While setting up an initial price structure for a product, a marketer should primarily:
A. discount environmental and external factors.
B. consider the recommended price to various channel members.
C. overlook number of products sold by competitors.
D. de-emphasize profit potential.
Answer:
Signs and Sales Inc. makes neon signs. Its CEO recently attended a trade show where
he examined the new Neon Pilot 5.0, a machine that allows you to create
three-dimensional computer-generated designs, feed the designs into a machine with
neon tubing, and have the neon extruded in almost any shape imaginable. He believes
this machine will increase his company's output by at least 30 percent and reduce its
wastage by at least 50 percent. The CEO then consults a large number of decision