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- What are the possible problems that will be encountered if a firm uses | perceived-value pricing and lets the market determine the price of its products?The role of value and price communications is to protect your value proposition from any of the following except: a. competitive encroachment b. improve willingness to pay c. acquire the product in the desired location d. increase the likelihood of purchaseAre there any significant features of the pricing of your product? For example, is there evidence of any of the following 1 Specific firms in the market being price makers or price takers 2 Price discrimination (e.g. by age, income group or customer location)
- Based on the scenario, how can you define the importance of the price of a product in attractingcustomers?4. Blistex was reviewing price and promotion alternatives for two products in its line: Regular Blixtex and Sensitive Lip Blistex. The price and promotion alternatives for the two products by their respective brand managers include the possibility of using additional promotion or a price reduction to stimulate sales volume. Here's what we know. Blistex Regular Blistex Sensitive Lips 2.00 Unit Price Unit Variable Costs 0.25 Unit Contribution 75 $1.00 1.40 .60 Unit volume 1,500,000 1,000,000 Both brand managers are considering either a price reduction of 5% or an incremental increase of $100,000 in advertising. 1. What absolute increase in sales units and dollar sales will be necessary to recoup the incremental increase in advertising expenditures for Regular? How about for Sensitive Lips? 2. What is the absolute increase in unit sales and dollar sales will be necessary to maintain the level of total contribution dollars if the price of each product is reduced by 5%If you believe in your product and understand its unique 2 points features, it should not be necessary to prepare for price resistance. O True O False
- 5 Notice in the marketing simulation with regard to cost of production, as the number produced (sold) increases the cost per unit decreases at an increasing rate. What is not a factor? economies of scale experience/learning curve volume discounts selective distribution Sales 7 Determining whether you use a rebate falls under what marketing strategy decision? Price Product Place Promotion Price and promotion 9 Everyone wants more for less. A lower price for the same goods is a powerful magnet for customers. What is the concern? It is counter to market penetration strategy Company value Support niche marketing Is not valuable to all consumers All are correct All are incorrect 11Selecting the number of sales personnel for training and therefore available for services falls under what marketing strategy decision? Price Product Place None are correct 15When your desired consumer compares features such as costs and benefits of your laptop, it represents which marketing concept? positioning…3)Briefly explain the types of consumer buying behaviour. What type of consumer buying behaviour would you most likely use when deciding on: (10 Marks) a) Picking a restaurant for dinner b) Buying a TV20- Which one of the following is the benefit for setting manufacturer’s suggested retail price? a. Drive the competitors b. Reduce retail price competition c. Raise prices and earn profits d. Increasing the value of the product
- What are Functional discounts:?What value(s) is/are promised in the value proposition in Fig. 3.1?4. Boat Lifestyle has developed Bluetooth noise-canceling ear buds for the premium segment. Product specifications are closer to the air pod. You have been given the task of coming up with the pricing for the product. How would you approach it? Explain your steps with appropriate reasons. State the assumptions clearly.