Understanding an organization's cost base is essential in determining the required _____ strategy which will be utilized in the marketing of a product and its corresponding impact on profit.
A) product
B) promotion
C) distribution
D) communications
E) pricing

Question

Quizplus · Accepted Answer

Pricing strategy is crucially dependent on the understanding of the organization's cost base. By knowing the costs involved in producing and distributing a product, a company can set a profitable price that will cover its expenses and still generate profit. The pricing strategy chosen will, in turn, impact the marketing of the product and its ultimate impact on profit. Therefore, pricing strategy is the required strategy that is utilized in marketing the product and its corresponding impact on profit.

Understanding an Organization's Cost Base Is Essential in Determining the Required