Management and Organizational Studies 2320A/B Lecture Notes - Lecture 11: Premium Pricing, Marketing, Grey Market

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: John White

Document Summary

Mos 2320 chapter 11 (pricing concepts and strategies: establishing value) Not an afterthought to the rest of the marketing mix. Pricing signals quality or a lack of quality. The role of price in the marketing mix. Price is usually ranked as one of the most important factors in purchase decisions. Price is the only element in the marketing mix that generates revenue. Profit orientation (i. e. , institute companywide policy that all products must provide 18% profit margins to reach particular profit goal for the firm) Target profit pricing pricing strategy implemented by firms when they have a particular profit goal as their overriding concern; uses prices to stimulate a certain level of sales at a certain profit per unit. Maximizing profits strategy a mathematical model that captures all the factors required to explain and predict sales and profits, which should be able to identify the price at which its profits are maximized.