1. Describe and assess the internal and external factors which affected AirAsia’s pricing strategy. Internal factors affecting pricing include the company’s marketing objectives‚ marketing mix strategy‚ costs‚ and organization considerations. Marketing objectives before setting a price‚ the company must decide on its strategy for the product. If the company has selected its target market and positioning carefully‚ then its marketing mix strategy‚ including price‚ will be fairly straightforward
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Chapter8: pricing. April 2006 QUESTION 3 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? (10 marks) c) Why do businesses use cash discounts? Explain. (5 marks) April 2007 QUESTION 2 Nadeera Enterprise is a well known producer of cookies in Malaysia. The company intends
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taxes that consumers have to pay for a good or service. True False 2. The key to successful pricing is to match the product with the consumer’s perception of value. True False 3. Price is the only part of the marketing mix that does not generate costs. True False 4. If Brandon buys hats for his store for $5 each and sells them for $15 each‚ he is using a keystoning pricing strategy. True False 5. Rarely is the lowest-price product offering the dominant brand in a given
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Q1: Apple faced with two main pricing decisions for its range of iPhones. The first one is a skimming price decision and the second one is a penetration pricing decision. 1. Skimming price decision When Apple first launched the new iPhone 3GS‚ it made a skimming price decision which means it aims to sell to the top of the market and focuses on maximizing profits in short term so it could recover the research and development costs. 2. Penetration pricing decision As the iPhones have moved
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PowerPoint to accompany Chapter 7 Market segmentation‚ targeting and positioning Philip Kotler‚ Stewart Adam‚ Linden Brown & Gary Armstrong Kotler‚ Brown‚ Adam & Armstrong: International Marketing 3e © 2006 Pearson Education Australia Markets Chapter objectives 1. Explain market segmentation‚ and identify several possible bases for segmenting markets. 2. Distinguish between the requirements for effective segmentation: measurability‚ accessibility‚ substantiality‚ actionability. 3. Outline
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more important in buyer-choice behavior in recent decades. Price is also one of the most flexible elements of the marketing mix. Do you agree ? Unlike product features and channel commitments‚ price can be changed very quickly. At the same time‚ pricing and price competition is the number-one problem facing many marketers. SETTING THE PRICE – Let us now attempt to understand the process of how firms set prices. When does a firm set prices? A firm must set a price for the first time when it develops
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Business and management RESEARCH QUESTION: How efficient would it be for BP Mwanza‚ Tanzania to introduce pricing strategies such as penetration pricing to drive out their competitors in Mwanza‚ Tanzania. Candidate name: Zafar Mohamed Iqbal Abdullah Osman IB candidate number:
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Do you believe Walmart is engaging in predatory pricing with its $4 generic drug program? Why or why not? "Predatory pricing is the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market. Once competitors have been driven out‚ the firm raises its prices. This practice is illegal under the Sherman Act and the Federal Trade Commission Act. To prove predatory pricing‚ the Justice Department must show that the predator—the
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steps: • Selecting the pricing objective: • Determining demand: • Estimating costs: • Analyzing competitors’ costs‚ prices‚ and offers: • Deciding whether to use price as a competitive strategy: • Selecting a pricing method (such as markup pricing‚ target return pricing‚ value pricing‚ and going-rate pricing): • Selecting the final pricing: However‚ the theory must be modified by the influence of other factors‚ such as the health care organization’s brand strength‚ its pricing policies‚ government
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Market-skimming pricing: two examples came to my mind when I saw this concept‚ Samsung and Apple. As I know that‚ Samsung often set an extremely high price when they release a new cellphone‚ after few months the price could drop nearly 40% or even more. But IPhone never change its price. Market-penetration pricing: this often happened when a company first enters a new market. It could help to gain more customers and set a good impression that this company’s product is worth to buy. Product-line pricing: the
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