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Product Prices perform various functions in the marketing program. Here are the 4 major roles of price in marketing.
1) Signal To The Buyer - Price offers a fast and very direct way of communicating with your customers. The price is visible to your buyer and provides a basis of comparison between brands. Price also can be used to position your brand as a high quality product.
2) Instrument of Competition - Price offers you a way to quickly attack competitors, or alternatively to position your business away from direct competition.
3) Improving Financial Performance - Because Prices determine financial performance, pricing strategies will impact a business's financial statements both in the short and long term.
4) Marketing Program Considerations - Prices can also substitute for advertising and sales promotion, in addition to being used to reinforce these activities in the marketing program. For example, pricing strategy can be used as an incentive to channel members as the focus of promotional strategy and as a signal of value.
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Role of a Cost Accountant in Manufacturing Industry?
Cost accountant determines the per unit cost of product and guides the management of manufacturing firm about the cost of the product and helps them to set the prices of product according to cost of product rather arbitrary pricing also helps the managment to achieve their target profit effeciently and also guides the governament about the pricing of products so that governaments can maintain prices of products which is in most benifit of the people as a whole.
What is the difference between target costing and cost-plus pricing?
Target Costing: It is the costing process in which company tries to reduces all costs of product to limit the selling price at specific targeted selling price. Cost Plus pricing: It is pricing method in which company uses all costs plus certain percentage of that cost as a profit margin to set selling price.
What do you mean by transfer pricing?
transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,
Outline the reasons for giving cash discounts?
Giving cash discounts helps introduce your product/service to a first time buyer who otherwise might not have tried what you had to offer due to pricing. Sometimes a discount pricing can trigger a buy regardless of the discount and impulse buying is another good reason for offering discounts.
What is the role of an actuary in a life insurance company?
There are two broad roles for actuaries in Life Insurance: i) Product Development/Pricing (Rating) Designing insurance products and assessin the appropriate premium rates and charges to be applied. ii) Financial Management Ensuring the comnpany's solvency by calculating the estimated value of outstanding liabilities allowing for example for future claims, premiums, maturities, cancellations.
What is product mix pricing?
It's the pricing of the product
Single product pricing and mult product pricing?
Single product pricing refers to a single purchase, such as one bottle of Pepsi. Multiple product pricing refers to purchasing more than one product at a time, such as a pallet of Pepsi.
Explain how product form pricing may be a pricing option at Quills?
Explain how product form pricing may be pricing option at Quills?
How do you price product?
pricing a product depends upon the following factors which are1-product quality2-product features3-Product performance4-cost of production5-customer based pricing
What is the difference between cost plus pricing and marginal pricing?
Cost plus pricing is based on full product cost plus desired profit margin to arrive at the product price, while marginal cost plus pricing makes use of the product's total variable cost plus desired profit margin to arrive at the product's price. Marginal cost plus pricing (or "mark-up pricing) is based on demand, and completely ignores fixed costs in arriving at the product's price.
What is pioneer pricing?
Pioneer pricing is setting an initial price for a new product. This is quite essential as it will be the basis of judging how the product does in the market.
Examples of by-product pricing?
a pricing method used in situations where a saleable by-product results in the manufacturing process. If the by-product has little value, and is costly to dispose of, it will probably not affect the pricing of the main product; if, on the other hand, the by-product has significant value, the manufacturer may derive a competitive advantage by charging a lower price for its main product.
What is product bundling pricing?
Product bundle pricing is sellers combine several products at the same price. E.g software, books, CDs.
How is vodafone differ itself in term of product and pricing?
Optional-product pricing is when after the initial pricing of a product is offered additional accessories are offered for that product at a price. This is a pricing option that has gained popularity over the years. Many companies offer a savings on bundled accessories with the purchase of product. Some companies may include cable companies, car companies, cell phone companies, banks, etc.
What is hul product pricing?
pepsodent price
What is the example for product form pricing?
sardines
What is meant by retrograde pricing?
Using retrograde pricing helps to determine if exporting a product will be profitable or not.
