BUS-A 201 Chapter Notes - Chapter 7: Sales Promotion, Marketing Mix, Institute For Operations Research And The Management Sciences
Document Summary
Pricing - process of determining what a company will receive in exchange for its products. Pricing objectives - the goals that sellers hope to achieve in pricing products for sale. Market share (market penetration) - a company"s percentage of the total industry sales for a specific product type. Cost-oriented pricing - pricing that considers the firm"s desire to make a profit and its need to cover production costs. Markup - amount added to an item"s purchase cost to sell it at a profit. Variable cost - cost that changes with the quantity of a product produced and sold. Fixed cost - cost that is incurred regardless of the quantity of a product produced and sold. Breakeven analysis - for a particular selling price, assessment of a seller"s costs versus revenues at a various sales volumes. Breakeven point - the sales volume at which the seller"s total revenue from sales equals total costs (variable and fixed) with neither profit nor loss.
