Pricing is one of the most important elements of the marketing mix as it is the only mix‚ which generates a turnover for the organization; the remaining 3p’s are the variable cost for the organization. It costs to produce and design a product; it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship (Constantinides‚ 2006). Pricing a product too high or too low could mean a loss of sales
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1. What is “kamikaze pricing”? Kamikaze pricing is an extreme form of penetration pricing. “Kamikaze” is a reference to World War II Japanese dive bomber pilots who would sacrifice their lives by crashing their airplanes‚ heavily loaded with explosives‚ onto enemy ships. Kamikaze pricing happens when the reasoning for penetration pricing is flawed because marketers wrongly assume lower prices will increase sales. However‚ in the business world‚ the continuous pursuit of increasing sales by lowering
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The Pricing Strategies of Fast Foods vs. Restaurants Dateesha L. Cavin Webster University 28 April 2011 Abstract This paper explores the difference in pricing strategies of Fast Food vs. Restaurants. Fast food restaurants compared to sit-down restaurants are exceedingly popular because they prove to fit comfortably in our active‚ modern day lives. Today‚ many people eat fast food instead of cooking meals at home. The reason for this is that many of us are constantly busy with our daily responsibilities
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Evolution had been viewed over 65‚000 times‚ and received an average rating of 4.5 out of 5. To my mind‚ the Dove campaign is one of the most sophisticated marketing campaigns out there. Dove recognizes that a brand needs to stand for something and does so in a way that seems genuine‚ not contrived. But in taking on the glamour of the cosmetics industry‚ the people behind the campaign have taken it to a new level. The cosmetics industry‚ among others‚ drives sales by creating a fantasy. The advertising
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Pricing objectives and pricing methods in the services sector George J. Avlonitis and Kostis A. Indounas Department of Marketing and Communication‚ Athens University of Economics and Business‚ Athens‚ Greece Abstract Purpose – The purpose of this research paper is to explore the pricing objectives that service companies pursue along with the pricing methods that they adopt in order to set their prices. Design/methodology/approach – An extensive review of the literature revealed the complete
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very popular with the youngest grommets to the oldest waterman enjoying the thrill of riding waves. The best surfing to be found in New England has been reported to be just south of Boston. Rhode Island‚ "The Ocean State"‚ receives the best swell‚ or surf-able waves‚ of the New England states and has a thriving surfing community along its forty mile coast (Magic Seaweed). With so many great breaks for longboarding in the Rhode Island region‚ like East Matunuck State Beach and Narragansett Beach‚ it
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environment. This is indeed the case with its implementation of its pricing strategy‚ which is one of localisation rather than globalisation. Table II illustrates the comparative Big Mac prices (flagship brand of McDonald’s) from around the world. It succeeds in highlighting the point that McDonald’s has had to come up with different pricing strategies for different countries. More importantly‚ rather than just having a different pricing policy for the Big Mac in these listed countries‚ McDonald’s has
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Table of Contents Abstract 2 Emerging Markets 2 State of the Surf Industry 4 Barriers to Entry 6 Drivers of Surf Economy 8 Development of Surf Industry in Emerging Market 8 Case Analysis: Sri Lanka 10 Drivers of Surf Industry Development 12 Social Cultural Impacts and at-risk youth 13 Conclusion 15 Abstract This paper will explore the concept of emerging markets‚ and the profit potential of multinational enterprises
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MARKETING Session III: Pricing Policy Question I: Why is pricing policy so important in the marketing mix of a product ? What is pricing? Pricing is the process of determining what a compagny will receive in Exchange for its products. Pricing strategy is important for several aspects in the compagny wich are: Survival : short-term objectives are set in order to survive Profit :the objective is to maximise profits Return on investment : prices are set to attain a specified return on
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The responses of China and Japan towards western penetration in the nineteenth century were completely different. The Chinese were absolutely against it and became an isolated nation. This was different that the Japanese who viewed it as somewhat of a challenge and accepted it. The initial response from the Chinese towards western penetration was the practice of isolationism. The country resisted the West and it’s modern concepts and cut off contact with them completely. This hurt the economy
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