Deck 14: Integrated Marketing Communications

Question 1

What are the five Cs of pricing?
2. Identify the four types of company objectives.
3. What is the difference between elastic versus inelastic demand?
4. How does one calculate the break-even point in units?

Answer 1

(1) The following are the 5 C's of pricing
• The objective or purpose of the company
• The total costs incurred by the company to attain the objective
• The competition in the market and the methodologies handled by the company to manage the same
• The customers and the strategies adopted by the company to retain the customers
• The number of channels in the process of delivering the products and services.
(2) Types of company objectives are as follows:
• Companies that aims only to generate profit for all the business activities are termed as profit oriented companies
• Companies that aims to maximize the production by utilizing the resources and improve the sales is termed as sales oriented companies
• Companies that aims to compete well in the market with unique products are termed as competition oriented companies
• Companies that aim to create customer satisfaction are termed as customer oriented market.
(3) If increase or decrease in price does not change the demand, then the demand is said to be inelastic. However, if the change in price affects the demand of the product then it is said to be elastic.
For example, increase in electricity charges may affect the consumption pattern of the customer. Thus, the demand is said to be elastic.
On the other hand, increase in price of a lifesaving drug will not affect the demand. This means the demand is inelastic.
(4) Breakeven point is the point where the revenue earned over a particular period of time and the expenses made are equal.
The breakeven can be calculated by dividing the total fixed costs and contribution per unit as shown below:

Question 2

Answer 2

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Question 3

What common pricing practices are considered to be illegal or unethical?

Answer 3

not answer