Week 9 Activity.docx BADM533 University of The Cumberlands BADM533 - M51 Marketing Manag

Document Content and Description Below

Week 9 Activity.docx BADM533 University of The Cumberlands BADM533 - M51 Marketing Management Recall the product life cycle from Chapter 8 and talk about the pricing methods used at each stage of ... the life cycle. Introduction stage - Depending on the type of goods, the price is usually either low or high. For innovative products, the strategy is price penetration or price skimming. The price is adjusted based on the answer. If demand is high and there is no competition, a high price is set (Iacobucci, 2018). Growth Stage - Price can be increased at this stage if the objective was price penetration and sales have grown. As manufacturing has increased, the cost per unit of creating items has decreased, allowing for cheaper prices (Iacobucci, 2018). Price can be decreased if price skimming is employed. This, too, is dependent on the sales goals set by the firm (Iacobucci, 2018). Companies will cut their prices if they can boost sales by doing so. If a low-cost competitor enters the market, the price will be decreased. The business must pursue a competitive pricing approach. Maturity Stage - Sales are nearly stable at this stage, and competition is strong, therefore businesses adopt a competitive pricing approach. Some businesses use a discount price approach to get customers to buy their goods (Iacobucci, 2018). Decline Stage - During this stage, product sales have decreased. Because sales have decreased, the company has decided to cut the product's price. There are a variety o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

Last updated: 1 year ago

Preview 1 out of 2 pages