COMM 296 Chapter Notes - Chapter 13: Premium Pricing, Marketing, Demand Curve
Document Summary
Five c"s of pricing: company objective: reflect how the firm intends to grow. Profit orientation: focusing on target profit pricing, maximizing profits, or target return pricing; three strategies: Target profit pricing: a pricing strategy that uses price to stimulate a certain level of sales at a certain profit per unit. Sales orientation: a company objective based on the belief that increasing sales will help the firm more than will increasing profits. Unit sales: set low prices to generate more unit sales and take sales away from competitors even if profits suffer. Dollar sales: set high prices with less unit sales but generate high dollar sales (ie. jewelry stores) Market share: may or may not (premium brands) set low prices to discourage new entry and take away market share from competitors always shop for the best or for whom price does not matter. For sales to increase, customers must see greater value.
