MKT 100 Lecture Notes - Lecture 10: Marketing Mix, Profit Margin, Railways Act 1921

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Marla Spergel

Document Summary

The role of price in the marketing mix: 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, company objectives. Each firm has a specific orientation in the marketplace that dominates its pricing strategy. Tiffany keeps its prices high even during a recession to protect its prestigious image. Profit oriented- example all products must provide for at least an 18% profit margin to reach set goal. Sales oriented set prices very low to generate new sales thus taking away sales from competitors. Competitor oriented- set prices very low to discourage more competitors from entering the market. Customer oriented- target a segment of the market of consumers who highly value a particular product benefit and set prices relatively high: customers. It"s all about understanding consumers reactions to different prices. Price is half of the value equation.