a) When companies introduce new products into the market, they have two broad pricing strategies: market-skimming pricing and market-penetration pricing. Distinguish these two strategies. (10 marks)
b) When would price cuts and price increases be necessary?
c) Why do businesses use cash discounts? Explain.
Nadeera Enterprise is a well known producer of cookies in Malaysia. The company intends to produce a new chocolate chip cookies.
a) Discuss the three (3) general pricing approaches Nadeera Enterprise can adopt in pricing this product.
b) Explain how Nadeera Enterprise can adjust their basic prices to account for various customer differences and changing situations.
a) When setting prices, the company must consider its external environment. Describe four (4) external environmental factors and how they affect business. (10 marks)
b) When would price cuts and price increases be necessary? Explain each of these clearly.
a) Distinguish the differences between the two (2) types of pricing strategies that could be implemented when pricing new or innovative products.
b) When would price cuts and price increases be necessary for a company? (9 marks)
a) As a marketer for your products, setting an optimum price will be one of your crucial decisions. Explain three (3) external factors that could affect your decision in price setting.
b) You are producing a new product line for your brand of hair care called 'Shampoo'. Describe two (2) suitable product mix pricing strategies that can be used to price your product line.
c) Why do businesses use cash discounts?
a) Companies introducing a new product can choose between two broad pricing strategies....