0
Target-Profit-Pricing Target-profit-pricing method involves identifying the price at which a product will be competitive in the marketplace, defining the desired profit to be made on the product, and computing the target cost for the product by subtracting the desired profit from the competitive market price
Jason
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
What is cash take sale?
Tell them that it is not their property to sell for profit. If they persist, tell them that if it is sold, you will not give them any profit; produce a receipt if necessary.
Difference between cost based pricing and value based pricing?
There are two basic methods of pricing of any products and services: cost-based and value-based pricing. The best choice depends on your type of business, what influences on customers to buy and the nature of the competition. This takes the cost of producing any product or service and adds an amount that we need to make a profit. This is usually expressed as a percentage of the cost. It is generally more suited to businesses that deal with large volumes or which operate in markets dominated by competition on price. But cost-based pricing ignores our image and market positioning. And hidden costs are easily forgotten, so our true profit per sale is often lower than we realise. This focuses on the price we believe customers are willing to pay, based on the benefits our business offers us. Value-based pricing depends on the strength of the benefits we can prove our offer to customers. If we have clearly-defined benefits that give us an advantage over our competitors, we can charge according to the value of our offer customers. While this approach can prove very profitable, it can alienate potential customers who are driven only by price and can also draw in new competitors.
Pls explain in details the 4ps of marketing?
PRODUCTThe business has to produce a product that people want to buy. They have to decide which 'market segment' they are aiming at - age, income, geographical location etc. They then have to differentiate their product so that it is slightly different from what is on offer at present so that people can be persuaded to 'give them a try'.PROMOTIONCustomers have to be made aware of the product. The two main considerations are target market and cost. A new business will not be able to afford to advertise on national television, for instance and would not wish to because its market will be local to start with. Leaflets, billboards, advertisements in local newspapers, Yellow Pages and 'word of mouth' would be more appropriate.PRICEThe price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number of possible pricing strategies. The most commonly used are:PENETRATION PRICING - charging a low price, possibly not quite covering costs, to gain a position in the market. This is quite popular with new businesses trying to get a 'toehold'.CREAMING - the opposite to penetration pricing, this involves charging a deliberately high price to persuade people that the product is of high quality. Luxury car makers often use this strategyCOST PLUS PRICING - this is the most common form of pricing. Costs are totalled and a margin is added on for profit to make the total price.PLACEThe business must have a location that it can afford, and that is convenient and suitable for customers and any supplier.
What is a pricing tactic?
There are many ways to find value for your house. Not all of them will actually provide you with a number that will accurately reflect what you can get from a buyer, but they can give you some ideas. Property Tax Assessment Home Owners Insurance The original cost Desired value Getting a value online The best way to find a fair market price for your home is to get a real estate agent or professional to do a comparative market analysis. These pros have access to data on every house that has been bought and sold in your area for decades past.
What is meant by marketing mix?
The Marketing Mix is composed of four elements:Product - This is where you talk all about the product, the attributes of it, its name, its benefit etc.Price - This is where you talk about pricing strategies. You should consider the cost of producing the product, shipping costs, advertising costs and profit. If your product costs 76 cents to make, and 2 dollars to ship, and you still want to make profit, I would give it a price of something like 8 dollars. This will get you profit, as well as cover advertising costs.Promotion - This is the section that includes all types of promoting for your product. Advertising, PR etc.Place - Where the item will be sold, why only those specific merchants, which section of the store etc.
Who is the target market for internet cafe?
people who give a business a good run an a profit
What is the definition for butt?
A butt may be a barrel of wine, an archery target, the mound of dirt behind a rifle target range. a woodworking joint, a cigarette end, or to give a blow with the forehead.
Can a nonprofit give money to a for profit organization?
Can a nonprofit foundation give money to a for profit organization
Can a non-profit give charitably to another non-profit?
Yes they can give a gift to another charity but I do not believe they can deduct the gift on their taxes.
What is the definition of measure of an angle?
give the definition of an andle
What is the subject in the sentence Can you give a definition for that word?
In the sentence 'Can you give a definition for that word?', YOU is the subject.
Does Target give AARP discounts?
NO
What is a sentence using the word profit?
I can give you several sentences.We are in business to make profit.The profit on that sale is ten percent.It will profit you to take my advice.
What is the definition of heed?
Definition of heed is: to give careful attention to
What are the example of definite?
How can I give definition of this word? What is the definition of merc?
What is the definition of chasm and give the meanings?
means give in
Describe two criteria used to assess a markets potential for a new product?
I'll give you a couple... 1) Map and evaluate your customer base. 2) How far will customers travel to reach location of business? 3) Competition. 4) Pricing/cost of sales/profit and loss.
