They can increase price by raising perceived quality or improve quality or

They can increase price by raising perceived quality

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Respond by holding or adjusting their price based on what the competition is doing. They can increase price by raising perceived quality or improve quality or reduce price/launch a low-price “fighting brand” to compete. Public Policy Issues in Pricing -price fixing - competitors can’t work with each other to set prices predatory pricing- firms may not sell below cost with the intention of punishing a competitor or gaining higher long-run profits or running a competitor out of business. Retail price maintenance-(VERTICAL PRICE FIXING)- sellers are required to not sell products below a minimum retail price, however, manufacturers and wholesales can fix the maximum retail price for their products as long as the price agreement is not anticompetitive. Price discrimination/Discriminatory pricing - the practice of charging different prices to different buyers for goods of like grade and quality, which substantially lessen completion or create a monopoly. Deceptive pricing - price confusion, scanner fraud, bogus reference/comparision pricing What is a distribution channel? Any intermediary involved in delivery of a product or service from the manufacturer to the end user. Can be more than one (middleman, agent or broker, wholesaler, retailer, distributor, dealer) Functions performed by the distribution channel 1 Transactional function: Buying products, selling, risk taking (assuming owner risks in ownership of inventory) 2 Logistical function: Assorting, storage, sorting, transporting
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3 Facilitating function- Financing, Grading/inspecting, marketing information and research What is a direct marketing channel? Marketing method of direct marketing. It puts the organization directly in contact with the customer or targeted prospect. Indirect maketing channel? Marketing through industrial distributor, agents, Retailers, wholesellers>retailers Agents>wholesalers>retailers What is multichannel marketing? Blending of different distribution and promotional channels combining both direct and indirect to do your marketing. (ie retail storefront, a website, mail-order catalog, mail, email, etc What is a vertical marketing channel? System where producers, wholesalers and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power they all cooperate. -Corporate vertical distribution channel Successive stages of production and distribution under a single ownership - Contractual vertical channel Independent firms at different levels join together through contracts (wholesalers, retailers, and franchising Administered vertical channel Independent firms that coordinate through the size and power of one of the parties What are the main factors that affect the channel design? Environmental Factors Consumer factors Products factors Company factors What are the different types of channel conflict?
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