ADM 1100 Lecture Notes - Lecture 9: Fixed Cost, Variable Cost, Marketing Mix
26 Jan 2017
School
Department
Course
Professor
Document Summary
Consumers perceptions of quality closely tied to price. High price = prestige and higher quality. Low price= less prestige and lower quality. A pricing method that uses uneven amounts to make prices appear to be less than they really are. Skimming pricing: a strategy that sets an intentionally high price relative to competing products. Penetration pricing: a strategy that sets a low price as major marketing tactic. Everyday low price (edlp): a strategy of maintaining continuous low prices instead of using short-term price cutting tactics such as cents-off coupons, rebates, special offers. Competitive pricing: a strategy that tries to reduce the emphasis on price competition by matching other firms prices and by focusing their own marketing efforts on the product, distribution, and promotional elements of the marketing mix. Cost-based pricing: calculating total costs per unit and then adding markups to cover overhead costs and generate profits.
