MGT 2020 Lecture Notes - Lecture 11: Market Power, Monopolistic Competition, Break Even
Document Summary
Price is the amount of money charged for a product or service. It is the sum of all the values that consumers exchange for the benefits of having or using a product or service. Price is the only element in the marketing mix that produces revenue; all other elements represent costs. (place, promotion, product). Understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value. Value based pricing uses the (cid:271)uyers" per(cid:272)eptio(cid:374)s of (cid:448)alue, (cid:374)ot the sellers (cid:272)ost, as the key to pricing. Price is considered before the marketing program set. Good value pricing offers the right combination of quality and good service to fair price. Existing brands are being redesigned to offer more quality for a given price or the same quality for a lesser price. Everyday low pricing (edlp) involves charging a constant everyday low price with few or no temporary price discounts.
