MKT 300 Questions and answers well graded and answered

MKT 300 Questions and answers well
graded and answered
Price - ANS✅✅Value you exchange for the benefits of having or using the product/service



Marketing Objectives (4) - ANS✅✅- Maximize Profit

- Gain Market Share

- Infer a level of quality

- To Survive



Internal factors that affect pricing decisions (3) - ANS✅✅- Marketing Objectives

- Marketing Mix Strategy

- Costs



External factors that affect pricing decision (3) - ANS✅✅- Demand

- Competition

- Economy



Price Elasticity - ANS✅✅Tells us how much the demand for a product will change with a change in
price



Price Elasticity Equation - ANS✅✅e = % Change in quantity demanded / % Change in price



Price Elasticity Types (3) - ANS✅✅- Elastic

- Inelastic

- Unitary Elasticity



Elastic Demand - ANS✅✅Consumers buy more or less of a product when the price changes



E is >1

, Type of product that would have elastic demand - ANS✅✅Products that are price sensitive and
have many substitutes



Inelastic Demand - ANS✅✅An increase/decrease in price will not significantly affect demand




E is <1



Type of product that would have inelastic demand - ANS✅✅Less price-sensitive and have few
substitutes



Unitary Elastic Demand - ANS✅✅An increase in sales exactly offsets a decrease in prices &
revenue is unchanged



E is = to 1



6 Stages for establishing prices - ANS✅✅1. Develop Pricing Objectives

2. Assess Target Markets Evaluation of Price

3. Evaluate Competitors' Prices

4. Select a Basis for Pricing

5. Select a Pricing Strategy

6. Determine a Specific Price



Pricing Objectives (3) - ANS✅✅Profit

Status Quo

Market Share



Profit Pricing Objective - ANS✅✅- Identify price and cost levels that allow the firm to maximize
profit per product



Status Quo Pricing Objective - ANS✅✅- Identify price levels similar to competitor average price