MKT 300 Lecture Notes - Lecture 2: Barista, Cappuccino, Third Epistle Of John
Document Summary
In the first week, we talked about the importance of having a strategic direction, and choosing the right one. When we talk about profits, we"re really balancing our costs with our price (per unit) and our overall sales (price x units sold). While there are many pricing options (and we"ll get to these later in the semester), two basic ways of looking at price involve understanding mark-ups and margins, which we cover today. Inherent in the marketing strategy development process is the idea that our product or service will fulfill some consumer need. Before we can really choose a strategy, we need to determine who will be interested in our product, and whether it is worthwhile to pursue them. Fixed vs variable costs & margins and mark-ups. Is always a % based on the cost of a product or service. It is the dollar ($) amount you want to add to the cost to determine the selling price.
