MKT 100 Chapter Notes - Chapter 11: Marketing, Monopolistic Competition, Fixed Cost

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Paul Gillespie

Document Summary

The five cs of pricing (competition, costs, company objectives, customers & channel. Sales orientation a company objective based on the belief that increasing sales will help the firm more than will increasing profits. Competitor orientation a company objective based on the premise that the firm should measure itself primarily against its competition. Competitive parity a firm"s strategy of setting prices that are similar to those of major competitors. Customer orientation pricing orientation that explicitly invokes the concept of customer value and setting prices to match consumer expectations. Variable costs those costs, primarily labor and materials, that vary with production volume. Fixed costs those costs that remain essentially at the same level, regardless of any changes in the volume of production. Total cost the sum of the variable and fixed costs. Monopoly occurs when only one firm provides the product or service in a particular industry. Oligopolistic competition occurs when only a few firms dominate a market.