MKTG101 Lecture Notes - Lecture 8: Price Discrimination, Profit Margin, Marginal Revenue
Document Summary
Price: management of price is called pricing and is based on overall organisational objectives, price is a measure of value to both buyers and sellers. Buyers see price as a measure of benefit, sellers need prices to cover cost and provide profits: price is directly related to profitability, profit(price x sales volume) - total costs, price is a major determinant of sales volume. In turn, sales volume influences cost, both per unit sold and the production cost of each unit. Pricing benefits: buyers benefit, satisfaction derived from the consumption or ownership of the product. Pricing objectives: determining pricing objectives, pricing objectives should be specific, measurable, actionable, reasonable and timetables. Pricing "the art of compromise: customer demand: The relationship between the price of a particular product and the quantity of the product that consumers are willing to buy. Demand-based pricing: an approach to pricing in which prices are set based on the level of demand in the market.
