BU352 Study Guide - Final Guide: Marketing, Premium Pricing, Demand Curve
Document Summary
The key to successful pricing is to match the product or service with the consumer"s value perceptions. The five cs of pricing: company objectives: each firm embraces objective where management thinks the firm needs to go to be successful, however its defined. Focusing on target profit pricing, maximizing profits, or target return pricing. Sales orientation: believe increasing sales will help the firm more than increasing profits, more concerned w/ overall market share than $ b/c market share reflects success. May set prices low to discourage new entrants, encourage current firms to lve, take market share from competitors all to gain market share. Competitor orientation: strategize according to the premise that they should measure themselves primarily against competition some firms focus on competitive party: set prices similar to their major competitors. Customer orientation: concept of customer value and setting prices to match consumer expectations.
