MARK 201 Lecture Notes - Lecture 9: Demand Curve, Marketing Mix, Inverse Relation
16 Apr 2018
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Document Summary
Total value that customers exchange for the benefits of having or using the product or service. Seller designates: more than a simple calculation. Costs: buyer pays, more than just the dollar amount. Customer value based: pricing based on buyer perception. Based on the value the consumer perceives they will get from it. Design product to deliver value at target. More quality for less than customers expect to pay. Goods are priced according to the value they offer the customer. Instead of cutting prices to match competition, you attach value added features. Considerations: customers needs, customers perceptions, price based on perception of value. Strategies: good-value pricing: overall benefits, value added pricing. Salaries: office space rental, maintenance costs o. Variable costs: cost of parts, manufacturing supplies o. Generally not a good strategy o o. Setting a price to break even on all costs. Needs to determine where it will break even. Required break even volume: bevol = fc/(p-vc)
