MKT 100 Lecture Notes - Lecture 9: Joe Fresh, Netflix, Costco

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Polina Buchan

Document Summary

Company objective, consumer preference, company cost, type of competition and goal of channel member. S k im ming m eans s etting initial pric e. For a new product to allow recovery of research and development cost. High price denote quality and cutting cost innovation which speaks to consumer preferences. I. e. apple uses this strategy; serve to curtail high demands so production capacity can keep up. Flexibility of with flat screen t. v. to lower price later. Focus on market share; price is lower as their objective is to increase sales volume, achieve rapid growth and discourage competition. I. e. end of season sale for retailer; company with high markets they can leverage their suppliers and venders for better deals; also cost efficiency which can be passed on to consumers. Relative low initial price is established for a new product or service. Aim is to generate sales volume based on price being removed as a barrier to trial.