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Question
What pricing strategy will be used to launch a high-end smartphone?
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Solution
High-End Smart Phone: Cost plus pricing strategy.
For a high-end smartphone, a cost-plus pricing strategy is commonly used. This approach is based on the principle that the selling price of a product should cover its total cost and provide a reasonable profit margin. The margin can be either a fixed amount per unit or a percentage of the cost. This margin is referred to as a "mark-up," hence the term "mark-up pricing."
RELATED QUESTIONS
Which pricing strategy involves charging according to their competitors?
Explain the below mentioned pricing strategy:
Skimming pricing strategy
Markup pricing is also called as ______.
Factors which do not influence price determination is ______.
______ determines the sales volume and the profit margins.
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
"Competition based pricing is ideal for non-branded products." Comment.
Give one difference between skimming pricing and 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.
What are various strategies used for pricing a product?
