MKT 100 Lecture Notes - Lecture 10: Tickets.Com, Trivago, Marketing Week

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: All

Document Summary

We are now looking at price in the marketing mix. Prices can be both too high and too low. Price set too high might signal low value (value: what you get for what you give) Price is usually ranked as one of the most important factors in purchase decisions. Price is the only element in the marketing mix that generates revenue. Achieve the financial goals of the company (profitability) Be consistent with other variables of the marketing mix. This refers to how sensitive the demand for a good is in regards to price changes. Inelastic demand means that demand is not price sensitive. Elastic demand means that demand is price sensitive. When competitors feature price in advertising: this happens often in grocery or electronics. When new seller enters the market at a low price: think new phone company offering amazing deal for unlimited talk and text.