Principles of Marketing, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134461526
Author: Philip T. Kotler, Gary Armstrong
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 10, Problem 10.12AC
Summary Introduction
Case summary: In the year 2015, Company TP wound up amidst a disputable issue when it acquired a current medication Drug DP from another pharmaceutical organization. Drug DP has been around for a long time and is utilized to treat hazardous parasitic contaminations in AIDS and malignant growth patients. In the wake of gaining Drug DP, Company TP’s CEO Person MS immediately raised its cost from the past $13.50 per pill to an astounding $750 per pill.
To discuss: The issues that distress the profitability in the industry.
Characters in the case: Country U, Company TP, Person MS and Drug DP.
Consumer products likewise alluded to as the completed goods that are purchased by people or family units for individual use. As such, consumer products are products that are purchased for utilization by the average shopper.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is marketing mix? In your opinion, which of the marketing mix elements is more critical in which period of the product life cycle for a highly complex, totally new product?
2. Discuss the growth strategies. If your company/product is experiencing threat of substitute products or direct competitors, which of the growth strategy do you think are less suitable, why?
3. Among the three major functions of an organization, finance has two distinct tasks. What is the function/ role of finance department in organizations and why is this department important? What are the different methods that a start-up can reach funding, please describe and discuss advantages and disadvantages of internal and external funding methods.
4. Describe the concept of guerrilla marketing. Why is guerrilla marketing particularly suitable for entrepreneurial firms?
Got your eye on a new premium 32-inch Samsung television? Well, you better not purchase it in December—that’s when the price was highest on Amazon.com ($500 versus $400 in November or February). Most consumers know that prices fluctuate throughout the year, but did you know they even fluctuate hourly? You probably can’t keep up with that, but there’s an app that can. Camelcamelcamel is a tool that tracks Amazon’s prices for consumers and sends alerts when a price hits thesweet spot. This app allows users to import entire Amazon wish lists and to set desired price levels at which emails or tweets are sent to inform them of the prices. All of this is free. Camel makes its money from an unlikely partner—Amazon—which funnels price data directly to Camel. Camel is a member of Amazon’s affiliate program, kicking back 8.5 percent of sales for each customer Camel refers. It would seem that Amazon would want customers to buy when prices are higher, not lower. But the online behemoth sees…
Got your eye on a new 32-inch Samsung television? Well, you better not purchase it in December—that’s when the price was highest on Amazon.com ($500 versus $400 in November or February). Most consumers know that prices fluctuate throughout the year, but did you know they even fluctuate hourly? You probably can’t keep up with that, but there’s an app that can. Camelcamelcamel is a tool that tracks Amazon’s prices for consumers and sends alerts when a price hits the sweet spot. This app allows users to import entire Amazon wishlists and to set desired price levels at which emails or tweets are sent to inform them of the prices. All of this is free. Camel makes its money from an unlikely partner—Amazon—which funnels price data directly to Camel. Camel is a member of Amazon’s Affiliate program, kicking back 8.5 percent of sales for each customer Camel refers. It would seem that Amazon would want customers to buy when prices are higher, not lower. But the online behemoth sees this as a way…
Chapter 10 Solutions
Principles of Marketing, Student Value Edition (17th Edition)
Ch. 10 - Prob. 10.1DQCh. 10 - Prob. 10.2DQCh. 10 - Prob. 10.3DQCh. 10 - Prob. 10.4DQCh. 10 - Prob. 10.5DQCh. 10 - Prob. 10.6CTECh. 10 - Prob. 10.7CTECh. 10 - Prob. 10.8CTECh. 10 - Prob. 10.9ACCh. 10 - Prob. 10.10AC
Ch. 10 - Prob. 10.11ACCh. 10 - Prob. 10.12ACCh. 10 - Prob. 10.13ACCh. 10 - Prob. 10.14ACCh. 10 - Prob. 10.15VCCh. 10 - Prob. 10.16VCCh. 10 - Prob. 10.17VCCh. 10 - Prob. 10.18CCCh. 10 - Prob. 10.19CCCh. 10 - Prob. 10.20CCCh. 10 - Prob. 10.21CCCh. 10 - Prob. 10.22CCCh. 10 - Prob. 10.23MMLCh. 10 - Prob. 10.24MML
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.Similar questions
- Suppose you have been asked by a food company to design an experiment that examines consumers’ purchase intentions toward their product (i.e., cereals), as a result of their recent pricing strategies (i.e., low price, high price) and product quality (i.e., organic offerings, nonorganic offerings) strategies. Basically, they would like to know the best combination of product quality offering and pricing strategy that yields the highest levels of consumers’ purchase intentions. How would this experiment look like? When working on this assignment, you should consider the following: Subjects: The experiment participants should be customers who consume significant breakfast cereals and are diverse in terms of income group, age group and work type. Experimental conditions: Independent variables – quality (categorical), price Dependent variable – Propensity to pay Effects: The main effect shall be impact of independent variables on propensity to pay such as how much affect does quality or…arrow_forwardImagine that a market research interviewer asked you to report the price you would expect to pay for some consumer items. For each of the following items, give the price or price range you would expect to pay. Then describe the role (if any) played by each of the three sources of price-level knowledge discussed, in arriving at each estimate. (a) A 500 ml bottle of Head and Shoulder shampoo (b) An oil change at Shell Gas Station (c) A pair of Adidas sneakersarrow_forwardE3 1. Think of a product that you ought to sell as an entrepreneur/ businessman in the future. Describe the product.2. How much price do you ought to charge on your product?3. What are your reasons for your price? Justify the price of your product based on the input cost, value of the product and customer perception.arrow_forward
- Go on either Ulta’s or Sephora’s website and do one of the following: Find the highest-rated anti-aging product Find the best-selling anti-aging product Find the most expensive anti-aging product Answer the following questions: What’s the price per ounce? What the average review on the product? What are the anti-aging ingredients in the product?arrow_forward1 ) What are the four principal concerns of investors? 2) What are the primary concerns of bankers/lenders when considering a business plan? 3) What is product bundle pricing? 4) What is the importance of pricing strategies ? 5) what is the positioning of the venture in the value chain ?arrow_forwardMarketing mix(toothpaste) choose a product that you have purchased recently. Research and investigate this product on the Internet and in the marketplace. Evaluate the marketing mix (product strategy, pricing strategy, distribution strategy, and promotion strategy) used by the manufacturer of this product. At a minimum, consider the following questions in your investigation: Product Strategy : * In what category of consumer products (convenience, shopping, or specialty) does this product fall? Why? * At what stage is this product in the product life cycle (introductory, growth, maturity, decline)? Why? * What role, if any, did branding (brand name, symbol, slogan, etc.) play in your selection of this product? Why? * What role, if any, did packaging play in your selection of this product? Why? * Evaluate the quality of the product in terms of quality level and product consistency. Promotion Strategy : * Identify the various media used to promote/advertise the product. * Did other…arrow_forward
- You're in charge of pricing Phonic's product for its launch early next year. Review the SWOT analysis you previously prepared as well as Phonic's competitive environment, targeting strategy, and product positioning. Now continue working on your marketing plan by responding to the following questions. * What should Phonic's primary pricing objective be? Explain your reasoning. * Are smart phone customers likely to be price sensitive? What are the implications for your pricing decisions? * What price adaptations (such as discounts, allowances, and promotional pricing) should Phonic include in its marketing plan?arrow_forwardChoose a pharmaceutical product that is on the market today and answer the following by doingsome research about the drug online. a. Explain what the drug is and what it is used for, and find an estimate of its price. Are thereavailable substitutes for this drug for its primary uses? b. Look online to see if you can find estimates of the markup above costs on the pharmaceuticalyou have chosen. If you cannot find this, see if you can find information on the history ofmarkups of that pharmaceutical (often times you may not know the markup above cost, butcan see that the drug has seen some % markup in price since it was introduced – this growth inthe price will suffice as a proxy for markup above costs of production). c. Based upon our discussion of the relative price setting power of different goods (use the LernerIndex), how does your understanding of the use of the good and the available substitutesexplain the markups you observe on this drug?arrow_forward5. Direct-to-consumer businesses have had mixed success. That is, while the model has succeeded in some categories, it has not worked in others. Can you identify reasons why? Which product categories may be more suited for direct-to-consumer business model?arrow_forward
- The Services industry is one of the most affected by the COVID-19 outbreak, and to be able to hype up the industry, think of new or innovative ways on how to help boost it. With given travel agency in Philippines called: Creative Travel Agency Discuss the proposed pricing strategies of your chosen company and compare them with their direct and indirect competitors. Choose 1 direct and 1 indirect competitor. Do not forget to cite your references/websites.arrow_forwardImagine that you are the newly hired brand manager for a restaurantthat is about to open. Both the local newspaper and a gourmet foodmagazine recently ran articles about your new head chef, calling her oneof the best young chefs in the country. In response to these positivereviews, the company wants to position its brand as a premium,gourmet restaurant. Your boss asks what price you should charge forthe chef’s signature filet mignon dish. Other restaurants in the areacharge around $40 for their own filet offerings. What steps might youundertake to determine what the new price should be?arrow_forwardDescribe the three forms of efficient markets hypothesis. Specify which of the three forms allows for generation of alpha using technical analysis.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles Of MarketingMarketingISBN:9780134492513Author:Kotler, Philip, Armstrong, Gary (gary M.)Publisher:Pearson Higher Education,
MarketingMarketingISBN:9781259924040Author:Roger A. Kerin, Steven W. HartleyPublisher:McGraw-Hill Education
Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Marketing: An Introduction (13th Edition)MarketingISBN:9780134149530Author:Gary Armstrong, Philip KotlerPublisher:PEARSON
Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning
Principles Of Marketing
Marketing
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Pearson Higher Education,
Marketing
Marketing
ISBN:9781259924040
Author:Roger A. Kerin, Steven W. Hartley
Publisher:McGraw-Hill Education
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing
ISBN:9780134149530
Author:Gary Armstrong, Philip Kotler
Publisher:PEARSON
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning