MKT 100 Lecture Notes - Lecture 7: Monopolistic Competition, Marketing Mix, Value-Based Pricing

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Fathima Saleem

Document Summary

Price is a signal it can be both too high and too low. If the price is too low, it may signal poor quality. If the price is set too high, it might signal low value. The role of price in the marketing mix. 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. Price needs to: achieve the financial goals of the company profitability, fit the environment will customers buy at that price?, support the products positioning, be consistent with other variables of the marketing mix. Monopoly/no competition is where there is a single supplier who has control over price, quality and supply. Oligopoly is a market dominated by a few suppliers that require very large investments in equipment or technology. Monopolistic competition has many suppliers with a variety of product, each of which has a small market share.