Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Chapter 12, Problem 12.13A
Summary Introduction
To explain: The new product development and the anticipated lifespan of the market.
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How likely is the sales manager will be successful in the short term in cut the price as strategy to stimulate interest and convince other business operators to buy products from our company?
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?
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 promotional tools (sales promotion,…
Chapter 12 Solutions
Business Essentials (12th Edition) (What's New in Intro to Business)
Ch. 12 - Prob. 12.1QRCh. 12 - Prob. 12.2QRCh. 12 - Prob. 12.3QRCh. 12 - How is the concept of the value package useful in...Ch. 12 - Prob. 12.5QACh. 12 - Prob. 12.6QACh. 12 - Prob. 12.7QACh. 12 - Prob. 12.8QACh. 12 - Prob. 12.9AECh. 12 - Prob. 12.10AE
Ch. 12 - Prob. 12.11ACh. 12 - Prob. 12.12ACh. 12 - Prob. 12.13ACh. 12 - Prob. 12.14ACh. 12 - Prob. 12.15ACh. 12 - Prob. 12.16TECh. 12 - Prob. 12.17TECh. 12 - Prob. 12.18TECh. 12 - Prob. 12.19TECh. 12 - Prob. 12.20TECh. 12 - Prob. 12.21EECh. 12 - Prob. 12.22EECh. 12 - Prob. 12.23EECh. 12 - Prob. 12.24EECh. 12 - Prob. 12.25CCh. 12 - Prob. 12.26CCh. 12 - Prob. 12.27CCh. 12 - Prob. 12.28CCh. 12 - Prob. 12.29CCh. 12 - Prob. 12.30CCh. 12 - Prob. 12.31CCh. 12 - Prob. 12.32CCh. 12 - Prob. 12.33C
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- Does "value" mean the same thing as "low price"? How do these concepts differ? Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value? Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each. (4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.arrow_forwardExplain how to sell your product with a price strategy and with a value-added and give short explanation from each strategy and examplearrow_forwardHow does value pricing strategy affect the company's performance and how they benefit from this?arrow_forward
- 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.arrow_forwardWhat Is the man (most Important) way that Cost-Based Pricing is different from Customer Value- Based Pricing? Please use no more than 2 bullet points for your answer.arrow_forwardreview the topic below and include the concept, a description of the concept, and what about the concept you understand and what it is about the concept that is confusing to you. -The advantages of marginal analysis and how to use it for price setting.arrow_forward
- Select a basis for pricing your product (cost, demand, and/or competition). How will you know when it is time to revise your pricing strategy?arrow_forwardExplain why a product or service’s contribution (selling price minus variable cost) is an important element in developing a marketing strategy, giving examples to illustrate your answer.arrow_forwardAssume you are an entrepreneur of a new home technology product, how you can set your pricing policy? What are the main considerations in the determination of the price?arrow_forward
- What is the opportunity for a lorry rental company? What is the Product Overview for a lorry rental company? What are the Key Participants for a lorry rental company? What is the Pricing for a lorry rental company?arrow_forwardFirst 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…arrow_forwardPurchasing department can determine the right prices by: Select one: Using cost structure of the product. Using the system of selling. All answers are correct. Price discrimination.arrow_forward
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