CMS 341 LECTURE 5 EXAM
QUESTIONS WITH 100% VERIFIED
CORRECT ANSWERS!!
Considerations in Setting Price
competitor strategy and prices
marketing strategy, objectives, and mix
nature of the market and demand
product costs
consumer perception of value
Price floor
no profits below this price
price ceiling
no demand above this price
Pricing Strategy
entry price
mid-level price
expert price
entry price
attract customers
mid-level price
generates volume
expert price
image driver
Fixed costs (also known as overhead):
Costs that do not vary with production or sales level
, Variable costs
Costs that vary directly with the level of production (depends on the number of units produced)
Retail Selling Price (RSP)
Price paid by the consumer in the store or online
Price at which the manufacturer recommends that the retailer sell the product to the consumer
Price the retailer sells to the consumer
Retail margin
40-60%
NSP
Price the brand sells to the retailer
= the brand's revenue
= the wholesale price
cost of good (COG)
▪ A dollarized cost per unit of product
▪ reflects cost of the product itself
▪ The cost for the company to produce this product
▪ Knowing your cost per product is the foundation of making a profit
Gross margin
difference between revenue (NSP) and COG
% Gross margin:
Gross margin divided NSP
Marketing budget categories
WORKING MEDIA
NON-WORKING MEDIA
MERCHANDISING
PRODUCT DEVELOPMENT
QUESTIONS WITH 100% VERIFIED
CORRECT ANSWERS!!
Considerations in Setting Price
competitor strategy and prices
marketing strategy, objectives, and mix
nature of the market and demand
product costs
consumer perception of value
Price floor
no profits below this price
price ceiling
no demand above this price
Pricing Strategy
entry price
mid-level price
expert price
entry price
attract customers
mid-level price
generates volume
expert price
image driver
Fixed costs (also known as overhead):
Costs that do not vary with production or sales level
, Variable costs
Costs that vary directly with the level of production (depends on the number of units produced)
Retail Selling Price (RSP)
Price paid by the consumer in the store or online
Price at which the manufacturer recommends that the retailer sell the product to the consumer
Price the retailer sells to the consumer
Retail margin
40-60%
NSP
Price the brand sells to the retailer
= the brand's revenue
= the wholesale price
cost of good (COG)
▪ A dollarized cost per unit of product
▪ reflects cost of the product itself
▪ The cost for the company to produce this product
▪ Knowing your cost per product is the foundation of making a profit
Gross margin
difference between revenue (NSP) and COG
% Gross margin:
Gross margin divided NSP
Marketing budget categories
WORKING MEDIA
NON-WORKING MEDIA
MERCHANDISING
PRODUCT DEVELOPMENT
