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Price determination

1.The best pricing strategy is the one that satisfies a number of different variables and also meets the firm’s overall objectives. In determining price, a firm must consider things such as cost to produce the product, objectives, flexibility, competitive pressures, return on investment, market pressure level over product life, geographic terms, discounts, and allowances. A pricing method that works for a firm, may not necessarily work for another firm within the same industry.

Identify the eight stages in the process of establishing prices? In your own words, briefly explain each step.
For what types of products would penetration pricing be more effective?
Why should marketers be aware of competitive prices?
2.Compare and contrast the four major types of marketing channels for consumer products. Through which type of channel is each of the following products most likely to be distributed? Why?

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