(a) State five factors that a manufacturer would consider before setting prices for his products....
(a) Statefive factors that a manufacturer would consider before setting prices for his products.
(b) Explainfive advantages of television over electronic billboard as a medium of advertising.
Explanation
(a)
- Business goals: before setting a price for the product or service, the manufacturer must first consider the overall marketing objectives.
- Cost: the cost involved with running the business must be worked out. These include the fixed cost and direct costs.
- Customers: know what the customers want from the product or services. Are they driven by the cheapest price or by the value they receive?
- Positioning: Where do you want to be in the marketplace. Will the product be expensive or high -end brand in the industry.
- Competitiors: the manufacturer will have to give permission to do little competitor snooping. What are they charging for different products and services?
(b) - Large audience: the television has large audience reach than the electronic billboard as a medium of advert.
- Possibility to hear and see: television advert makes it possibvle to see and hear information about the product at the same time.
- Quick for viewer: understanding of advertisement is simple and quick for viewers.
- True form of the product: the true form and colour of the product can be easily seen.
- Gives live and direct display: in this kind of advertising, there is more sensory stimulations as it gives live and direct display.