COMMERCE 2MA3 Lecture Notes - Lecture 11: Profit Margin, Liquid Oxygen, Price Skimming
26 Feb 2019
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Lo1: explain what price is and its importance in establishing value in marketing. Lo2: illustrate how the 5c"s influence pricing decisions. Lo3: understand the considerations for setting prices, the three pricing methods, and various strategies used in marketing. Lo4: identify pricing tactics targeted at channel members and consumers. Lo5: summarize the legal and ethical issues involved in pricing. Price is not only the monetary value of a product. It also includes the nonmonetary sacrifices that consumers make to acquire the product like the value of their time and effort to buy the product. Therefore a product"s price is the overall sacrifice a consumer is willing to make to acquire the product or service. Price is the only p that generates revenue. Price is an integral part of a products value. Price can be perceived as an indication of product quality. Sales = no. of units sold * selling price.
