HTM 302 Study Guide - Final Guide: Starwood, Sheraton Hotels And Resorts, Market Segmentation

• School: Ryerson University
• Department: Hospitality and Tourism Management
• Course: HTM 302
• Professor: Rachel Dodds

Document Summary

**the marketing mix that produces revenue is price. External: ie. , gas, competition, economy, government, resellers, etc: profit-orientated pricing: driving down costs and increasing revenue ie. , spirit airlines . Internal: ie. , staff, labor costs, marketing objectives, product life cycle, etc. Ignores profits, competition: sales-orientated pricing: selling more to get more market shares. May be used to sell off excess inventory: status-quo pricing: pricing according to the current market price. Since they cannot attract customers with price, they have to attract them otherwise (have another competitive advantage or differentiation) Elasticity of demand - consumer"s responsiveness or sensitivity to changes in price. Inelastic pricing - an increase or decrease in price will not significantly affect demand ie. , Insulin, regardless of price diabetics will always need insulin and will continue to buy insulin. Unitary pricing - an increase in sales exactly offsets a decrease in prices, and revenue is unchanged.