Price is the first element marketers adjust when sales are not as expected is this a...

Price is the first element marketers adjust when sales are not as expected is this a smart strategy or not?

Solutions

Expert Solution

this is not considered as a smart strategy all in all and this is because of the fact that it is important to understand the reason behind the factor why the sales is not improving. If the reason is non price factors, like quality of the good and also poor service then it would be better to change the reason why the sales is not picking up and then analyse it and not just by changing price one would always get a fruitful result of increasing sales.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

What is the percentage of sales approach? How do you adjust the model when operating at...

What is the percentage of sales approach? How do you adjust the model when operating at less than full capacity?

How should marketers respond to price changes?

i) What would be the expected price of a stock when dividends are expected to grow...

i) What would be the expected price of a stock when dividends are expected to grow at a 25% rate for three years, then grow at a constant rate of 5%, if the stock’s required return is 13% and next year’s dividend will be $4.00? ii) The ordinary shares of FED Limited are selling for $26.75 on the open market. A dividend of $3.68 is expected to be distributed, and the growth rate of this company is estimated to be...

This is a closed economy. Wages are unable to adjust in the short run. At first,...

This is a closed economy. Wages are unable to adjust in the short run. At first, the economy equilibrium is at Y=Original, and P=Pe (the expected price level when managers signed contracts for nominal wages. This is a horizontal short-run aggregate supply curve. Consider this: The government increased spending (G) by 215. A) How will Investment (I) change in the short-run? B) How will Consumption (C) change in the short-run? C) How will Output (Y) change in the short-run? D)How...

Sales of "El Manzano" are expected to be 4,300 units the following month. The sale price...

Sales of "El Manzano" are expected to be 4,300 units the following month. The sale price of each product is $ 70 pesos. The company likes to keep 25% of each month's sales as ending inventory. The initial inventory is 1,900 units and they cost him $ 50 pesos per unit. However the costs have changed and now they will cost you $ 55 pesos per unit. General expenses will be $ 53,000, interest will be paid for $ 8,000...

A 7-year project is expected to generate annual sales of 10,400 units at a price of...

A 7-year project is expected to generate annual sales of 10,400 units at a price of $91 per unit and a variable cost of $62 per unit. The equipment necessary for the project will cost $437,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $265,000 per year and the tax rate is 35 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?

- Why is price such a difficult variable for marketers to control? What factors must they...

- Why is price such a difficult variable for marketers to control? What factors must they consider in setting prices? - Driving volume is a key pricing objective for many businesses. Find an example of a marketer that uses each of the volume oriented pricing strategies. Do you think this approach is effective? Why or why not?

QUESTION 1 When the net price method is used to record credit sales, the sales discounts...

QUESTION 1 When the net price method is used to record credit sales, the sales discounts not taken account is reported as a(n) addition to sales returns and allowances on the income statement deduction from gross sales on the income statement deduction from selling expenses on the income statement addition to other revenue on the income statement QUESTION 2 After the company completes the bank reconciliation, it makes journal entries for adjustments it made to the bank statement balance it...

When designing the marketing channel what do marketers take into consideration?

Sales are expected to increase by 10% per month. January sales are expected to be 110,000...

Sales are expected to increase by 10% per month. January sales are expected to be 110,000 units We want an ending finished goods inventory balance each month of 10% of the current month’s sales Each unit sells for $85 Each unit required 2 pounds of raw material A, and 5 grams of raw material B. Raw material A costs $11 per pound and raw material B costs $1 per gram. We want an ending raw materials inventory of 20% of...

Subjects