MKT 100 Lecture Notes - Lecture 10: Blu-Ray, Marketing Mix, Price Fixing

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Laila Rohani

Document Summary

Mkt-lecture 10 pricing concepts and strategies for establishing value. Price can be both too high and too low. Price too low may signal poor quality. Price set too high might signal low value. Price is usually ranked as one of the most important factors in purchase decisions. Price is the only element in the marketing mix that generates revenue. Profit orientation: a company objective that can be implemented by focusing on target profit pricing, maximize profits, target return pricing, target profit pricing. Sales orientation: believe that increasing sales will help firms more than increasing profits. Competitor orientation: a company objective based on the premise that the firm should measure itself primarily against its competition. Customer orientation: pricing orientation that explicitly invokes the concept of customer value and setting prices to match consumer expectations. Prestige product or services: those that consumers purchase for status rather than functionality. Variable costs: vary with production volume fixed costs, unaffected by production.