aem take note Pricing Strategies

aem take note Pricing Strategies - I II III IV Pricing...

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I. Pricing Strategies: a. Price is where demand and supply intersect. b. Paintings violate the basic theory of economics, bc paintings are very expensive and are an example of a product for which we don’t have the conventional pricing approach. II. What is price? a. Price is the only marketing mix variable that brings in revenue and it affects profit through both demand and supply. The other 3 P’s are creative in the sense of marketing, but price is the only one that covers costs. b. VALUE= BENEFITS/PRICE c. Consumers buy things based on value, which is what you get for what you pay. III. Pricing objectives… like firm objectives a. Profit- long run profit, current profit, and target return i. We, as marketers, might want to increase profits during a certain period, or the long run, etc. The trade off btw short-run and long- run profits is clear. Target return pricing is the same idea. b. Sales- where you set the price leads to diff levels of sales revenue, which we want to maximize c. Market share- is a business objective that some company’s focus on.
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This note was uploaded on 03/30/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell.

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aem take note Pricing Strategies - I II III IV Pricing...

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