Why Do Marketers Need to Know How to Set Prices

question 55

Essay

Why do marketers need to know how to set prices?

Comprehend the legal concept of performance standards in contracts.

Distinguish between anticipatory repudiation and actual breach of contract.

Grasp the concept of impracticability and impossibility in contract law.

Understand the doctrine of good faith and fair dealing in contractual relationships.

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Definitions:

Continuous-process Production

A manufacturing method where materials are continuously in motion, being processed, and transformed into finished goods without interruption.

Productivity Inefficiencies

Situations where resources are not utilized in the most effective way, leading to decreased output or increased costs without proportional benefits.

Lost Revenue

Refers to the money that a business could have earned but did not, due to various factors such as cancelled services or unsold inventory.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.