marketing ch 13 text notes

marketing ch 13 text notes - MarketingCh13: o Priceequation...

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Marketing Ch 13: Building the Price Foundation Nature and Importance of price o Price equation Final price= List price- (incentives+ allowances) + extra fees o Price as an indictor of value Value=perceived benefits/price o Value-pricing Simultaneously increasing product and service benefits while maintaining or decreasing price Value-> worth and desirability of a product or service relative to the subs that satisfy the same need “reference value”: comparing the costs and benefits of substitute items “value-meal” at mcdonalds-> pay less than if you were to buy each item individually o Price in the marketing mix Profit equation Profit= total revenue - total cost = (unit price * quantity sold) – (fixed cost + variable cost) price affects the quantity sold and quantity sold usually affects costs b/c of efficiency of production, price also indirectly affects costs pricing decisions influence both total revenue (sales) and total costs, which makes pricing one of the most important decisions
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This note was uploaded on 11/24/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell.

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marketing ch 13 text notes - MarketingCh13: o Priceequation...

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