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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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- Spring '08
- Marketing, Product quality leadership, Factors Affecting Price, product strategy/ marketing