MGT 103 Lecture Notes - Lecture 10: Sales Operations, Whiteboard, Models 1

• School: UCSD
• Department: Rady School of Management
• Course: MGT 103
• Professor: Craig Eberhard

Document Summary

Pricing : regardless of the product involved, the price of a product or service must cover the costs of the product/service as well as earn a reasonable profit. When proposing a new product, tim cook would want to know . Number of units (how many will be sold/yr) What is our sales forecast (years 1-3) Value : ratio of perceived benefits to price. Pricing: 3 models: target cost pricing. Products that are not too easily differentiated. Many competitors, but you are not the first to market. In order to make a profit, you must make your product fit into the set pricing. Not what we are doing on the project! In order to maintain market leadership and healthy profit margins, you must innovate and uphold premium brand image. Due to variability and time and material. Examples: services such as accounting, law, engineering. Value-pricing: increasing product benefits while maintaining or decreasing the price.