IntroductionIf an organization is successful in creating customer value through a variety of marketing mix strategies, value must also be derived from pricing decisions. These decisions are determined by internal and external factors.DirectionsMini-case studies: The students are expected to answer the questions associated with the case. These questions are intended to elicit thoughtful reactions to contemporary marketing strategy initiatives and challenges. The students are expected to carefully read the assignment instructions, then thoroughly and explicitly address each component of the corresponding case study questions.The responses should reflect higher level cognitive processing (analysis, synthesis, and evaluation), which is essential for someone in any industry, as marketing decisions affect all levels and stakeholders within the organization and in the external marketplace/marketspace.There is no minimum number of references that need to be utilized to support the completion of this assignment; however, it is generally understood that any good case study analysis will incorporate the appropriate quality and quantity of scholarly sources to support any suppositions and recommendations.The submission will not exceed four (4) pages in length, excluding the title and references pages.The document must adhere to the APA writing style.Finally, the document should be prepared as a Microsoft Word document and uploaded to Submit Assignment.Case Study: Carmex – Setting the Price of the Number One Lip Balm1. Read the case on pages 394-396 in your text. (Additional information regarding Carmex can be found on pages 232-234 in the text). Also review the announcements regarding how to approach these assignments.2. Watch the video supplement to the case at link http://www.viddler.com/embed/64abee32 (Links to an external site.).3. Respond to the following case question. (Disregard the questions in the text.)The Carmex pricing structures are determined by how a firm might view itself as an integral partner in a value network. It may be thought of as an overall system of formal and informal relationship within which the firm participates to procure, transform, enhance, and ultimately supply its offering in final form within a market space. This value network is a strategic approach to cut costs and maximize process efficiencies, in the pursuit of the ultimate objective; to co-create value, a most important component of the pricing structure.You’re a member of the corporate marketing team and you’ve been given the task of recommending the pricing considerations for future product introductions. Include an analysis/evaluation of the current pricing structure (define the strategy used currently) and if you recommend this strategy be continued for future product introductions.Teacher Notes:Hints on How To Tackle the Carmex case due Sunday…..Dr. Heidi McLaughlinAll SectionsNo unread replies.No replies.This week’s case is centered around your understanding of pricing strategies. I encourage you to read the textbook material regarding the various pricing strategies available and the rationale behind each strategy. For example, please do not suggest ‘prices be reduced’ or ‘increased’ as part of your proposed strategy. You will need to use the correct terminology to validate your recommendations as well as indicate your working understanding of each pricing approach.AVOID restating the content of the case materials! Use it only to formulate your own viewpoints, supported by external resources. Be sure to address all components of the case.AS ALWAYS, identify the target market(s) you will be targeting; use industry data to help you determine the values your client, Carmex, should address!