MKBU 3225 Lecture Notes - Lecture 12: Geographical Pricing, Cash Flow, Status Quo
Document Summary
Price: value that is placed on what is exchanged & is revenue generation of the 4 p"s, 3 situations when pricing important. Company initiates price change (done b/c competition/costs/economic conditions) goes hand in hand w/ competition initiating price change. Competition initiates price change (done b/c competition/costs/economic conditions) goes hand in hand w/ company initiating price change: legal aspects of pricing. Increasing price to take advantage of consumer illegal. Advertising product @ certain price w/ intent of getting customer into store & having customer buy up (never intended to sell that product) Not everybody has same opportunity to pay same price. Setting price to hold on in market place: profit, roi, market share. Percentage to dollar amount (cid:3047)(cid:3042)(cid:3047) (cid:3046)(cid:3046)(cid:3032)(cid:3047)(cid:3046)% (cid:3041)(cid:3032)(cid:3047) (cid:3043)(cid:3045)(cid:3042)(cid:3033)(cid:3047) Select price to gain market share: cash flow. Generate cash then cash out: status quo, image. Id target market"s evaluation of price & ability to purchase: knowing target market very important (do they have disposable income to purchase.