BSM 200 Lecture Notes - Lecture 4: Direct Market, Marketing Mix, Contribution Margin
Document Summary
Value - how much you charge product in money. Marketers use this to make their product look valuable. When selling b2b (business 2 business), can use these pricing tactics: Seasonal discounts reduction of the invoice that the buyer pays promptly reductions offered as financial incentives to stock the product in advance to the season. Manufacturer can reduce the amount of inventory they have to stock prior to peak season demand. Getting money earlier allows the seller to pay its bills, invest, and avoid borrowing costs. Are price reductions for marketing functions that the buyer undertakes to the seller. Quantity discounts reduced prices in relation to the quantity purchased. When selling b2c (business 2 consumer), can use these pricing tactics. Marketers set different price points for similar products to represent quality differences. Allows marketers to satisfy a range of tastes, perceived expertise and budgets. Marketer combines a slow moving and fast moving item in one package.