ADMS 2200 Lecture Notes - Lecture 12: Petro-Canada, Profit Maximization, Carpool

• School: York University
• Department: Administrative Studies
• Course: ADMS 2200
• Professor: Richard Patterson

Document Summary

Microsoft"s initially high price for the xbox 360. Dell"s low priced pc"s increase market share & High priced luxury autos such as lexus & stereo. Reduced or zero tolls for high occupancy vehicles to encourage carpooling. The following is a general sequence of steps that might be followed for developing price of a product: Develop marketing strategy-perform marketing analysis, segmentation, targeting, and positioning. Make marketing mix decisions-define the product, distribution, and promotional tactics. Estimate the demand curve-understand how quantity demanded varies with price. Calculate cost-include fixed and variable costs associated with the product. Understand environmental factors-evaluate likely competitor actions, understand legal constraints, etc. Set pricing objectives-for example, profit maximization, revenue maximization, or price stabilization (status quo). Determine pricing-using information collected in the above steps, select a pricing method, develop the pricing structure, and define discounts. Elasticity measure of responsiveness of purchasers and suppliers to a change in price. ^portion of a person"s budget spent on an item.