Class Notes (1,100,000)
CA (620,000)
Ryerson (30,000)
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MKT 100 (1,000)
Lecture

Pricing & Distribution


Department
Marketing
Course Code
MKT 100
Professor
Marla Spergel

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Pricing and Distribution
4 Ps (Marketing Mix):
Product
Place
Promotion
Price: Penetration (whole market) or Skimming (cream of the crop) // Good price: As
close to the max a customer is willing to pay
Elastic As price decreases, demand increases
Availability of substitutes more substitutes available, greater elasticity
Degree of Necessity or Luxury Luxury products have higher elasticity than
necessities. Habit forming product can become necessities
Proportion of Income Product that represent a higher proportion of a consumers
income will have greater elasticity
Timing A one day sale will have different results than a permanent price decrease
for a longer period of time
Price points Decreasing from $2.00 to $1.99 will have more elasticity than $1.98 to
$1.97
Distribution Activities:
Logistics
Promotion/Information
Financing
Matching
Negotiation
Risk Taking
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