Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
Related questions
Question
Just ANswer the Number 2!
Here is the Answer for the Number 1.
Markup price: - It is defined as the difference between cost price to make building and the price charged from customer. Markup price is simply a price that is added to actual price of construction.
- Any building or industrial contractors prefer markup pricing method because it sets prices for goods which will give profits to contractors. It is very useful for products whose price varies frequently.
- Markup pricing strategy is easy to calculate reason behind that is it consists simple equation which eliminates confusion in pricing the products. Also, it is very fast and error free with respect to other methods.
- With the help of markup pricing method contractors can recover labor or other price easily.
- Markup price is useful for bulk pricing. For example- One has to do pricing of hundreds products then just set a profit percentage on each products which will save the decision making cost.
![Exercises
Name:
Section:
Discussion
Date:
1.
Markup pricing is typically used by building or industrial contractors.
Give an explanation as to why this would be their preferred pricing
method.
2.
Give an example of a product that has a price that you find difficult to
classify as being high or low. Explain why.
Give an example of a product that challenges the market leader by
offering a slightly lower price. If you were to raise its price higher than
the market leader's, what price would you recommend and what do you
think would its implication be?
3.
Market leader:
Product:
Market leader's price:
Recommended price:
Implication:
Chapler 6- Pricing Strategies 209](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53a5e557-a841-416d-b0f8-729a061649ed%2F99ed1e1d-e298-40b5-9318-7b82857d50ea%2Fm85j3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercises
Name:
Section:
Discussion
Date:
1.
Markup pricing is typically used by building or industrial contractors.
Give an explanation as to why this would be their preferred pricing
method.
2.
Give an example of a product that has a price that you find difficult to
classify as being high or low. Explain why.
Give an example of a product that challenges the market leader by
offering a slightly lower price. If you were to raise its price higher than
the market leader's, what price would you recommend and what do you
think would its implication be?
3.
Market leader:
Product:
Market leader's price:
Recommended price:
Implication:
Chapler 6- Pricing Strategies 209
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