MKTG 2150 Lecture Notes - Lecture 10: Profit Margin, Marketing Mix, Break Even

• School: Mount Royal University
• Department: Marketing
• Course: MKTG 2150
• Professor: Jo- Anne Baillie

Document Summary

Pricing: price the money or other considerations exchanged for the ownership or use of a product. Price as an indicator of value: value = perceived benefits / price. Features vs. benefits: sell the result, not the product. Marketing mix decisions: what your product, price, and distribution strategy is, how you are positioned amongst competitors. Competitive factors: price, quality, first to market, history, market niche, added value, conscience, trust, convenience. Price objectives: profit, sales, market share, volume, survival, social responsibility. General pricing approaches: demand-oriented what the market will bear, cost-oriented to cover the cost of goods sold, profit-oriented to maintain a specific profit margin, competition-oriented to be at par with others. Estimating demand and revenue: creating the correct price for a product begins with the process of forecasting, poor estimates can be detrimental, both quantitative and qualitative analysis are used to make projections.