Provide a short list of possible costs associated with producing your company’s product and/or services
For this discussion, you will assume the role of the marketing manager who is charged with introducing a new product to the market. When answering this week’s discussion board questions, you may find it easier to first select a legal brand/consumer product to write about (ex. Almond Joy Candy Bar).
There are many decisions that will shape the plausible direction of your marketing mix. In particular, the selling price is of particular interest to the accounting/finance teams. Yet, but before deciding if your product introduction plan will leverage a “pricing skimming strategy” or a “penetration pricing strategy,” you should figure out the costs of doing business.
- Provide a short list of possible costs associated with producing your company’s product and/or services.
- Now, describe the concepts of price skimming and penetration pricing.
- Compare the advantages and disadvantages of each strategy for the firm, and the advantages and disadvantages to the consumer.
- How can this impact the industry as a whole?
