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प्रश्न
Mention the advantages of cost plus pricing.
State two advantages of Cost plus pricing policy.
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उत्तर १
- Cost plus pricing is the most widely used technique of pricing. It is a safe approach to pricing. It ensures full coverage of costs and helps in achieving a reasonable return on capital employed.
- The method is logical and can be defended on moral grounds. It discourages cut-throat competition in the market.
उत्तर २
The advantages of cost plus pricing are:
- Most widely used technique: It is a safe and straightforward pricing strategy that is simple to understand and use.
- Full coverage of costs: It ensures complete coverage of all costs associated with offering the product (manufacturing and marketing).
- Reasonable return: It contributes to a reasonable return on capital used by including a defined profit margin.
- Logical and defensible: The method is reasonable and morally justifiable because it covers legitimate costs.
- Discourages cut-throat competition: It discourages cut-throat competition in the market by maintaining stable prices.
संबंधित प्रश्न
Explain the below mentioned pricing strategy:
Skimming pricing strategy
______ price refers to the high initial price charged when a new product is introduced in the market.
Setting a price below than that of the competition is called ______.
The pricing strategy involves charging according to what competitors are charging ______.
Give two conditions under which parity pricing is desirable.
Give one difference between skimming pricing and penetrating pricing.
Skimming pricing policy is ideal for introducing a product in the FMCG sector. Justify for or against.
“In a competitive market, parity pricing is the appropriate strategy.” Justify either for or against.
What is penetrating pricing?
| Evergreen Cosmetics is planning to launch a new range of ‘anti-wrinkle creams’ in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion, they could easily be successful in the market. |
- Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
- Describe any two qualities that a salesman selling this product should possess.
- Explain any two tools of sales promotion that can be used here.
