Mar-3023 Lecture Notes - Lecture 19: Demand Curve, Grocery Store, Rolex
Document Summary
Price: the value paid for a product in a marketing exchange. Money can come in the form of: tuition, premium, fine, fee. Pricing concepts: fare, toll, rent, tips, deposit, dues, taxes. Price competition: emphasizing price as an issue and matching or beating competitor"s prices: you have to think about what price you want to charge relative to your competitors. Non-price competition: emphasizing factors other than price to distinguish a product from competing brands: things other than price that distinguish products from competitors. Ex: guarantee, warranty, added value allow you to charge higher price. Price is related to total revenue and profit: profit = total revenue total costs, profit = (price x quantity sold) total costs. Price is a good way to control demand: as you raise price, quantity demanded decreases and vice versa, you have to be aware of the capacity you can serve.
