Marketing Study Guide

Marketing Study Guide - Marketing Study Guide Chapter...

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Marketing Study Guide Chapter 13 - Price : The money or other considerations exchanged for the ownership or use of a product or service - Barter : Practice of exchanging products and services for other products and services rather than for money - Value-pricing : The practice of simultaneously increasing product and service benefits while maintaining or decreasing price - Value : The judgment by a consumer of the worth and desirability of a product or service relative to substitutes that satisfy the same need - Six steps for setting prices : 1. Identify pricing objectives and constraints a. Pricing objectives : Specifying the role of price in an organization’s marketing and strategic plans - Profit: Depends on Return on investment (ROI) and Return on assets (ROA) - Market share: The ratio of the firm’s sales revenues or unit sales to those of the industry - Unit volume: The quantity produced or sold - Sales, survival, and social responsibility b. Pricing constraints : Factors that limit the range of prices a firm may set - Demand for the Product Class, Product, and Brand: The greater the demand for a product, the higher the price that can be set - Newness of the Product: Stage in the Product Life Cycle: The newer a product and the earlier it is in its life cycle, the higher is the price that can usually be charged -Single Product versus a Product Line -Cost of Producing and Marketing the Product: In the long run, a firm’s price must cover all the costs of producing and marketing a product -Cost of Changing Prices and Time Period They Apply -Type of Competitive Market
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1. Pure competition : Many sellers who follow the market price for identical, commodity products 2. Monopolistic competition : Many sellers who compete on nonprice factors 3. Oligopoly : Few sellers who are sensitive to each other’s prices 4. Pure monopoly : One seller who sets the price for a unique product - Competitors’ Prices 2. Estimate demand and revenue - Demand Curve : Graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price - Demand Factors : Factors that determine consumers’ willingness and ability to pay for products and services -Total revenue (TR), Average revenue (AR), and Marginal revenue (MR) 3. Determine cost, volume, and profit relationships - Marginal Analysis : A continuing, concise trade-off of incremental costs against incremental revenues - Break-even analysis : A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output 4. Select an approximate price level 5. Set list or quoted price 6. Make special adjustments to list or quoted price Chapter 15 : - Marketing channel : Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users -Intermediaries: 1. Middleman : Any intermediary between manufacturer and end-user markets 2. Agent or broker : Any intermediary with legal authority to act on behalf of the
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Marketing Study Guide - Marketing Study Guide Chapter...

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