RSM250H1 Lecture 6: RSM250H1F Lecture 6 Notes
Document Summary
Firm"s marketing efforts are directed toward creating value for its chosen customers. In the marketing mix, the value falls into the 4 p"s: developing product, designing promotion, choose a distribution, design a pricing strategy first three of these marketing- mix variables represent costs to the firm. Pricing role is to tap in to value created and generate revenue (1) to fund the firm"s current value-creation activities (2)support research that will lead to future value creation (3) to generate a profit from the firm"s activities. Many components to complete a pricing program: there are many pricing decisions and thoughts needed, many corporations use the following price formula. Profits = [unit price cost of goods sold]* unit sales volume. The value the product delivers to the consumer. Known as the true economic value (tev) which measures the benefits that the product delivers to the consumer: perceived value. Is the value the consumer understands the product to deliver.
