MKT 100 Chapter Notes - Chapter 11: Monopolistic Competition, Marketing Mix, Perfect Competition

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Julie Kellershohn

Document Summary

Prices can be both too high or too low. Price set too low may signal poor quality. Price set too high might signal low value. Price is usually ranked as one of the most important factors in purchase decisions. Only element in the marketing mix that generate revenue. Price needs to: achieve the financial goals of the company profitability, fit the environment will customers buy at that price, support the products positioning, be consistent with other variables in the marketing mix. Monopoly or no competition is where there is a single supplier who has control over price, quality and supply. Oligopoly is a market dominated by a few suppliers that requires very large investments in equipment or technology. Monopolistic competition has many suppliers with a variety of product, each of which has a small market share. Perfect competition is when many suppliers sell essentially the same product. When demand increases more than supply increases, prices rise.