Please provide 3-4 paragraphs about how a pricing strategy may include the three C's. Please provide a reference so I can read more.© BrainMass Inc. brainmass.com October 25, 2018, 7:37 am ad1c9bdddf
Pricing strategy can be based on cost, competition, and customer.
1. Cost based pricing strategy
This is arrived at by quantifying the cost of producing the product or services and a percentage is added to the selling price. Cost-Based Pricing is based on what it costs you to make the product (MIT, n.d.). Roberts (2011) identified two types of cost-based pricing, cost plus and mark-up. Cost plus is based on uncertain production costs. Mark-up is similar, however is based on a known production cost. This type of pricing strategy is effective when the product or service is differentiated. This is the strategy used by Apple Corporation to sell its products at a premium. Bui (2012) noted that Apple products look, feel and seem very different from competitors' products. Most people who buy an Apple product buy it not because it offers more features or it's cheaper but because the company has succeeded in creating a unique identity for its products.
2. Competition based pricing strategy
Competition-based pricing describes ...
The solution discusses the cost based pricing strategy, competition based pricing strategy. and Customer based pricing strategy. It shows that the choice of the pricing strategy is dependent on the market structure, income, technology, behavior and change in the buying habits of the consumers.
Important Information about Marketing Philosophy and Strategy
Marketers must understand the tools of their trade. Using both the textbook and Cybrary resources, research the essential marketing tools, then create a report in which you address the following questions:
1. What is the overall purpose of a marketing plan?
2. How do a marketing plan and strategic marketing plan fit together?
3. What are some legal or ethical issues you may need to consider?
4. List and describe the various components of a strategic marketing plan?. This portion of the project provides a framework for the remaining assignments in the class .
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