With target costing, marketers first ________ and then ________.
A) build the marketing mix; identify the target market
B) segment and identify target markets; set different prices for each market
C) design the product; determine its cost based on target profits
D) use skimming pricing; use penetration pricing
E) determine a selling price market segments will pay; target costs to ensure that the price is met

Question

Quizplus · Accepted Answer

Target costing involves determining the selling price that market segments are willing to pay first, and then targeting costs to ensure that this price can be met while achieving desired profit margins. This approach ensures that the product is both competitively priced and profitable.

With Target Costing, Marketers First ________ and Then ________

With Target Costing, Marketers First and Then