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Question
"Competition based pricing is ideal for non-branded products." Comment.
Solution
Competition based pricing is not ideal for non-branded products as such products differ from one another and there is less competition. In case of branded products competition is intense and competition based pricing is ideal.
RELATED QUESTIONS
______ price refers to the high initial price charged when a new product is introduced in the market.
______ is the most common method used for pricing.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
The main aim of penetrating pricing is to ______.
______ 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.
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| 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.
Discuss the pros of Penetrating Pricing Policy.
