Solved: A business-to-business marketing organisation with which you are familiar

A business-to-business marketing organisation with which you are familiar is introducing a new product (physical good or service) in your country or region.

LinkedIn : Although linked in interfaces equally with consumers as well as businesses and has a certain portion of its revenue that constitutes of LinkedIn premium membership. a vast majority of its revenue comes from paid job listings and b2b sales and targeted marketing programs.

a) Explain the pricing strategy (market penetration or skimming) you would follow for this new product and justify your reasoning. (10 marks) b) Recommend appropriate strategies to confront potential price attacks from competitors, justifying those recommendations.

Linkedin Talent Solutions & Advertising Solutions pricing model & strategy

Linked in offers business or companies $195.00 for a 30-day posting, along with a multi-job pack

5 job credits @ $145.00 per job

or

10 job credits at $115.00 per job).

Pay for each click or every 1,000 impressions).

This is based on a bidding system and is subject to dynamic pricing based on demand and the availability of advertising space.

The two bidding options offered are

Pay-per-click (CPC)

Pay-per-1,000 impressions (CPM)

Linkedin’s strategy is to use its large aggregated base of professional who constitute of both active as well as passive job seekers as pool of talent for potential employers to recruit from. Because of the wide reach of a job portals, Linkedin’s reach will enable to target a young employee database . This would be a a good recruitment source for entry level jobs as well as middle and senior management positions. Linkedin also has advertising models which allow it to reach passive job seekers too which monster does not. It has a user base where users come there to read on current industry trends etc.

Strategies to confront potential price attacks from competitors

Linkedin’s closest competitor is monster.com

Monster.com Job Listings pricing model & strategy

Monster Job Posting Cost – Monster offers 30 and 60 day job posting options. Pricing for a single job posting on Monster for 30 days starts at $375, 60 days for $395, with discounts when purchasing in bulk. Special Offers include multiple job posting packs and the opportunity to feature jobs with bold or highlighted font.

Linkedin plans to compete monster and similar competitors by diversifying its rang of offering. Linkedin is not moving beyond the jobs marketplace model. Its evolving into a platform which offers learning and development programs for employees. enterprises and students. Its also moving towards becoming a marketplace for business services that can be exchanged between firms and individuals.