MCS 1000 Lecture Notes - Lecture 13: Freemium, Monopolistic Competition, Price Equation

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Raffi Sarmazian

Document Summary

Money or other considerations exchanged for the ownership of use of a good or service. Value: ratio of perceived benefits to price. Increasing product or service benefits while maintaining or decreasing price. Profit equation: profit = total revenue - total costs or, profit = (unit price x quantity sold) - total cost. Pricing constraints factors that limit the latitude of price a firm may set. Demand for the product class, product, and brand. Newness of the product: stage in the plc. Cost of producing and marketing the product. Cost of changing prices and time period they apply. Types of competitive markets: pure monopoly, oligopoly, monopolistic. Pricing objectives expectations that specify the role of a price in an organization"s marketing and strategic plans. Profit: managing for long-run profits, maximizing current profit, target return. The summation of points representing the maximum number of products consumers will buy at a given price.