ENTREPRENEURIAL MARKETING
MARKETING MIX
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost-Added Pricing
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Cost-Plus Pricing
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Competitive Pricing
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Cost-Minus Pricing
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Detailed explanation-1: -Cost-plus pricing is also known as markup pricing. It’s a pricing method where a fixed percentage is added on top of the cost it takes to produce one unit of a product (unit cost). The resulting number is the selling price of the product.
Detailed explanation-2: -Cost-based pricing is a pricing method that is based on the cost of production, manufacturing, and distribution of a product. Essentially, the price of a product is determined by adding a percentage of the manufacturing costs to the selling price to make a profit.
Detailed explanation-3: -Cost-plus pricing isn’t for everyone. Clothing and grocery industries often use it since they sell a variety of merchandise, and each product can have a different markup percentage. For apparel brands, it’s an easy way to communicate transparency with potential customers.