Position is concerned with how a firm is situated relative to its rivals In a

Position is concerned with how a firm is situated

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market. Position is concerned with how a firm is situated relative to its rivals. In a sense, a position is a part of the market or specific target market that a firm is claiming for its own. Price is an important issue because it determines how much money a company can earn. The price a company charges for its products also sends a clear message to its target customers. The two method for determining the price of a product or service are cost-based pricing and value-based pricing. In cost-based pricing, the list price is determined by adding a markup percentage to a product’s cost. In value-based pricing, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion. Most experts recommend value-based pricing because it hinges on the perceived value of a product or service rather than cost plus markup, which is a formula that ignores the customer. A firm’s sales process (or cycle) refers to the steps it goes through to establish relationships with customers and to close sales. Advertising is making people aware of a product in hopes of persuading them to buy it. The

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