Commercial Applications
"Pricing is fundamental to all marketing efforts." Give two reasons either for or against.
Marketing Mix
3 Likes
Answer
For the statement — Pricing is indeed fundamental to all marketing efforts. Two reasons:
- Determines sales volume and profit margins — Price determines largely the sales volume and profit margins. Price structure affects the competitive position and market share of the firm. A firm cannot succeed if its prices are too low or too high. Without pricing there can be no marketing as a sale takes place only when the buyer and the seller agree on price.
- Regulates the entire marketing system — Price is the regulatory mechanism by means of which the seller and the buyer come to a mutually satisfactory understanding. The quality of a product, services supplied, channel of distribution and promotional effort all depend greatly upon the price. Therefore, pricing influences all other elements of the marketing mix.
Answered By
1 Like
Related Questions
Evergreen Cosmetics is planning to launch a new range of 'anti-wrinkle creams' in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion they could easily be successful in the market.
(a) Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
(b) Describe any two qualities that a salesman selling this product should possess.
(c) Explain any two tools of sales promotion that can be used here.
What happens to a product in the decline stage of its life cycle?
Mention two advantages and two disadvantages of cost plus pricing strategy.
Soon, you could get a touch screen smartphone that offers a high-definition camera, AI-powered voice assistant, 5G connectivity, and a built-in expandable storage option for around ₹8,000. A Netherlands-based semiconductor firm has launched a new, advanced chipset that promises to make this possible. The company is targeting the growing rural market in India. During the next phase of rapid expansion of mobile communication in rural and semi-urban areas of India, the firm aims to meet the aspirations of first-time smartphone users by providing an enhanced multimedia experience.
(a) Explain the stage of the Company's Product Life Cycle mentioned in the paragraph with the help of a diagram.
(b) Name the service to be offered by the Company in the next phase. Explain any two characteristics of Services.
(c) Suggest any two modern ways of marketing the concept of a product. Explain.