MKT 100 Lecture Notes - Lecture 10: Marketing, Oligopoly, Fixed Cost

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

Document Summary

Week 10 pricing concepts and strategies for establishing value. What is a price: a complex issue, requiring analytical and strategic thinking, it can be called tuition, rent, interest, a fee, dues, a fare, or a price. Price can be a signal: prices can be both too high and too low, prices too low may signal poor quality, prices set too high might signal low value. The price is ranked as one of the most important factors in purchase decisions. Price is the only element in the marketing mix that generates revenue. The 5 cs of pricing ( co, cos, com obj, cus, cha mem: competition, costs, company objectives, customers, channel members, company objectives. Profit orientation: maximize profits, target return pricing, target profit pricing. Vary with production volume: fixed costs. Unaffected by production volume: total cost. Sum of the variable and fixed costs: c: competition. Many firms selling differentiated products at a different prices.