MGTA02H3 Chapter Notes - Chapter 17: Warehouse Club, Mail Order, Telemarketing
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MGTA02H3 Full Course Notes
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Pricing to meet business objectives (profit maximizing; market share, survival: pricing: deciding what the company will receive in exchange for its product, pricing objectives: goals that producers hope to attain in pricing products for sale, profit maximizing objectives. : company must set price at a level where it makes maximum profit for each item, and sells the maximum number of items (ex. John deere priced agricultural equipment low enough to ensure survival. Pricings strategies (new products, old products: pricing existing products. : 2 options- price skimming, penetration-pricing: price skimming strategy: the decision to price a new product as high as possible to earn the maximum profit on each unit (revenue often used to cover initial costs, ex. Amazon. com) but in prices (sales can also be altered privately); ex. ebay. com dynamic pricing is gaining popularity. Avon, tupperware, gateway, airline rsvn. : channel 2: retail distribution of consumer products: producers use retailers to distribute products (ex.
