Mini Sim 02 - Wk 3

A business has significant costs in the development stage of a new product prior to launch as well a high number of decommissioning costs at the end of the product’s life. Which method of costing would be most suited for the business to ensure that all of the costs associated with the product are considered in arriving at a pricing strategy to help achieve profitability over the product’s life? A Activity based costing B Target costing C Marginal costing D Total lifecycle costing

Value-based pricing is the reverse process of Select one: O a. good-value pricing b. cost-based pricing c. cost-plus pricing d. variable cost pricing

Marketers may choose from various pricing strategies when selling a product or service.   a)  Identify and briefly explain five pricing strategies.   b)  What factors should be considered before selecting the best pricing strategy?

short answer Moving on from Product to Price, review the following pricing strategies. A skimming strategy prices the product high to make big profits while there’s little competition. A penetration strategy uses low price to attract more customers and discourage competitors. Demand-oriented strategy starts with consumer demand rather than cost. Competition-oriented strategy is based on all competitors’ prices. Price leadership strategy attempts to force all competitors to follow the pricing strategy of one or more dominant companies within an industry. What pricing strategies do you see being emphasized in marketing activities today? Give a specific example of a product that is obviously priced according to one of the pricing strategies listed above.

Discuss the difference between the two (2) types of pricing approaches when launching a new service or product (Market Penetration & Market Skimming).

Directions: Create a pricing scheme of certain product. Search for a product you think that the price is not reasonable. Create your own price scheme in able to meet the expectation of the buyer and able to meet also the good customer relationship.

Discuss the following the Ebay company, Select a single product for your firm and set a price according to multiple pricing approaches.   Cost-based: Use best estimates for materials and labor costs. Use a reasonable percentage of price as an estimate for all overhead expenses – usually from 10% to 50%.   Economic Value to Customer: Describe how you determine this price level; then do so.

What is meant by pricing? Describe any three strategies that can be done by firms if they do not want to increase the price of a product.

a) Identify and describe this mobile phone’s (any mobile phone) pricing objective (pricing objective has 6 elements including Survival, Maximum current profit, Maximum market share, Maximum market skimming, Product-quality leadership, and other objectives). b) Identify two places (e.g., online stores, telecommunication companies, etc.) where this phone can be purchased. Compare their offers (price, package, trade-in option, payment plan, etc.) and explain in detail why this phone.(maximum 300 words)

Directions: Create a pricing scheme of certain product. Search for a product you think that the price is not reasonable. Create your own price scheme in able to meet the expectation of the buyer and able to meet also the good customer relationship. Defend your answer

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…

It is recommendable that the Company uses product and pricing strategy, which can provide a twin approach (Koester, 2011). The strategy should focus on ensuring smooth entry of a new product within a targeted marketplace as well as strengthening prices as the product continue to establish itself within the product life cycle. To this end, it is recommendable that the company uses introductory pricing strategies to facilitate a smooth entry.What is your understanding of this paragraph? What is Nike recommended to do from this?

29)focuses on consumers' perceived value as the major factor of pricing, Select one: a. Promotional pricing b. Value-added pricing c. Cost-based pricing d. Value-based pricing