MARKETNG 300 Study Guide - Midterm Guide: Profit Maximization, Demand Curve, Sherman Antitrust Act
Document Summary
Price is amount of money charged for something of value. List price discounts, allowances + transportation + taxes + tariffs. Profit maximization- make must profit as can, not always high prices. Target return- specific level of profit is objective. List price discounts, allowances, coupons, rebates + transportation + taxes. = something of value, good, service, quality, repair, warranty, place of delivery. Be able to define and recognize each of the possible pricing objectives outlined in exhibit 16-4 on: 415 of your text. Skimming- sell to top of marketing/demand curve at high price first. Seek some level of sales or share of market, not referring to profit. Easier to determine market share than if have max profits. Increased share may be taken at cost of some profit. Demand curve elastic, few people willing to pay high price. Don"t rock the boat, common when market not growing. Non-price competition- aggressive action on other 3 p"s.
