MARK301 Chapter Notes - Chapter 10: Marketing Mix, Root Mean Square, Monopolistic Competition
14 Sep 2016
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Pricing has a direct, immediate e ect on the revenue of the rm. Narrow de nition: price is the amount of money charged for a product or service. Broad de nition: price is the total value that consumers change for the bene ts of having or using the product or service. A company"s pricing practice is typically a combination of the three major price strategies. Setting prices based on buyers" perceptions of value rather than the seller"s cost. Price is considered along with the other marketing mix variables before the marketing program is set. Good value pricing: o ering just the right combination of quality and good service at a fair price. Value-added pricing: attaching value-added features and services to di erentiate a company"s o ers and charging higher prices. Consumers do not reveal how much they value a product. Consumers need to be educated about the value of the product.
