach their customers with the mindset that they are purchasing a high-end luxury product and are living up to that standard with their quality and prices (MBAskool, 2020).
When purchasing a car, customers are willing to pay a lot of money for a product even though they are a lot of different and way cheaper options in the automobile market. Another marketing channel they have been pursuing a lot is to be involved in an international driving platform like Luxe drive for example where motor enthusiasts can drive a Mercedes Benz in various and challenging locations (MBAskool, 2020).
This shows how the company is getting involved and makes connection within the luxury segment of the market and promote their products within their desired target market.References:Baye, M. R. (2017). Managerial Economics and Business Strategy (9th ed.). NewYork: McGraw-Hill Education.MBASkool.com (April 19, 2020) Mercedes Benz Marketing Mix (4Ps) Strategy retrieved from: Mercedes Benz Marketing Mix (4Ps) Strategy | MBA Skool-Study.Learn.Share.
