MGTA02H3 Lecture : Chapter 7. The 4 P’s of Price

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MGTA02H3 Full Course Notes
MGTA02H3 Full Course Notes
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Pricing: deciding what the company will receive in exchange for its product. Pricing objectives: goals that producers hope to attain in pricing products for sale. Profit-maximizing objectives: price can"t be too high or too low, pricing for ebusiness objectives. Must consider costs , on the internet it is more easy and efficient to buy things and thus producers can charge lower costs. Market share objectives: market share : a company"s percentage of the total market sales for a specific product. Other pricing objectives: during difficult economic times , loss containment and survival may become a. Cost-oriented pricing: considers the firms desire to make a profit and takes into account the need to cover production costs, mark-up = mark-up/ales price. Break-even analysis : cost-volume-profit relationship: variable costs : those costs that change with the number of goods or services produced or sold o.