marketing - Chapter 13 Average Revenue AR average amount of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 13 Average Revenue – AR – average amount of money received for selling one unit of a product, or simply the price of that unit ( AR = TR / Q = P ) Barter – practice of exchanging goods and services for other goods and services rather than for money Break Even Analysis – technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output Break Even Chart – graphic presentation of the break even analysis Break Even Point – quantity at which total revenue and total cost are equal ; profit then comes from units sold beyond the BEP Demand Curve – graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price Demand Factors – factors that determine consumer’s willingness and ability to pay for goods and services (examples are factors influencing what consumers want/can buy and price) Fixed Cost – sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold Marginal Analysis – continuing, concise trade off of incremental costs against incremental revenues ; people will continue to do something as long as the incremental return exceeds the incremental cost Marginal Cost – change in total cost that results from producing and marketing one additional unit of a product ( change in total cost / 1 unit increase in quantity) Marginal Revenue – change in total revenue that results from producing and marketing one additional unit (MR = change in TR / 1 unit increase in Q) Price – money or other considerations (including goods and services) exchanged for the ownership or use of a good or service Price Elasticity of Demand – percentage change in quantity demanded relative to a percentage change in price (E = percentage change in quantity demanded / percentage change in price) Pricing Constraints – factors that limit the range of prices a firm may set Pricing Objectives – specifying the role of price in an organization’s marketing and strategic plans Profit Equation – profit = total revenue – total cost OR (unit price x quantity cost) – total cost Total Cost – total expense incurred by a firm in producing and marketing a product (sum of fixed and variable costs) Total Revenue – total money received from the sale of the product (TR = P x Q) Unit Variable Cost – variable cost expressed on a per unit basis ( variable cost / quantity) Value – ratio of perceived benefits to price (perceived benefits / price) Value Pricing – practice of simultaneously increasing product and service benefits while maintaining or decreasing price Variable Cost – sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold Chapter 16 Customer Service – ability of logistics management to satisfy users in terms of time, dependability,
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/04/2009 for the course MKTNG 330 taught by Professor Bita during the Spring '09 term at Montclair.

Page1 / 5

marketing - Chapter 13 Average Revenue AR average amount of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online