Pricing strategies microeconomics,download movie maker free apple,online marketing teaching jobs - 2016 Feature

Let us assume that in the above example the market price, P = 3 and no other price prevails in the market (Figure).
Market opportunity analysis is a kind of business planning that emphasizes on discovering the future opportunities and evaluating the company’s technological, financial and competitive willingness to make use of them.
Product diversification strategy is known to be one of the major forms of business growth strategies.
Strategy that is intended to win a larger market share is termed as business growth strategy. Business market is the area of exchange between the provider of business arrangements and commercial petitioner-both sides realize some business, which is not the case in the market of individual consumers. After deciding objectives and goals of company then companies makes its marketing strategy. KEY BENEFIT: This book is well known for its coverage of modern topics (Game theory, economics, information and behavioral economics), the clarity of your writing style and graphs, and integrated use of real examples. KEY TOPICS: The emphasis on relevance and application in management and public policy making is the central objectives of the book.
If the price set is too high, the firm will be unable to compete with other suppliers in the market.
Because if P = 5, supply exceeds demand and the producers may not be able to find enough customers for their product. In simple words it is defined as the capability of a company to flagging the competitors in the market and devising ways to compete successfully. It is defined as the division of market into smaller and specific groups that are homogenous but different from other groups. It is in the terms of customer functions and groups and alternative technologies to broad the expansion scope.
It consists of all the organizations that buy goods and services for the production of further products and services for sale and for-profit and non-profit organizations and institutions that buy for their own use or to provide services to others.
At this stage company needs to do detail planning for marketing mix and marketing mix strategy.
For example, the objective of a company is to increase sales and profits by ten percent in the current year.
This emphasis is carried out with the inclusion of many examples that cover topics such as extended analysis of demand, cost and market efficiency, the design of pricing strategies, investment decisions and production and analysis of public policy.
I’ve heard of a major business here in Berkeley that you should read the two chapters as examples of how these concepts apply to business and the economy. On the other hand, if the price is too low, the firm may not be able to earn a normal rate of profit.
To bar or restrict the entry of a new entrant, an established firm may change price lower than the short-run profit-maximizing price. Every company sell either a product or a service, and all companies have to choose the price to sell their products or services at, which is difficult choice than most people realize.
Another objective of a particular company may be to add five new products in the company's product line or to modify existing products by adding new features and attributes. Diversification strategy enables the business to get the opportunity to grow through increased sales by entering the new markets or existing customers. Pricing can be defined as the process of determining what a company will receive from its customers in exchange for the products or services it sells.
McCarthy who originally developed the 4Ps, he stated it “the marketing mix is combination of controllable factors at a marketer’s command to satisfy a target market”. This helps understand that economics is a science itself (in the sense that it can produce theories that can be tested in the real world) and has some useful applications. In case of free entry, the number of sellers is large in number and in case of restricted entry, the number of sellers tend to reduce.
The entry limit pricing depends on established firm taking a cost advantage over potential entrants.


What development channels will be adopted in order to find, acquire and grow the customers? Therefore, the factors which affect either demand or supply are also determinants of price. In this unit you will understand more about some of the crucial factors that operate in the market place. Such a situation can also exist in a local labour market where a single large firm is the only provider of jobs for the people in the vicinity.
Patentlaw is one such regulation, which promotes and protects the interests of inventorsand innovators.
Under this law, no firm other than the patent holder or the licensedfirm is allowed to make use of the process. The higher the degree of competition, the less market power the firm has and vice-versa. Examples ofvertically integrated firms in India are integrated steel plants such as SAIL and TISCO and Reliance in telecommunications and synthetic fibres.
100, the new firm could enter the market, but a little lower price would resist the entry.
MES is the minimum scale of output that is necessary for a firm to produce in order to take advantages of economies of scale. In this case the price of each product is different because it caters to different segments of the market. Managers must, therefore, make their decisions to the specific market environment in which their firms operate. Competitive behaviour is moulded by the market structure of the product under consideration. When technical changes push up the economic size of a plant, one notices that the number of firms decline over time.
Such attempts are made everyday by managers and are widely visiblein the environment around us. If there are a large number of sellers, the influence of any one firm is likely to be less. Conversely, technological innovations may make it possible for smaller sized plants to economically viable. Presently, only one Indian source (IPCL) provides all the raw materials for plastic products.
However, if there are a large numberof buyers they will be unable to demand lower prices from sellers. Industrial licensing that used to be common in India in the 1970s and 80s is another example of such a barrier. By giving a license to a firm the government provided exclusive rights to that firm or a few firms to produce. For example, ingredients in different soaps could be different as can be the packaging, advertising etc.
Thus the market for provision of cable TV service is not competitive in the sense that only one operator provides the facility. This restricted the number of players in the market through industrial licensing, thus creating a legalentry barrier. For example HLL producing different types of soaps targeted to different customer base. The more the numberof substitutes, the lower and more elastic is the demand for any given product in the market.
At present not many channels besides Doordarshan are available that are free to air (FTA).
The degree of substitutability or product differentiation is measured by cross-elasticity of demand between two competing products.


Why does every other personal computer (PC) that one comes across claim to be an IBM compatible. Therefore, one notices more violent competition, in the detergent market than in the cable TV market. For example, Rahul may feel that Coke and Pepsi are perfect substitutes while Sachinmay have a strong brand preference for Pepsi. The physical characteristics of a product can also influence the competitive structure of its market.
Although all companiesstrive to develop one form of competitive advantage or another, relatively few arepersistently successful over long periods. In short run, where the capital of firms is fixed, entry and exit does not make much difference. Innovative activity is almost alwaysfollowed by waves of imitation and relatively few first movers are able to maintaintheir initial market position.Although Tagamet was both revolutionary and one of the best-selling drugs of alltime, an imitator, Zantac, eclipsed it in an embarrassingly short time. Ease of entry and exit is however a crucial determinant of the nature of a market in the long run. For reasons ofminimising the transport costs on raw materials, most cement plants in the countryare located near mine sites. Similarly,companies such as Thorn – EMI, which first developed the CAT scanner, andXerox, whose Palo Alto research labs developed many of the innovations thatcreated personal computers, failed to generate any lasting success from ideas thathave created whole new industries.
A large efficient plant near a mine site canmanufacture cement at the optimum cost, but the local demand is never largeenough. The simple truth is that most large-scaleexpenditures designed to create competitive advantage are unlikely to realise areturn unless that advantage can be sustained.Economists think about this problem as one of creating, or strategically exploiting,barriers to entry or mobility barriers. If such a plant has to sell in far away markets (from Gujarat to Kerala, forexample) the transport costs can be quite high.
If there are no close substitutes to that drug, the firm will be free from competition for the duration of the patent.
Productdifferentiation arises when buyers distinguish the product of one company from thatof another and are willing to pay a price premium to get the variant of their choice.Such differences become entry barriers whenever imitators, whether they be newentrants or companies operating in other niches of the same market, cannot realisethe same prices for an otherwise identical product as the incumbent. The government partly offsets thisby using the mechanism of levy price which is the same throughout the country. Similarly, since Indian Railways, is a public monopoly no new entrant can enter the market.
The value of these labels depends, of course, on the size of the switching costs that they help to sustain. Chamberlin implies a market structure with a large number of firms selling differentiated products. If costs halve as production doubles, then a small entrant will have costs per unit twice as high as an incumbent twice its size.
Sunk costs raise the costs of exit (and so make it that much harder for the entrant to force the incumbent out). The nature of products is such that very often one finds entry of new firms difficult. Oligopoly is characterised by vigorous competition where firms manipulate both prices and volumes in an attempt to outsmart their rivals.
It is only in extremecases that the firm has no say in pricing its product because there prevails perfectcompetition in the market or the good has so much public significance that its priceis decided by the government.



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