Chapter 17 Outline - Chapter 17 Outline I. The Importance...

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Chapter 17 Outline I. The Importance of Price a. What is Price i. Price: that which is given up in an exchange to acquire a good or service b. The Importance of Price to Marketing Managers i. Revenue: the price charged to customers multiplied by the number of units sold ii. Profit: revenue minus expenses II. Pricing Objectives a. Profit Oriented Pricing Objectives i. Profit Maximization 1. Setting prices so that total revenue is large as possible relative to total costs ii. Satisfactory Profits 1. Reasonable level of profits iii. Target Return on Investment 1. Net profit after taxes divided by total assets b. Sales Oriented Pricing Objectives i. Market Share 1. A company’s product sales as a percentage of total sales for that industry ii. Sales Maximization 1. Strategy to ignore profits, competition, and the marketing environment as long as sales are rising c. Status Quo Pricing Objectives i. A pricing objective that maintains existing prices or meets the competitions prices ii. Passive Policy
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This note was uploaded on 06/12/2008 for the course MKT 371 taught by Professor Davis during the Fall '07 term at Sam Houston State University.

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Chapter 17 Outline - Chapter 17 Outline I. The Importance...

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