MGTA02H3 Lecture Notes - Break Even, Fixed Cost, Marketing Mix
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MGTA02H3 Full Course Notes
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Product life cycle nothing sells itself who will buy product? focus on customer needs. 3 types of consumer product introduction, grwoth,maturity, decline. That part of the marketing mix concerned with choosing the appropriate price for a product to meet the firm"s profit objectives and buyers" purchasing objectives. The amount of money that a seller is willing to accept in exchange for a product, at a given time under given circumstances. What kind of profit do you want to make? (don"t forget taxes). Take all the cream, charge as much as you can. Example: builds market share, customer loyalty forgo chance of short-term profits. 10,000 units generates 150,000 revenues and 100,000 + 100,000 costs. 20,000 units generates 300,000 revenues and 100,000 + 200,000 costs. Some products are in a perfectly competitive market, large source of supply, difficulties of product differentiation, etc. you must take the prevailing cost. Price is not the only way to differentiate one"s product.
