6600:205 Lecture Notes - Lecture 9: Marketing, Root Mean Square, Marketing Mix
16 Nov 2017
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Document Summary
Marketing chapter 14 pricing concepts for establishing value. Price is the only element of the marketing mix that does not generate costs, but instead generates revenue, it is important in its own right. Goals should spill down to the pricing strategy, such that the pricing of a company"s products and services should support and allow the rm to reach its overall goals. Speci c objectives usually re ect how the rm intends to grow. Focusing on target pro t pricing, maximizing pro ts, or target return pricing target pro t pricing- implement when rms have a particular pro t goal as their overriding concern. Problem with this approach is that actually gathering the data on all these relevant factors and somehow coming up with an accurate mathematical model is an extremely dif cult undertaking. When a rm sets its pricing strategy based on how it can add value to its products or services.
