BU352 Lecture Notes - Lecture 11: Marketing, Grey Market, Price Fixing
Document Summary
Chapter 11 pricing concepts and strategies: establishing value. Successful pricing strategies are built through the 5 critical components: company objectives. Profit orientation focuses on target profiting pricing, maximizing profits, or target return pricing. Target profit pricing used when firms have a particular profit goal as their overriding concern, uses price to stimulate a certain level of sales at a certain profit per unit. Maximizing profits strategy model that captures all the factors required to explain and predict sales and profits. Target return pricing where they are less concerned with profits and more interested in the rate at which their profits are generated relative to their investments. Sales orientation company objective based on the belief that increasing sales will help the firm more than will increasing profits. Competitor orientation company objective based on the premise that the firm should measure itself primarily against its competition. Competitive parity a fir(cid:373)"s strategy of setti(cid:374)g pri(cid:272)es that are si(cid:373)ilar to those of major competitors.
