MKTG 341 Lecture Notes - Lecture 8: Price Elasticity Of Demand, Price Discrimination, Marketing Mix

• School: University of Calgary
• Department: Marketing
• Course: MKTG 341
• Professor: Xianfang Zeng

Document Summary

Internal factors: marketing objectives, marketing mix, organizational considerations, external factors, demand, economy, resellers, government. Economy: economic factors consist of boom or recession, inflation, interest rates, etc, affect production costs and consumers" perceived price and value. Other external factors: resellers, require fair profits to promote products, the government and social concerns, price discrimination, deceptive pricing, etc. Major pricing strategies: customer value-based pricing, cost-based pricing, competition-based pricing. Customer value-based pricing: value-based pricing is customer oriented, hard to measure and analyze consumer needs, value perceptions, employ research approaches (e. g. , survey and experiment) to identify perceived value. Cost-based pricing: cost-based pricing is product-driven, based on costs for producing, distributing, and selling the product. New-product pricing strategies: market-skimming pricing, market-penetration pricing. Home depot, dell: the low price must help keep out the competition. Product mix pricing strategies: product line pricing, optional-product pricing, captive-product pricing, by-product pricing, product bundle pricing.