MKT 3310 Lecture Notes - Lecture 10: Sherman Antitrust Act, Image Editing, Store Brand

• School: Baylor University
• Department: Marketing
• Course: MKT 3310
• Professor: Randy Hacker

Document Summary

Step 1: set pricing objectives: profit. Set prices to allow for an 8% profit margin on all goods sold: sales or market shares. Develop bundle pricing offers in order to increase market share. Alter pricing strategy during first quarter of the year to increase sales during (cid:272)o(cid:373)petito(cid:396)"s i(cid:374)t(cid:396)odu(cid:272)tio(cid:374) of a (cid:374)e(cid:449) p(cid:396)odu(cid:272)t: customer satisfaction. Alter price levels to match customer expectations. Alter pricing poli(cid:272)ies to (cid:396)efle(cid:272)t the i(cid:374)(cid:272)(cid:396)eased e(cid:373)phasis o(cid:374) the p(cid:396)odu(cid:272)t"s (cid:395)uality image. Step 2: estimate demand: shifts in demand, price elasticity of demand. Step 3: determine costs: variable cost, fixed costs, break-even analysis, markups and margins. Step 4: examine the pricing environment: the economy, the competition, government regulation, consumer trends, the international environment. Step 5: choose a pricing strategy: based on cost, based on demand, based on the competition, based o(cid:374) (cid:272)usto(cid:373)e(cid:396)s" (cid:374)eeds, new-product pricing. Step 6: develop pricing tactics: for individual products, for multiple products, distribution-based tactics, discounting for channel members.