MKT 100 Lecture Notes - Lecture 9: Marketing Mix, Price Level, Target Costing

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Steven Chuang

Document Summary

The money (or goods/services) exchanged for ownership of a good/service). Price involves perceptions of value and they can vary depending what you are buying. Therefore, internal factors and external factors affect the pricing decisions. Steps in setting prices: identify pricing constraints and objectives: Constraints like demand for product class and brand, newness, costs, and competition. Objectives like profit, market share, and survival: estimate demand and revenue: Revenue estimation: estimate, cost, volume, and profit relationships: Break-even analysis, relation to profit: selection an approximate price level: Cost oriented approaches: set list or quoted price: Company, customer, and competitive effects: make special adjustments to list or quoted price: In depth of the steps in setting prices: idco. Sales and/or market share (revenue, unit volume) Social responsibility: estimate demand and revenue. All else being equal: as price falls, demand increases. For luxury goods high price can signal quality. Marketing mangers want to know price elasticity of demand.