price, place and promotion

User Generated

Mvnxhyy

Business Finance

Description

There are various methods to determine the price of a product. One of the method is using price elasticity. There are two types of price elasticity, elastic and inelastic. Wei (2013, 2) stated that the quantity demanded always contradicts with the price level because of the law of demand. Therefore, the change in price will result in the change in quantity demanded.

International joint ventures is the best mode of entry for Koi Café since share ownership with the local limited liability company is necessary for any foreign investors setting business in Surabaya. International joint ventures enables Koi Café for a more efficient channels of distribution, lowered the political risks, share economics with other organisations and ease the transfer of technology.

Promotion is a major form of business that company must perform to help their market transaction. Furthermore, different aspects of sales promotion and advertising affect their marketing (Chakrabortty et al. 2013, 186). Rising attention in use of sales promotion as a marketing tactic has resulted in a unique enlargement of study in that region.

Discuss these

1. Price (1.5 to 2 pages)

2. Place (1.5 to 2 pages)

3. Promotion (1.5 to 2 pages)

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Surname 1
10.2 Price
There are various strategies that can be used to determine the price of commodities. Price
elasticity is one strategy that can be used to determine the price of products offered by Pedro
Company. In real reality, the quantity demanded can help one to decide on the products’ price.
The price level will always differ with the quantity demanded by the individuals. Hence, a
change in the price level will alter the quantity demanded of the products. Pedro Company will
decide on their products prices after analyzing the quantity demanded of the goods they offer to
the general public in Germany (Demographic Data for Berlin 2018).
Furthermore, Pedro Company products show an elastic type of price elasticity. This
means that the products can attract an increased quantity demanded even when there is a small
increase in the price of the goods. In another view, the products can also fetch a decrease in the
quantity of goods demanded when there is an increase in the price of products. This will
definitely result from the many alternatives that customers may choose other business firms
(Richardson 2018).
Additionally, competition also makes products offered by Pedro Company as elastic.
Pedro Company should implement a marketing pricing strategy in conducting their business.
This includes the use of a market price of a leading market Company. In this case, Pedro
Company may adjust its prices to be at par with other leading companies in the market.
However, to tackle this competition, Pedro Company might reduce their prices to fetch more
customers in the market share.
However, Pedro Company cannot standardize the price in Germany to match the price in
Singapore. This is due to the fact that, the two countries have different income level. Individuals
in Germany have a different income level with the Singapore residents. Furthermore, the cost of

Surname 2
living in the two countries is very different. The company will charge their customers in relation
to the cost of living in the respective countries. Hence, standardization cannot apply in such
scenario (Richardson 2018).
Additionally, cost-plus pricing can also be used alongside market pricing. This is to
ensure that the price of the products does not go lower than the cost of producing the products
and delivering it to the market outlets. This will also make the company achieve their profit
objective. The cost-plus pricing strategy will involv...


Anonymous
I use Studypool every time I need help studying, and it never disappoints.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags