Answer Sheet Marketing Management
Answer Sheet – Marketing Management – EMBA 1st Semester Dec-2014
Student: Shafeeque A Magami
Course: One Year Executive MBA
Register No: N14NOV/959
Answer-1: Explain Pricing Policy.
The policy by which a company determines the wholesale and retail prices for its products or services.
Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Thus pricing is very important in marketing.
Product cost, demand for the product and competition are the three major factors affecting pricing decision. When data about factors are collected, before fixing up the product price by adopting an appropriate pricing method, the existing pricing policy must be reviewed and updated taking into consideration, the changed business environment, if any. The existing pricing policy is to be periodically reviewed and updated in relation to other policies like selling methods, advertising policy and production policy and programme. For example, it may be necessary to reduce the product price to enable fuller utilization of plant capacity, more quickly. One of the reasons for not utilizing the installed capacity fully may be the existing imbalance in the installed production facilities. Such an imbalance may be due to the reason that the capacity of different equipment of a plant does not much. In such cases, the following alternatives are available to the manufacturing organization to rectify the imbalance in the existing production facilities:
To sub-contract part production which is restricting the production.
To install
Student: Shafeeque A Magami
Course: One Year Executive MBA
Register No: N14NOV/959
Answer-1: Explain Pricing Policy.
The policy by which a company determines the wholesale and retail prices for its products or services.
Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Thus pricing is very important in marketing.
Product cost, demand for the product and competition are the three major factors affecting pricing decision. When data about factors are collected, before fixing up the product price by adopting an appropriate pricing method, the existing pricing policy must be reviewed and updated taking into consideration, the changed business environment, if any. The existing pricing policy is to be periodically reviewed and updated in relation to other policies like selling methods, advertising policy and production policy and programme. For example, it may be necessary to reduce the product price to enable fuller utilization of plant capacity, more quickly. One of the reasons for not utilizing the installed capacity fully may be the existing imbalance in the installed production facilities. Such an imbalance may be due to the reason that the capacity of different equipment of a plant does not much. In such cases, the following alternatives are available to the manufacturing organization to rectify the imbalance in the existing production facilities:
To sub-contract part production which is restricting the production.
To install