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Homework Help: Solved 102009

I’m studying for my Marketing class and need an explanation. minimum 300 words… do not use outside resources … if you do use in your own words and do not put a resource page. Explain why Pricing is based Demand and CompetitionTo wrap up our semester, everything about marketing is about providing something of value to a quantity of people. That is your business model. Price times quantity equals revenues. First you need to understand your pricing objectives in chapter 17 are driven by where you are in the product life cycle, or by how many competitors you have. Once you understand your objectives, you then must have a wise pricing strategy for both the end user and your sales channels….one that communicates value consistent with your brand. The question for the post is: 1) How would you most effectively communicate value for your product as you make your price competitive in a mature market. and 2)Looking to Chapter 18, why is cost or breakeven analysis not an effective way to determine the best price. Why should marketing be establishing the price for the product?

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