BUS 448 Lecture Notes - Lecture 7: Cash Flow, Competitive Intelligence, Order Of Newfoundland And Labrador

• School: Stony Brook University
• Department: Business Management
• Course: BUS 448
• Professor: Camille Abbruscato

Document Summary

Pricing strategy key factor i producing revenue for firm. Easiest of all marketing variables to change: changing prices is a very low-cost option. Important consideration in competitive intelligence: try to discover and anticipate pricing strategies of other firms. Considered onl real means of differentiation in highly commoditized markets: when customers see all competing products as offering same features and benefits, their buying decisions are primarily driven by price. Costs in producing and marketing important for setting prices: must be factored out of revenue equation to determine profits. Setting specific pricing objectives that are realistic, measurable, and attainable is important part of pricing strategy. Price competition can"t charge higher price for no good reason. Benefits: everything consumer obtains from offering. Costs: everything customer must give up. Value tied to every element in marketing program. Price set to max profit - price whatever top limit arket will bear making return on investment.