MKT 100 Chapter Notes - Chapter 11: Premium Pricing, Monopolistic Competition, Marketing

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

Document Summary

Role of price: achieve financial goals of the company/ profitability, fit the environment will customers buy at this price, support the product positioning, be consistent with other variables of the marketing mix. The 5 c"s of price: company objectives. Profit orientation focusing on target profit pricing, maximum profits and target return pricing. Target profit pricing a particular profit goal is the overriding concern. Uses price to stimulate sales at a certain profit per unit. Maximizing profit strategy a mathematical model that identifies the price at which its profits are maximized. Target return pricing designed to produce a specific return on investment, usually a percentage of sales. Sales orientation increasing sales will be more beneficial that. Competitor orientation firms should measure itself against. Competitive parity setting prices similar to those of similar competitors. Mkt100 ch11: elastic price sensitive: small changes in price=large, inelastic price insensitive: small changes in price=small changes in demand. changes in demand. Total: breakeven analysis and decision making.