The marketing mix：練習問題

A business decides to enter a highly competitive market by setting the price of its new organic snack bar significantly lower than its competitors to encourage consumers to switch brands and to gain a large market share quickly.

Which pricing strategy is the business applying?

A company identifies that its flagship product has a high market share in a rapidly growing industry (a 'Star'), while another product has a high market share in a mature, slow-growing industry (a 'Cash Cow').

According to the Boston Matrix, how would the company typically manage the cash flow between these two products?

Explain one reason why a new business might choose to use penetration pricing rather than price skimming when launching a product in a highly competitive market.

Analyze the trade-off a business faces when choosing a price skimming strategy for an innovative new product in terms of its impact on profit margins and market share.

The following diagram shows the product life cycle of a popular soft drink brand, 'Sparkle-Pop', illustrating the stages from Introduction to Decline. The product has recently entered the 'Decline' stage.

(a) Define the 'Decline' stage of the product life cycle. (1 point)
(b) Suggest two extension strategies the company could use to inject new life into 'Sparkle-Pop'. (2 points)
(c) Explain how changing the packaging of the drink could act as an extension strategy. (2 points)

Aura Tech is a manufacturer of premium smartphones. Their current flagship model, the Aura-G10, has a manufacturing cost of \( \$480 \) per unit. The company is considering different pricing strategies for its upcoming launch in a new international market.

(a) Calculate the selling price of the Aura-G10 if Aura Tech uses a cost-plus pricing strategy with a \( 60\% \) mark-up. (2 points)

(b) Analyze two reasons why price skimming might be a more appropriate strategy than penetration pricing for a luxury electronics brand. (3 points)

(c) The Aura-G10 is currently in the 'Growth' phase of its product life cycle. Evaluate whether viral advertising via social media is a more effective promotional method than product trials for maintaining this growth. (3 points)