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Question
Under which of the following situations is a company not likely to fix a lower price for its product?
Options
When the competition has introduced a substitute product.
If the demand for a product is inelastic.
When the company wants to attain market share leadership.
When the demand for the product is low.
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Solution
If the demand for a product is inelastic.
Explanation:
If demand is inelastic, consumers are not sensitive to price changes, so there’s no need to set a lower price. Thus, the company is not likely to fix a lower price in this case.
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CASE STUDY Tata Motors-owned Jaguar Land Rover on Friday reported a 4.9 per cent declinein retail sales at 88,121 units in the second quarter ended on September 30, 2020. The company had posted retail sales of 92,710 units in the same quarter previous fiscal year, Sales of the Jaguar brand were at 17,340 units in the second quarter as against 19248 units in the year-ago period, down 9.9 per cent. Similarly, sales of Land Rover brand were down 3.63 per cent at 70,781 units as compared to 73,462 units in the same quarter a year ago. While there was improvement in sales in the second quarter, it remained constrained by semiconductor shortages, the company said in a statement. “The company continues to see strong demand for its products, with global retail orders again setting new records in the quarter,” it said adding, as on September 30, 2022, the total order book has grown to 2.05 lakh units, up around 5,000 orders from June 30, 2022. Demand for the new Range Rover, new Range Rover Sport and Defender remained strong, accounting for over 1.45 lakh of the 2.05 lakh orders, it added. |
With reference to above case study, answer the following questions:
- Explain the advantages of training Tata motor employees.
- Analyse and advise on any two suitable promotional mix for Tata motors.
- In the context of above case study, Analyze any five advantages of advertising to manufacturers.
Marketing Mix represents the ______ of an enterprise.
Define the term ‘marketing mix’.
Which factor affects pricing decisions in the marketing mix?
Which of the following statements accurately reflects the relationship between demand and price?
