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Delorean Delorean
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Posts: 537
Rep: 1 0
6 years ago
The most important trade-off in logistics is between:
 a. Warehousing and packaging
  b. Inventory and packaging
  c. Transportation and warehousing
  d. Transportation and inventory

Question 2

Explain the difference between skimming and pricing for market penetration.

Question 3

A sampling frame is also called a working population.
 
 Indicate whether the statement is true or false

Question 4

When an ad is shown for such a short time that it doesn't meet the threshold of consciousness, it is called
 a. fast.
  b. liminal.
  c. subliminal.
  d. unconscious.

Question 5

Marketers have begun to recognize the strategic value of place in the marketing mix, as well as the benefits resulting from high-quality logistical services. As a result, which has been recognized as the interface activity between marketing and logistics?
 a. Product
  b. Promotion
  c. Price
  d. Customer service

Question 6

Explain segmentation pricing.
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1 Reply

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Replies
wrote...
6 years ago
Answer to #1

d

Answer to #2

Two contrasting strategies are referred to as pricing for market penetration or skimming. If you want to disperse your brand quickly and widely throughout the marketplace, that is, penetrate the market, the brand would be priced low at the time of its introduction to stimulate sales and to encourage trial and word of mouth. This approach is intended to capture a large market share. It is a little risky because, if many customers immediately start buying your brand, you better be ready. The product better be good (no beta testing, thank you), and your production capacity and your channels better be ready to serve. With time, the price is usually raised. As the brand reaches maturity and finds its segments, the product is adorned with more features that customers care about, etc.
In contrast, market skimming is a strategy where a high price is set because the company is seeking profit margin, not volume. The only customers who will buy this brand at a high price are the ones who really want it. Think of your digit-head friends who want the latest in software or hardware and who are willing to pay (a lot) for it. Think of the authors you like so much that you buy their new books in hardback, rather than waiting a few months for the lower-priced paperback or e-book to come out. Over time, the price is usually lowered to make the brand accessible to more customer segments.

Answer to #3

T

Answer to #4

c

Answer to #5

d

Answer to #6

Good marketers will do their homework and inevitably find customer segments who value different things. Then it is perfectly acceptable to charge different customers different prices for different goods and services. In most markets, there are almost always a price-sensitive segment and another that seeks quality. There is nothing wrong with a company offering a stripped-down product at lower prices to the former and a souped-up version at a higher price to the latter.
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