MKTG 2201 Chapter Notes - Chapter 9: Price Skimming, Demand Curve, Monopolistic Competition

• School: Northeastern University
• Department: Marketing
• Course: MKTG 2201
• Professor: Thomas Lerra

Document Summary

Price: amount of money charged for a product or service, dete(cid:396)(cid:373)i(cid:374)es a fi(cid:396)(cid:373)"s (cid:373)a(cid:396)ket sha(cid:396)e a(cid:374)d p(cid:396)ofita(cid:271)ility, produces revenue. Cost-based pricing: based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk, types of cost, fixed costs(overhead, variable costs, total costs. Cost-plus pricing (markup pricing: adding a standard markup to the cost of the product. Break-even pricing (target return pricing: setting price to break even on the costs of making and marketing a product, or setting price to make a target return. Internal factors: overall marketing strategy, objectives, and mix, organizational considerations, external factors, market and demand, economy. Organizational considerations: management decides who should set prices, varies depending on the size and type of company, small companies- top management, large companies- divisional or product managers. Industries with price as the key factor- pricing departments.