Pricing Strategies
Instructions
List two different pricing strategies for a product or service you are familiar with. Next, select an industry/product you are familiar with and input numbers into the marketing calculator* for sales review, cost of goods sold, gross margins, etc. Discuss your rationale for each of your selections and how it will affect marketing of your chosen product/industry.
Answer
Pricing strategiesOrganizations use different pricing approaches relative to the strategy of the company. The two pricing strategies of iPhone in a market, as Africa is penetration strategy and pricing at a premium. The penetration pricing strategy entails setting the cost of a product to establish a new brand in a market (Faith & Agwu, 2018). iPhone chooses low prices as a strategy of penetrating the African market. This approach is because the African market has other dominant Smartphone brands. Pricing at a premium is the other pricing approach applicable by iPhone. The African market has prestige buyers, who are willing to part with a huge sum of money to get the product. iPhone can capitalize on this segment of consumers by setting huge cost on the product.Amounts inputted in the...
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