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Question:
Price is the only element of the marketing mix which generates revenue, the other elements being all associated with costs. Hence its determination is crucial for any organization.
The determination of the price of a product does not rest solely on the marketing manager. The views and reactions of several stakeholders must be taken into account. Price determination is therefore not a simple task, owing to the many variables that need to be considered.
(a) Suppose you are the marketing manager of a beverage company, UB Limited. The company is about to launch a new brand of cold drink in the local market. As a marketing manager, discuss the steps you would take in determining the price of the new product and all the factors that you will consider in the formulation of its price.
(b) What pricing strategies would you recommend for the launching of this new cold drink?
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