BU352 Lecture Notes - Lecture 11: Marketing, Mathematical Model, Marketing Mix
Document Summary
Chapter 11 pricing concepts and strategies: establishing value. The five cs of pricing: company objectives: These objectives are not always mutually exclusive, because a firm may embrace two or more noncompeting objectives: profit orientation: Definition: focus on target profit pricing, maximizing profits, or target return pricing. Target profit pricing: a pricing strategy used when they have a particular profit goal as their overriding concern, firms use price to stimulate a certain level of sales at a certain profit per unit. Maximizing profits strategy: relies primarily on economic theory. Mathematical model that captures all the factors required to explain and predict sales and profits. Identify the price which its profits are maximized. Target return pricing: firms less concerned with absolute level of profits and more interested in the rate at which their profits are generated relative to their investments: sales orientation: Firms believe that increasing sales will help the firm more than increasing profits.
