MARK 3000 Lecture Notes - Lecture 3: Federal Communications Commission, State Farm Insurance, Federal Trade Commission
22 Aug 2016
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Price: the overall sacrifice a consumer is willing to make to acquire a specific product or service. The 5 c"s of pricing used to set price: company, customers, costs, competition, channel members. Profit orientation reach a target level (often a set percentage) Sales orientation max sales volume, even if it cuts into profits. Costs: variable costs, vary in total with production volume, remain same per unit. Fixed costs: unaffected by production volume, total cost. Sum of variable and fixed costs: break even analysis used to set must have price (or minimum quantity that must be sold) In most cases, adjustments made upward of break even: amount added above break even price = profit. Demand-the quantity of a product that will be sold in the market at various prices for a specified period. Elasticity of demand- consumers" responsiveness or sensitivity to changes in price.
