MKT 201 Study Guide - Final Guide: Personal Grooming, Franchising, Home Improvement

• School: University of Miami
• Department: Marketing
• Course: MKT 201
• Professor: Smita Kulkarni

Document Summary

Price: overall sacrifice a consumer is willing to make to acquire a specific product or service (benefits) 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 marketing mix element that generates revenue. Sales-oriented: increasing sales will help the firm more than increasing profits will. Pricing means the firm deliberately prices a product above the prices set for competing products to capture those customers who always shop for the best or for whom price does not matter. Competitor-oriented: strategy based on the premise that they should measure themselves primarily against their competition. Competitive parity means they set prices that are similar to those of their major competitors. Status quo pricing means changing prices only to meet those of the competition. 2nd c: customers: customers want value for money, customers compare the performance of a product to its price to determine the overall value.