Pricing Strategy In this module, we are going to create a pricing strategy to guide development of a program to promote physical activity among tweens. The purpose of this component in our marketing plan is to identify costs – monetary, psychological, social, and other costs - that we must lower or make acceptable to our priority audience so our product is affordable. In other words, we want to make sure to lower any barriers that might deter them from being physically active. 1

Research Findings Just like we did in the previous module when creating the product strategy, I will review research findings summarized in the strategy workbook, Promoting Physical Activity in Community Settings, and you will use the research results to make the marketing decisions.

Tween Perception of Costs Fear of failure Embarrassment Inability to “make the team” Monetary costs Messed up hair and makeup The major costs or barriers to physical activity identified in the Lexington focus groups and CDCs literature review include: First and foremost, fear of failure and the humiliation that accompanies an inability to make a sports team or to master a task. In Lexington, thousands of girls competed for middle school dance teams, but only a few were selected. Tweens also told us that they wanted to avoid embarrassment from appearing uncoordinated or unable to master new sports. Many could not afford the activities they enjoy, such as karate lessons or laser tag. The girls often avoid activities that can mess up their hair or make up, especially during the day when they must return to class.

Parent Perceptions of Cost Monetary costs Fees Clothes Equipment Safety Time Transportation Tweens’ parents echoed concerns about monetary outlays required for some activities. In addition to registration feeds or lessons, they also worried about buying uniforms and special equipment. But their major concern was safety. Even in Lexington, most parents were afraid to let their children play outdoors unsupervised. The two other major deterrents were time required to take their children to places where they could participate in physical activities, and problems arranging for transportation when they were working.

Marketing Question How can we reduce the costs of being physically active? So how can we address these concerns and lower the costs or barriers that deter tweens from being more active? Once you have written your answer, click on the next slide to see what the coalition decided.

Data-Based Marketing Plan Actual product Physical activity Priority population Moderate to passive tweens Acknowledge differences by gender and age Core product Fun, play with friends, try new things Augmented product Monitoring device Position Physical activity is a more fun and exciting way to spend time with friends than video games or TV Price Sponsor activities that are easy, non-competitive, safe, and inexpensive Respecting tweens’ and parents’ concerns, the coalition decided the program should offer youth a wide variety of opportunities to try new ways to be active that were easy to do (so they couldn’t fail), non-competitive so everyone made the team, were safe to do, and did not require expensive equipment or uniforms.