MKT 100 Lecture Notes - Monopolistic Competition, The Home Depot, Marketing Mix

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Anthony Francescucci

Document Summary

Prices can be too low or too high. Price is usually ranked as one of the most important factors in a purchase decision. Price is the only element of the mix that generates revenue. Fit environment (will customers buy at that price) Support product positioning (support price that customers have of product ex: premium brand would want to have high price) Price has to be consistent with other marketing mix variables. Monopoly: single supplier which controls price, quality and supply ex: lcbo. Oligopoly: one or two major suppliers, with large start-up investments ex: microsoft, linux, Monopolistic competition: many suppliers with a variety of products, each of which have a small market share, which are all perceived differently by consumers (ex:restaurants) Perfect competition: no differentiation between products so consumers don"t really notice a difference with the deciding factor often being price (ex: grapes, apples, corn) Elastic demand: consumers very price sensitive (price changes will have significant changes in demand)