MARK 300 Lecture Notes - Lecture 9: Price Ceiling, Root Mean Square
Document Summary
Strategic marketing > strategic planning > strategies and tactics. Price: amount of money charged for a product or service, determine"s rms marketshare and pro tability, produces revenue. Customer value based pricing: based on buyers" perceptions of value rather than on seller"s cost, price is considered before marketing program set, types of value based pricing: Good value- lower price, higher sale volume. Value added- higher price for better value: value based vs cost based pricing. Cost based: design good product > determine product costs > set price based on cost. Value based: assess customer needs and value perceptions > set target price to match customer perceived value > determine costs that can be incurred > design product to deliver desired value at target price. Cost based pricing: based on costs of producing, distributing and selling product plus a fair rate of return for e ort and risk, types of costs: Total costs: types of cost based pricing.
