SMG MK 323 Lecture Notes - Lecture 14: Predatory Pricing, Blu-Ray, Price Fixing

• School: Boston University
• Department: Marketing
• Course: SMG MK 323
• Professor: Lorri Veidenheimer

Document Summary

Mk note 14- margins, markups, and pricing strategy. Profit-oriented: target profit pricing: have a particular profit per unit goal, maximizing profits: use mathematical model to come up with the maximum profit, target returning pricing: maximize the return of investment percentage. Sales-oriented: tr(cid:455) to (cid:373)a(cid:454)i(cid:373)ize the sales (cid:271)(cid:455) lo(cid:449)eri(cid:374)g (cid:373)e(cid:373)(cid:271)ership fee, a(cid:272)(cid:272)ept less profit at first . Try to set entering barrier to new comers by lowering the price: premium pricing: also a subgroup of sales-oriented. Instead of lowering the price, it tries to set premium price (fair price) for better qualitied product. 1. competitive parity: company set prices that are similar to those of their major competitors: status quo pricing: changes prices only to meet those of the competition. Customer-oriented: customer orientation: is when a firm sets its pricing strategy based on how it can add value to its products or services. Prestige products or services: prestige product/ services: consumers purchase for their status rather than their functionality.