MKT 100 Lecture Notes - Lecture 10: Pricing Strategies, Monopolistic Competition, Marketing

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Paul Gillespie

Document Summary

Price/ quality relationship: uncertain consumers tend to rely on price to indicate quality. Demands of large customers: large customers pressure suppliers for price reductions and guaranteed margins. Promotion strategy: price is used as a promotional tool. Internet and extranets: consumers use shopping bots to hunt for bargains, increased competition, internet auctions. Competition: other firms enter market, price wars. Distribution: convenience, selling against the brand, exclusive distribution. Help to achieve the financial goals of the company. Support and reflect the positioning of the product. Be consistent with other variables of the marketing mix. If its too low it may signal to the customer that the product is of poor quality. If the price is too high might signal low value. Value is impacted by: quality, price, service/buying experience, convenience. Sales orientation: firms using this approach believe that increasing sales will help the firm more then increasing profits. Competitor orientation: the firm should measure itself primarily against its competition.