Question

In ________, price is considered along with the other marketing mix variables before the marketing program is set.

1) target return pricing
2) value-based pricing
3) variable costs
4) price elasticity
5) cost-based pricing

Answer 1

The correct answer is value-based pricing, which considers price alongside other marketing mix elements before setting the marketing program.

In the context of setting up a marketing program and making pricing decisions, value-based pricing refers to the strategy where the price is considered alongside other marketing mix elements before the marketing program is determined. This approach indeed looks at variables such as average total cost, average variable cost, and marginal cost, and integrates them with an analysis of sales and revenue as well as market structure for long-term production, instead of only focusing on cost or a target return. Therefore, the answer to the student's question would be 2) value-based pricing.

Answer 2

The correct answer is value-based pricing, which considers price along with other marketing mix variables before setting the marketing program.

Step-by-step explanation:

The correct answer to the given question is 2) value-based pricing.

In value-based pricing, the price is considered along with other marketing mix variables before the marketing program is set. Value-based pricing involves setting a price based on the perceived value of the product or service to the customer. This approach takes into account factors such as the customer's willingness to pay, the competitive landscape, and the overall value proposition of the product or service.