MKTG-300 Chapter Notes - Chapter 13: Demand Curve, Value-Based Pricing, Fixed Cost
21 Aug 2018
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Price: is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service. Barter: the practice of exchanging products and services for other products and services rather than for money. Value: ratio of perceived benefits to price, or value = perceived benefits / price. Value pricing: the practice of simultaneously increasing product and service benefits while maintaining or decreasing price. Profit equation: profit = total revenue - total cost = (unit price x quantity sold) - (fixed cost + variable cost) Pricing objectives: involve specifying the role of price in an organization"s marketing and strategic plans. Demand for the product class, product, and brand. Newness of the product: stage in the product life cycle. Cost of producing and marketing the product. Cost of changing prices and time period they apply. Competitors prices and consumers awareness of them. Movement along versus shift of a demand curve.
