“Kellogg's” and “General Mills” are two of the dominant breakfast cereal manufactures in the world. Among other advertising campaigns, each company is trying to sign an exclusive contract with an Olympian gold-medal athlete to appear on the cover of a cereal box. The contract is expected to be worth several millions of dollars! How would you expect the pricing behavior of “Kellogg's” and “General Mills” to be? Justify your answer clearly. What do you believe the rationale behind the generous advertising budgets these companies have

“Kellogg's” and “General Mills” are two of the dominant breakfast cereal manufactures in the world. Among other advertising campaigns, each company is trying to sign an exclusive contract with an Olympian gold-medal athlete to appear on the cover of a cereal box. The contract is expected to be worth several millions of dollars! How would you expect the pricing behavior of “Kellogg's” and “General Mills” to be? Justify your answer clearly. What do you believe the rationale behind the generous advertising budgets these companies have

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section19.2: Cvs: Continuous Value Strategy

Problem 3C

See similar textbooks

Similar questions

Explain how a pharmaceutical company's pricing for a non-proprietary drug might change if the objective was: (a) profitability, (b) sales volume, or (c) market share.
Consider the advertisement for a gutter cleaning service shown below. What is the external reference price in this ad? According to the course material, an advertisement could attempt to frame a price as a single loss, as two losses, as a gain and a loss, or as a gain foregone. Which one of those framings is this advertisement attempting to accomplish? Explain your reasoning. If your internal reference price for gutter cleaning service was $125, how would you perceive this advertised price of the company’s gutter cleaning service? Would you perceive it as a single loss, as two losses, as a gain and a loss, or as a gain foregone? Explain your reasoning.
For this discussion, use the following hypothetical scenario as the basis for your response: Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you will charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal. Address the following in your discussion post: Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship. What degree is this type of price discrimination? How will the plan increase revenue? Why will both groups of customers be satisfied with the deal? Why is this a legal form of pricing?
Research your company and determine their pricing on all of their products/services? Are they competitive in their pricing? Are they higher or lower than the competition? What type of pricing strategies do they use (refer to your text)? What do you feel about their pricing decisions? The company I chose is Walmart
George Castilla willingly paid $499 for an Android phone on the day it hit the market, even though it was far more expensive than the cell phones he had bought in the past. He wasn't concerned about the price as he wanted to be one of the first on campus to have this product. Consumers like George are the target of firms using skimming pricing strategies. ( ) a) True b) False Cost, speed, and dependability need to be considered when deciding upon modes of transportation. ) a) True false
Part I: Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on sales. Part II: If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price you calculated in the previous question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 10 percent margin and retailers get a 20 percent margin, both based on their respective selling prices.
Does it make sense for Hammerpress to compete in product categories where the market dictates a price that is not profitable for the company? Explain.
) AJANTA FOOTWEARS LTD. intends to introduce in the market two products of thefollowing characteristics:(i) 'Comfort walk'-shoe for elderly people—considered quite new in the market with ahigh degree of consumer acceptability.(ii) 'Glamour' sandals (with coloured laces crossing) for young LADIES—considered tobe one which is already served by other well known brands.State suitable pricing strategies, together with your valid arguments, for each ofthem separately.
IDENTIFICATION. COMPLETE each statement with the appropriate term by writing your answer on the blank provided after each number. is the net return on marketing divided by the cost of the marketing investment. refer to a pricing strategy wherein a company based its price on competitors' strategies, costs, prices, and market offerings. is a type of distribution channel that has no intermediary levels, that is, the company sells directly to consumers. is the first that a consumer sees in a product. evaluates results of marketing strategies and plans, and takes corrective actions to ensure that the objectives are attained. includes all activities involved in selling goods and services for resale or business use, or further processing. pertains to a company division, a product line within a division, or a single product or brand. 8. 9. 10. 11. The 12. 13. 14.
Can I get assistance with the following Over the past year, you and your friend have decided to embark on a new business venture, you have created a new recipe for baked bread. You are currently paused at the pricing stage, considering that there are no specific guidelines for setting the right price. Outline 5 aspects that you need to consider when developing a price of your new product offering. Justify your answer.
Imagine you are the product manager for Neutrogena’s sun protection product line and your team developed a new type of sunscreen. Which two B2B pricing tactics would you use to promote it? Why?
Pricing has objective and subjective constraints when Marketing Managers must set a value based for the products and services they offer. Under which circumstances in pricing a newly launched product might support skimming or penetration marketing? Create an example which will defend your rationale to all your stakeholders.