MKT 101 Chapter Notes - Chapter 9: Fixed Cost, Marketing Mix, Dynamic Pricing
21 Jan 2019
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Price: the amount charged for a product or service, or sum of the values that customers exchange for the benefits of having or using the product/service. Only element that produces revenue and is the most flexible marketing mix element. Customer value-based pricing: setting price based on buyers" perceptions of value rather than on the seller"s cost. Involves understanding how much value customers place on benefits they receive from product and setting price that captures value. Good-value pricing: offering just the right combination of quality and good service at a fair price. Value-added pricing: attaching value-added features and services to differentiate a company"s offers and charging higher prices. Cost-based pricing: setting prices based on the costs of producing, distributing and selling the product plus a fair rate of return for effort and risk. Competition-based pricing: setting prices based on competitors" strategies, prices, costs and market offerings. If consumers perceive greater value than competitors than company can charge a higher price.
