ENG ELC 220 Lecture Notes - Lecture 16: Cup-Bearer, Target Costing, Marketing Mix
Document Summary
Chapter 9 pricing: understanding and capturing customer value. Setting price based on buyers" perception of value rather than on the seller"s cost: marketer cannot design a product and marketing program and then set the price. Set target price to match customer perceived value. Design product to deliver desired value at target price. Assigning value to measures of satisfaction (taste, environment, relaxation, conversation, and status) is hard. Value is subjective; it varies for different consumers and situations. Offering just the right combination of quality and good service at a fair price. Introducing less-expensive versions of established brand name products: redesigning existing brands to offer more quality for a given price or the same quality for less, offering less value at very low prices. Everyday low pricing (edlp) charging a constant, everyday low price with few or no temporary price discounts. High-low pricing charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.
