BUS 343 Chapter Notes - Chapter 10: Pricing Strategies, Marketing Mix, Psychological Pricing

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 343
• Professor: All

Document Summary

Chapter 10 - understanding and capturing customer value. Internal: overall marketing strategy target costing: pricing that starts with an idea selling price, and then targets costs that will ensure that the price is met, objectives, marketing mix, other organizational considerations. External: nature of the market, 4 types of markets, pure competition, monopolistic competition, oligopolistic competition, pure monopoly, demand, economy, other environmental factors. Initiating price changes: price cut, excess capacity may lead to price wars, falling demand, want to dominate the market through lower costs, e. g. Costco: people might like this but may also think quality has been reduced, price increases, cost inflation, would normally lower sales but may have positive meanings for buyers. Responding to price changes: company may take any of four responses, reduce its price to match competitors, raise perceived value. Improve quality and increase price: launch low-pri(cid:272)e (cid:862)fighter (cid:271)ra(cid:374)d(cid:863)