MGMA01H3 Study Guide - Final Guide: Dagmar Marketing, Simple Random Sample, Cluster Sampling
Document Summary
Product policy and branding (chapter 9 and 10) The only element of the marketing mix that directly affects revenue not costs. Social pricing (social issues like education ie. focus on promoting education instead of profit-maximization) Price as a component of positioning (set high price to show its status) Exchange rate fluctuations (if exchange rate of can to us dollars decrease, more expensive for canadians to buy us products) The main idea is to recover costs and make money on top of it. It needs to know variable and fixed cost analysis. Making break-even analysis is an essential part. Other names: going-rate pricing or parity pricing. Primary focus is pricing relative" to how the competitors have priced and less focus on costs and consumers" perceptions. Game theory, and marketing muscle play a big role. Skim: set high prices initially. e. g. intel, sony (they capture cs step by step)
