BUS 201 Chapter Notes - Chapter 13: Dynamic Pricing, Price Skimming, Marketing Mix
Document Summary
After product, the second major component of the marketing mix is pricing -- process of determining what a company will receive in exchange for its products. Pricing objectives: the goals that sellers hope to achieve in pricing products for sale. Some companies have profit maximizing objectives while others have market-share pricing objectives. Firms set prices to cover costs and achieve a targeted level of return for owners. Market-share (market penetration) objectives: companies may initially set low prices for new products to establish market share -- a companies percentage of the total industry sales for a specific product type. Pricing for e-business objectives: when pricing for online sales, marketers must consider different kinds of costs and different forms of customer awareness, when buying online, buyers often avoid the added costs of whole-salers and retailers. Price-setting tools: managers like to measure he potential impact of price before finalizing what they will charge for their product.