RSM250H1 Chapter Notes - Chapter 12: Price Ceiling, Target Costing, Price Floor
Document Summary
What is a price the amount of money charged for a product or service or the sum of the values that customers exchange for the benefits of having or using the product or service. Price has been the major factor affecting buying choice, but recently, non-price factors have gained importance. Price is the only element in the marketing mix that produces revenue; all other elements represent costs. More flexible compared to product features and channel commitments. Plays key role in creating customer value and building customer relationships. Price charged is between one that is too high to produce any demand and one that is too low to produce a profit. Internet and external factors is considered in setting a price between the two extremes such as: overall marketing strategy and mix, nature of the market and demand and competitors strategies and price.
