Question

Explain the importance of price.

1.     What is the return on investment?

1.     What is the break-even analysis?

1.     What is the marketing channel?

1. What is brand loyalty?

1. What is test marketing?
2. Differentiate between services and goods.

Answer 1

Importance of pricing:

Pricing is another P or marketing strategy that marketer needs to focus on as, it has several importances like use of reasonable pricing can build more trust in the mind of customer, using such placement of proper pricing that can increase more revenue. Sometimes, that pricing could be so high at the initial stage of product selling as that defined to cover heavy investment in short terms.

Return of Investment:

Firm usually invest in their business and expect for return with some specific time period. Here, ROI is formulated as percentage figure that represent either gain or loss over the investment.

For example: firm has invested $100000 and received profit return of $300, hence, ROI will be ($300/$100000)*100=30%

Break-even analysis:

it is used as financial tool, normally organization puts initial cost like fixed cost and during running of operations, and we can see variable cost for each unit. It is considered as decision making tools to know about the numbers of products are to be sold, after that point, firm can start making profits. We know that break even quantity is (Fixed cost)/(Revenue per unit-variable cost per unit)

Marketing channel:

Marketing channel could be considered as the media through which products get transferred to the customer. For example: we can see customers buy car products from car dealers/retailers, here, automobile companies are connected to the customers using distribution channel like dealership seller.

Brand loyalty can be defined as implementation of brand value and customer relationship, so customers get more committed to that specific brand, further, it takes brand positioning in the mind of customers, customers will visit the shop for several times as they love that brands.

Test marketing:

Test marketing is typically an experiment that conducted by the firm, here, it involves some store outlets and build a buying situations, with such process; we can understand the reaction of customers. Test marketing could consume several months as to understand the feedback of the products. We can see such test marketing as applicable for packaged items.

Services	Goods
Services could be in the form of any benefits, amenities, further it builds interaction between two parties. Through this way, transaction processes. Services are intangible and measured in subjective way Examples of services like software delivery services, product delivery services, teaching services, etc.	Goods can be any item, which are sold by the buyers. Goods are tangible and we implement objective measure. Examples of Goods are Woods, Pen, Books, Bed, sofa, etc.