MKC1200 Lecture Notes - Lecture 7: Demand Curve, Apple Watch, Chemist Warehouse

• School: Monash University
• Department: Business - Marketing - MKC
• Course: MKC1200
• Professor: Maureen Griffiths

Document Summary

Iphone and samsung relatively high: huawei and tcl --> much cheaper bc weaker brands and have to set prices low in order to survive in the market, companies want market share - market-share leadership, eg. Domino"s and pizza hut: dominos lowered their prices, pizza hut copied dominos. Sets the price ceiling - highest price the customers are willing to pay/ value of the product to the customer: organisation should also ensure the value obtained from the marketing exchange can cover the costs. Sets the price floor - a minimum price that must be charged to cover costs: competition offerings are crucial in pricing decisions. Organisations must make pricing decisions to make their products competitive in the marketplace: prices must be competitive. Set price between price ceiling and price floor. Video 2: demand-based pricing: demand: the relationship b/w the price of a particular product and the quantity of the produce that consumers are willing to buy.