ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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With target costing, marketers will first ____ and then ____
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build the marketing mix; identify the target market
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identify the target market; build the marketing mix
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design the product; determine its cost
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use skimming pricing; use penetrating pricing
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determine a selling price; target costs to ensure that the price is met
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Explanation:
Detailed explanation-1: -Option (A) is correct as target costing is described as when revenue begins at market price and desired profit is subtracted to achieve target cost. Target cost is calculated by subtracting profit margins from the Selling price.
Detailed explanation-2: -Design a product that provides the features and price demanded by customers. Determine the company’s desired profit. Derive the target cost by subtracting the desired profit (from step 2) from the desired price (from step 1). Engineer the product to achieve the target cost (from step 3).
There is 1 question to complete.