Just ANswer the Number 2! Here is the Answer for the Number 1.Markup price: - It is defined as the difference between cost price to make building and the price charged from customer. Markup price is simply a price that is added to actual price of construction.Any building or industrial contractors prefer markup pricing method because it sets prices for goods which will give profits to contractors. It is very useful for products whose price varies frequently.Markup pricing strategy is easy to calculate reason behind that is it consists simple equation which eliminates confusion in pricing the products. Also, it is very fast and error free with respect to other methods.With the help of markup pricing method contractors can recover labor or other price easily.Markup price is useful for bulk pricing. For example- One has to do pricing of hundreds products then just set a profit percentage on each products which will save the decision making cost. ExercisesName:Section:DiscussionDate:1.Markup pricing is typically used by building or industrial contractors.Give an explanation as to why this would be their preferred pricingmethod.2.Give an example of a product that has a price that you find difficult toclassify as being high or low. Explain why.Give an example of a product that challenges the market leader byoffering a slightly lower price. If you were to raise its price higher thanthe market leader's, what price would you recommend and what do youthink would its implication be?3.Market leader:Product:Market leader's price:Recommended price:Implication:Chapler 6- Pricing Strategies 209

Answered: Give an example of a product that has a…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

Just ANswer the Number 2!

Here is the Answer for the Number 1.

Markup price: - It is defined as the difference between cost price to make building and the price charged from customer. Markup price is simply a price that is added to actual price of construction.

Any building or industrial contractors prefer markup pricing method because it sets prices for goods which will give profits to contractors. It is very useful for products whose price varies frequently.
Markup pricing strategy is easy to calculate reason behind that is it consists simple equation which eliminates confusion in pricing the products. Also, it is very fast and error free with respect to other methods.
With the help of markup pricing method contractors can recover labor or other price easily.
Markup price is useful for bulk pricing. For example- One has to do pricing of hundreds products then just set a profit percentage on each products which will save the decision making cost.