Bus 201 (Quiz 2) ^18-What Are The New Product Pricing Stratigies ???

A-Price Skimming:1-Some Consumers Are Willing To Pay a High Price For An Innovative Product,Either Because Of Its Novelty Or Because Of The Prestige Or StatuS That Ownership Confers. Price Skimming Is The Strategy Of Charging The Highest-Possible Price For Product During The Introduction Stage Of Its Life Cycle

2- The Seller Essentially "Skims The Cream" Off The Markets Which Helps To Recover More Quickly The High Costs oF Research And Development

3-The Greatest Disadvantage Is That a Skimming Price May Make The Product Appear Lucreative To Potential Competitors,Who May Then Attempt To Enter That Market

B-Penetration Pricing:1-At The Opposite Extreme,Penetration Pricing Is The Strtegy Of Setting a Low Price For a New Product

2-The Idea Is To Earn a Large Market Share For The Product Quickly. The Seller Hopes That This Approach Will Sell More Units During The Early Life-Cycle Stages And Thus Discourage Competitors From Entering The Market

3-A disadvantage Of Penetration Pricing Is That It Places A Firm In A Less Flexible Positin.It Is More Difficult To Raise Prices Significantly Than Its To Lower Them

^21-Define And Explain The Advertising Five Principal Media Of Advertising? Ans-Advertising Is The Process Of Communicating Persuasive Information About a Product To Target Markets By Mean Of The Written And Spoken Word,And By Visual Material By Definition The Process Excludes Personal Selling

*There Are Five Principle Media Of Advertising: 1-The Press-Newspapers-Magazines-Journals etc 2-Commercial Televison 3-Direct Mail 4-Commercial Radio Outdoor-Transport Advertisment-Hoardings

^25-What Are The Objectives Of Advertising? 1-Increase Customer Familiarity With a Product(Or Variations Of it Brand-Range etc) 2-Inform Customers About Specific Features