MKTG10001 Lecture Notes - Lecture 8: 1978 Atlantic Hurricane Season, Boeing, Mondelez International

• School: University of Melbourne
• Department: Marketing
• Course: MKTG10001
• Professor: Nicole Mead

Document Summary

Lawyers charging on word count in the documents they wrote. Number of words not really indicative of quality of work and time spent. Redirection from amount of time to value that they"re adding to the world. You want to direct your customers to overall value. If benefits increase over cost then better perceived value value = benefit/cost. Problematic when you don"t focus on all of the above and just focus on price. Cost-based pricing is a bit problematic on its own. Competition-based pricing is also problematic on its own. This will make you constantly underprice your product because you assume no desperate competitors. The best approach is customer-based (value) pricing. They do not care how much it cost to make the product, they think about what that product is gonna do for them. No one knows cost of new iphone lol. To be fair you need to consider margin (cost-base) and anchors (competitor price etc) as well as value.