Business Essentials (11th Edition)
Business Essentials (11th Edition)
11th Edition
ISBN: 9780134129969
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Concept explainers

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Chapter 12, Problem 12.12A
Summary Introduction

To explain: The product mix of the new venture.

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First review the topics below and select one. Once selected, include the concept, a description of the concept, and what about the concept you understand and what it is about the concept that can be confusing.  How pricing objectives should guide strategy planning for pricing decisions. Setting the price level for a product in the early stages of the product life cycle. Variations of a price structure, including discounts, allowances, and who pays transportation costs. The role of price in obtaining a competitive advantage by offering target customers superior value. The legality of price-level and price-flexibility policies. How most wholesalers and retailers set their prices by using markups. Advantages and disadvantages of average-cost pricing. How to use break-even analysis to evaluate possible prices. The advantages of marginal analysis and how to use it for price setting. Demand-oriented factors that influence price setting. Elements of the marketing strategy planning process…
List  the general approaches to pricing. Select examples of products that you regularly use.        i.          Notice the price of each of these items For each item,      ii.          State the main benefits you are looking for in using the product.     iii.          Does the price communicate the total benefits sought?     iv.          Does the product’s price suggest good value?     v. Do you think the manufacturer or retailer is overcharging or         undercharging consumers for the product?
When can you use different pricing strategies and what are their suitable product categories? Instruction: -give examples for each type ? -Answer in one page. -answer the question about only the List of 7 strategies are listed in the image.
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