07 Pricing Strategies - Pricing Strategies What Not in the...

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Pricing Strategies - Not in the book, but on Blackboard - Vincent Vango: irises; 73.9 million What is price? - tuition, fee, rent, dues, fare, interest, commission, etc. - price is only the marketing mix variable that brings in revenue and it affects profit through both demand and supply - value = benefits/price o benefits: taste, quality, nutrition, recipes, information, safety, freshness, fun, etc. Pricing Objectives (like firm objectives) - Profit: LR profit, current profit and target return o Better off in the long run o Short run: for the quarter, satisfy people who invest in company o Could have a cost, if I sell a lot this year, the profit might be less next year; sell a lot of cars this year, less people need cars next year - Sales - Market share: larger market share, the more profit for the firm o PIMS (Profit impact of marketing strategies): market share profit (ROI) Market share: less than 10%, 20-40%, greater than 45% Profit (ROI): 13%, 24%, 32% - Volume - Survival: i.e. airline companies - Social responsibility o How can I set a price that helps company and indirect cost (like pollution,
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