Marketing: An Introduction (13th Edition)
13th Edition
ISBN: 9780134149530
Author: Gary Armstrong, Philip Kotler
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 9.18MML
Summary Introduction
To discuss: The cost-plus pricing method and determine the reason for the marketers to use it even though it is not the best method for setting prices.
Introduction:
Cost-plus pricing method is the common method used to determine the price of the product. In this method, the normal mark-up price is added to the product cost. This method is otherwise termed as mark-up pricing.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Explain how has Radant Beauty used the elements of its marketing mix to meet the needs and wants of its target market (Generation Me).
Your answer must clearly indicate the specific activities that Radiant Beauty undertook under the headings of:-
PRICE (The answer should go beyond merely regurgitating the actual price quoted in the case and clearly explain the pricing strategy that the company utilized.
CONSUMER BENEFITS
Notes:
Bother answers must be relevant to the case and must be based on sound marketing principles and the insights you gleaned from analyzing the case.
• What is the role of price in an organization's
marketing plan?
1. Profit
2. Sales
3. Market share
4. Survival
5. Social Responsibility
Explain how has Radant Beauty used the elements of its marketing mix to meet the needs and wants of its target market (Generation Me).
Your answer must clearly indicate the specific activities that Radiant Beauty undertook under the headings of PRICE and CONSUMER BENEFITS
Notes:
The answer should go beyond merely regurgitating the actual price quoted in the case and clearly explain the pricing strategy that the company utilized.
Answers must be relevant to the case and must be based on sound marketing principles and the insights you gleaned from analyzing the case.
Chapter 9 Solutions
Marketing: An Introduction (13th Edition)
Knowledge Booster
Similar questions
- What types of retailers offer pricing objectives that are a good fit for ourbrand?arrow_forwardThe plan should describe the marketing mix elements (product, price, place, promotion).o Product Strategy – you may use the three levels of the product as a basis to explain the product features, attributes, and/or packaging and others.o Pricing strategy -o Place Strategy – distribution channel and physical distribution activitieso Promotion Strategy - Marketing communication tools and mediums Product : iBasket - Guopeng Liang Guopeng Liangarrow_forwardWhy is location-based marketing so attractive to marketers? Why are in-app ads becoming so important to marketers? Research has shown that many consumers use the Internet to investigate purchases before buying, which is often done in a physical storefront. What implication does this have for online merchants? What can they do to entice more online buying rather than pure research? What pricing strategy turned out to be deadly for many e-commerce ventures during the early days of e-commerce? Why? Is price discrimination different from versioning? If so, how?arrow_forward
- Study how printed-word royalties work and learn more about the cost and pricing of words. Write a report on what you learned. (AACSB: Written and Oral Communication; Reflective Thinking)arrow_forwardQUESTIONS ARE ABOUT THIS VIDEO:arrow_forwardExplain how retailers can be classified based on the amount of service offered and give an example of each retailer type. (AACSB: Written and Oral Communication; Reflective Thinking)arrow_forward
- McDonald’s sells Happy Meals for as low as $2.50 and Value Meals for as high as $5.50. How would you describe this pricing strategy? What segmentation variables are being used?arrow_forwardImagine that you are the newly hired brand manager for a T-shirt company whose new line is about to come out. Because of a major fashion magazine’s very positive review of the line, the company wants to reposition the brand as a premium youth (teens & young adults) brand. Your boss asks what price you should charge for the new T-shirt line. The current line, considered mid-range retail, is priced at $20. • Describe what method would you use? Why? • What do you think is the right price? How did you arrive at that? You are welcome to do some online research. Thank you for helping me!arrow_forwardBecause of the internet, local retailers now also find themselves competing | with international retailers such as Amazon and Alibaba despite these international stores having to add shipping costs and duties. Assess what will make a consumer decide to choose a local distributor rather than an international one. Is it all about the price? Explain.arrow_forward
- Explain working of following e-business models – using examples of different companies.(d) Pricing Model (Name-Your-Price vs. Comparison Pricing)(e) Other Models (Bartering vs. Rebate vs. Free Offering)arrow_forwardGot 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…arrow_forwardWhat are the traditional approach to pricing a) Marketing b) Cost-plus c) market based d)Value basedarrow_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