Question

Shelly is undergoing the six-step process for establishing prices for a newly launched product. She has just finished assessing the target market's evaluation of possible prices. What is Shelly's next step?

Answer 1

Answer:

Evaluation of competitors price

Explanation:

Shelly must benchmark her product's price against its direct competitors, how often they offer discounts or promotions, etc. She should also evaluate differences in product quality, and if possible, she should try to get information about her competitors' costs.

Are you offering a high quality, medium quality or low quality product? Is your price correct according to what the competition offers? Or is it too high or too low? If so, why is it too high? It it's too low, it is always easier to increase the price but decreasing it may b difficult.

Depending on what type of product you want to sell and the relationship that your company has with retailers, the distribution costs can affect your final price. For example, some companies make special deals with some retailers to give them exclusive rights to sell their products at a certain price that tends to be much lower than their competitors'.