Ch15_NE - Pricing Concepts Chapter 15 Prepared by Deborah...

Info icon This preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Prepared by Deborah Baker Prepared by Deborah Baker Texas Christian University Texas Christian University Canadian Adaptation by Miguel Morales Canadian Adaptation by Miguel Morales Saint Mary’s University Saint Mary’s University COPYRIGHT  ©  2006 by Nelson, a division of Thomson Canada Limited. All rights reserved  Pricing Concepts Chapter 15
Image of page 1

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

View Full Document Right Arrow Icon
2 COPYRIGHT  ©  2006 by Nelson, a division of Thomson Canada Limited. All rights reserved  Learning Objectives 1. Discuss the importance of pricing  decisions to the economy and  to the individual firm. 2.  List and explain a variety of pricing  objectives. 3.  Explain the role of demand in price  determination.
Image of page 2
3 COPYRIGHT  ©  2006 by Nelson, a division of Thomson Canada Limited. All rights reserved  Learning Objectives (continued) 4.  Understand the concept of yield  management systems. 5.  Describe cost-oriented pricing  strategies. 6.  Demonstrate how the product life  cycle, competition, distribution and  promotion strategies, customer  demands, the Internet and extranets,  and perceptions of quality can affect  price.
Image of page 3

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

View Full Document Right Arrow Icon
4 COPYRIGHT  ©  2006 by Nelson, a division of Thomson Canada Limited. All rights reserved  In the broadest sense,  price allocates resources  in a free-market economy The Importance of Price To the consumer... Price is the cost  of something To the seller... Price is revenue and profit source
Image of page 4
5 COPYRIGHT  ©  2006 by Nelson, a division of Thomson Canada Limited. All rights reserved  What Is Price? Price is that which is given  up in an exchange to acquire  a good or service.
Image of page 5

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

View Full Document Right Arrow Icon
6 COPYRIGHT  ©  2006 by Nelson, a division of Thomson Canada Limited. All rights reserved  The Importance of Price to Marketing Managers Revenue Profit   The price charged to customers  multiplied by the number of units  sold. Revenue minus expenses
Image of page 6
7 COPYRIGHT  ©  2006 by Nelson, a division of Thomson Canada Limited. All rights reserved  The Importance of Price To earn a profit,  marketers must select a price  that is not too high  or not too low,  a price that equals  the perceived value to target consumers Revenue  =  Unit Price   Number of units sold Revenue pays for every activity.   What’s left over is Profit.
Image of page 7

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

View Full Document Right Arrow Icon
8 COPYRIGHT  ©  2006 by Nelson, a division of Thomson Canada Limited. All rights reserved  Trends Influencing Price Setting Flood of new  product introductions Increased availability of bargain-priced private and generic brands Price cutting as a strategy to maintain or regain market share A general decline in consumer  confidence after terrorist attacks Trends  in the Market
Image of page 8
9 COPYRIGHT  ©  2006 by Nelson, a division of Thomson Canada Limited. All rights reserved 
Image of page 9

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

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern