BU362 Chapter 11: Chapter 11 Marketing
Document Summary
Chapter 11: pricing components and strategies: establishing value. Value reflects the relationship between benefits and costs. It is not only a sacrifice, but also an information que as well rest of the marketing mix. Profit orientation: focus on target profit pricing, maximizing profits, or target return pricing, target profit pricing: particular profit goal and use price to stimulate a certain level of sales, maximizing profits strategy: relies on economic theory. In order for sales to increase, consumers must see greater value. Competitor orientation: measure themselves against their competition, competitive parity: set prices that are similar to those of their major competitors, copying a competitor"s price might provide value if they are using value in their strategy. Customer orientation: explicitly evokes the concept of value, no haggle = making purchase process easier by lowering the overall price and ultimately increasing value. Customers: understand the consumers reaction to different prices, economic theory can help explain how prices are related to demand.
