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Determine the Cost Based Pricing
Under this method, price of product is fixed by adding the amount of desired profit margin to the cost of product. If a specific soap costs the marketer 8 $ and he desires a profit of 25%, the price of the soap is fixed at 8$ + (8x25/100) = 10$. While calculating the price in this way, all costs (variable as well as fixed) incurred in manufacturing product are taken into consideration.
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Advertising and sales promotion Advertising and sales promotion allow for a high level of control over the message, from design to transmission. Interestingly, they afford only
exchange oriented stage
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Cost Based Pricing : Under the cost based pricing, different methods used are :- Mark Up Pricing Absorption Cost Pricing Target Rate of Return Pricing Margin
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