MKT 100 Lecture Notes - Lecture 10: Loss Leader, Universal Product Code, Extranet

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

Document Summary

What is a price: a complex issue, requiring analytical and strategic thinking, can be called tuition, rent, interest, a fee, dues, a fare, or a price, generally money is exchanged. Prices 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. Target profit pricing: a pricing strategy implemented by firms when they have a particular profit goal as their overriding concern; uses price to stimulate a certain level of sales at a certain profit per unit. Maximizing profits strategy: a mathematical model that captures all the factors required to explain and predict sales and profits, which should be able to identify the price at which its profits are maximized.