Textbook Notes (367,844)
Canada (161,454)
MGMA01H3 (184)
Angela Xu (6)
Chapter 11

Chapter 11 Marketing.docx

7 Pages
Unlock Document

Management (MGM)
Angela Xu

Chapter 11Pricing Strategy Learning Objectives 1 Answer the question What is a price and discuss the importance of pricing in todays fastchanging environment 2 Identify and define the important factors affecting pricing decisions including the impact of customer perceptions of value the company and product costs and other internal and external factors 3 Describe the major strategies for pricing new products 4 Explain how companies find a set of prices that maximizes the profits from the total product mix 5 Discuss how companies adjust their prices to take into account different types of customers and situations 6 Discuss the key issues related to initiating and responding to price changes What is a pricePricethe amount of money charged for a product or service or the sum of the values that customers exchange for the benefits of having or using the product or servicePrice is the only element in the marketing mix that produces revenue all other elements represent costsFrequent problem is that companies are too quick to reduce prices to get a sale rather than convincing buyers that their products greater value is worth a higher price Pricing is sometimes too cost oriented rather than customervalue oriented Factors to consider when setting prices Customer perceptions of the products value set the ceiling for prices while product costs set the price floor for products Customer Perceptions of ValuePricing decisions like other marketing mix decisions must start with customer value Effective customeroriented pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures this value ValueBased PricingSetting price based on buyers perceptions of value rather than on the sellers cost
More Less

Related notes for MGMA01H3

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.