MKTG 317 Lecture Notes - Lecture 6: Clorox, Break Even, Walmart

• School: University of Calgary
• Department: Marketing
• Course: MKTG 317
• Professor: Edmund Gee

Document Summary

Picture of free clorox cleaner with purchase but at the bottom it says buy 1 get one 50% off. Price: the amount charged for a product or service. Usually a dollar amount: helps to determine market share and profitability. The lower the price, the higher the market share. The higher the price, the more profit you make per unit, but lower market share: the only p that produces revenue, all other are costs. Can be changed quickly: this can be positive or negative, positives. To adapt to factors that are not under your control. To make competitors react to you: negatives. Consumers can"t place a value on your product because prices keep changing (cid:1) (cid:1) (cid:1) (cid:1) Cost-based pricing: setting a price based on: Costs include: fixed and variable costs. E. g. for toasters, vc = raw materials; fc = rent on factory warehouse; front office staff salaries; Adding a % or $ amount to the cost (fc + vc)