12.2 Price /devising marketing strategy

Question 1

Which costs are included in the term price?

List 5!

Answer 1

1. ) producing
2. ) branding
3. ) packaging
4. ) supply chain
5. ) marketing

Question 2

In an ideal world should the price be in balance?

What does that mean?

Answer 2

Yes – the price should cover a reasonable profit and the amount which numerous consumers are willing to pay.

Question 3

Which strategy could be used for entering a market?

Answer 3

Penetration strategy

e.g. lowest price limit for a shorter time period

Question 4

1. ) Is the price strongly influencing the consumers decision?
2. ) Use an example to illustrate it!

Answer 4

1.) Yes

2. ) For low involvement consumer = Higher price = higher quality….
3. 99 more attractive than 10