(9). Several potential benefits exist when a buying firm pays for and takes title to special tooling? Which is not one of the potential benefits?
(a). The buying firm gains greater control,
(b). Insurance costs are lower,
(c). Analysis of production costs is easier,
(d). Labor learning curve effect is reduced.

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What might be the relationship between cost advantages and the product life cycle? Do the available advantages change over time?

Need one to two paragraphs.


Using marketing tactics and legal threats, IBM is actively trying to keep mail order retailers from selling its line of personal computers. IBM earns the same wholesale price regardless of whether its products are sold be a mail order or by a full-service retailer. Why then would IBM want to discourage mail order sales?

**Need about 2 paragraphs**


Evaluate the following statement: Antitrust laws punish companies, not individuals. So long as you prove that you are following company policy, you are not personally subject to prosecution for pricing decisions.

**Need a paragraph or two**


Why do you think in certain instances one firm can provide lower prices than two or more firms?


You need to discuss pricing with senior management. Prepare talking points on how ITO should price its services compared to the many domestic and international companies in the same market niche and why. Be sure to include pricing strategies for on-site versus off-site projects. Also include strategies for:

* short duration, small staff projects
* long duration, large staff projects
* projects that fall in between these two categories

Also include your suggestions about how to handle competition, especially off-shore (i.e. India) or near-shore (i.e. Canada) competition offering very low pricing. Discuss how often ITO Company’s pricing structure should be reviewed and why.



The AI Brainstorming Conference topic for this week is pricing strategy (another element in the Marketing Mix). How do you set a price for your product or service? In five to six paragraphs:

1. Based on the strategies of the other three marketing mix elements, explain what pricing objectives you would consider.

2. Identify the pricing objective you ultimately will choose and explain why.

3. Give advice to at least two other participants with regard to their pricing decisions. Do they make sense? Would you make a different decision? Why or why not?

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