MKT 100 Lecture Notes - Lecture 10: Monopolistic Competition, Oligopoly

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Paul Gillespie

Document Summary

Chapter 11: pricing concepts + strategies : establishing. Not an after thought to the rest of the marketing mix. Pricing signals quality or alack of quality. Price is usually ranked as one of the most important factors in purchase decisions. Price is the only element in the marketing mix that generates revenue. The key to successful pricing is to match the product or service with the consumer"s value perceptions. Profit orientation: maximize profits, target return pricing, target profit pricing. Its all about understanding consumers reactions to different prices. Price is half of the value equation. Knowing demand curves enables to see relationship between price and demand. This is measured by the price elasticity of demand. Factors influencing price elasticity of demand: income & On a budget so you buy a cheaper product. Self supporting college student buys a new printer on sale for. Learns it requires special ink cartridges* that cost more than the great price printer.