Mkt 380 study guide

Mkt 380 study guide - equal to competitor’s to stabilize...

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CH X 1. Price: a. The amount of money charged for a product or service, or the sum of the values that a consumer exchanges for the benefits of having or using the product or service. b. Non-Price factors have become more important recently. c. Dynamic Pricing: i. Charging different prices depending on individual customers and situations. d. Fixed Price: Same for all buyers. e. Prices can change daily, hourly, monthly. f. The only element in the Marketing Mix that produces revenue. i. All other elements represent costs ii. Commonly, marketers are too quick to reduce prices in order to get a sale rather than convincing buyers their product is better. iii. Pricing should be customer-value oriented rather than cost oriented. g. Internal Factors Affecting Price: i. Mkt. Objectives 1. Before setting a price, co. must decide product strategy/ marketing position 2. Co. may seek general or specific objectives a. General: survival, current profit, etc. b. Can set Prices low to prevent Entrance or set prices
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Unformatted text preview: equal to competitor’s to stabilize mkt. 3. Current Profit MAX is usual goal. 4. Product Quality Leadership a. Higher Prices charged due to a higher performance product: more R&D, cost, etc ii. Marketing Mix Strategy 1. Price decisions must be coordinated w: a. Product design b. Distribution c. Promotion decisions 2. Target Costing: a. Pricing that starts w/ an ideal selling Price, then targets costs that will ensure a new price is met. iii. Costs 1. Set the floor for the price a co. can charge 2. Price must cover: a. Production b. Distribution c. Selling d. Risk on ROI 3. Experience/ Learning Curve: a. Drop in average per-unit cost, comes w/ accumulation of production experience iv. Organizational Considerations h. External Factors: i. Nature of the Mkt. and Demand ii. Competition iii. Environmental Factors 1. economy, resellers, gov’t i....
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Mkt 380 study guide - equal to competitor’s to stabilize...

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