MKT 100 Chapter Notes - Chapter 11: Blu-Ray, Marketing, Demand Curve

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Tatiana A

Document Summary

Chapter 11 pricing concepts and strategies: establishing value. Coming up with the right price is never easy, as the opening example shows. Price is the most challenging of the four ps to manage, partly because it is often the least understood. Marketers should view pricing decisions as a strategic opportunity to create value rather than as an afterthought to the rest of the marketing mix. Price communicates more than how much a product or service costs; it can signal quality, or lack thereof. Successful pricing strategies are built through the five critical components: company objectives, customers, costs, competition, and channel members. Company objectives different firms embrace different goals: walmart, for example, wants to be seen as a value-based company and so uses everyday low pricing (edlp), whereas holt renfrew"s high prices reflect its high-fashion image. Each firm embraces an objective that fits with where management thinks the firm needs to go to be successful, in whatever way they define success.