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Unformatted text preview: Chapter 21 Pricing Concepts The nature of Price Price Defined-the value that is exchanged for products in a marketing transaction Terms used for price: Tuition Fare or Fee Fine Price is the easiest to change of the 4 marketing mix variables Price competition-Marketers emphasize price, and attempt to match or beat competitors prices-Firms using price competition tend to market standardized products-Firms using price competition change prices frequently (ex: gas) Non-price competition-Marketers emphasize factors other than price to distinguish products-Marketers often focus on product features, quality, promotion or packaging-It is easier for firms to establish brand loyalty when competing on factors other than price Pricing Objectives(what to accomplish with price) 1) Survival-covering costs 2) Profit-make extra money 3) Market Share-a firms sales in relation to total industry sales(percent of the market, Coke/...
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This note was uploaded on 04/19/2008 for the course MKT 200 taught by Professor Martin during the Fall '07 term at Western Kentucky University.
- Fall '07