MKT 100 Lecture Notes - Lecture 8: Paper Towel, Oligopoly

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Yanina Chevtchouk

Document Summary

When competitive situation is an oligopoly like oil and gas industry, price war occurs where one lowers the price and the rest is required to follow. Manufacturer might want to present quality image with a high price, retailer may wanna drive traffic and mark down high price. Internet has an impact on traditional pricing startgey. Consumer has access ot much more information and many more competitive products. E commerce can now be ordered anywhere electronically. Marketers can use price lining: set different price for similar products to represent quality differences. Ex: fisher offers fisher skies for different prices, to represent basic medium and expert needs. Price bundling: marketer combines a slow moving and fast moving into one package, price of two products is cheaper then buying it individually. Leader pricing: prices a popular product very low to drive traffic. Ex: supermarket make bread and milk very low which will pick up other products cuz its very low.