FB 2601 Week 11 0910

FB 2601 Week 11 0910 - FB 2601 Week 11 Pricing LO Learning...

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FB 2601 Week 11 Pricing
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2 Learning Outcomes Discuss the importance of pricing decisions to the economy and to the individual firm Demonstrate how the other factors (besides demand and cost) can affect price Describe the procedure for setting the right price Explain how discounts and other special pricing tactics can be used to fine-tune the base price LO
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3 LO Price allocates resources in a free-market economy To the consumer. .. Price is the cost of something To the seller. .. Price is revenue I. The Importance of Price
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4 Price LO What Is Price? Price is that which is given up in an exchange to acquire a good or service.
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5 What is Price? Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible elements of the marketing mix. Pricing is the number one problem facing many marketing executives. Companies are too quick to reduce prices in order to get a sale rather than convince buyers that their products are worth a higher price. Pricing is too cost oriented rather than customer- value oriented does not take the rest of the marketing mix into account. LO
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6 The Importance of Price to Marketing Managers LO Revenue The price charged to customers multiplied by the number of units sold. Profit Revenue minus expenses.
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7 LO Trends Influencing Price Flood of new products Increased availability of bargain-priced private and generic brands Price cutting as a strategy to maintain or regain market share Internet used for comparison shopping
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8 Major Considerations in Setting Price LO
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9 LO 4. Competition 3. Stages of the Product Life Cycle II. Determinants of Price (other than cost and demand) 5. Perceived Quality 6. Distribution 7. Promotion
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FB 2601 Week 11 0910 - FB 2601 Week 11 Pricing LO Learning...

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