COMMERCE 2MA3 Chapter Notes - Chapter 11: Marketing Mix, Marketing, Oligopoly
7 Nov 2016
School
Department
Course
Professor
Document Summary
Chapter 11: pricing concepts and strategies: establishing value. Not an after thought to the rest of the marketing mix. Pricing signals quality or lack of quality. Price is usually ranked as one of the most important factors in purchase decisions. Price is the only element in the marketing mix that generates revenue. Think of a purchase where price doesn"t matter. The key to successful pricing is to match the product or service with the value perceptions. Sales orientation: a company objective based on the belief that increasing sales will help the firm more than will increasing profits: price aggressively to obtain market share. Its all about understanding consumers reactions to different prices: companies price at x99, cause we read left to right and we recognize mostly the first number, priced higher but feel its less. Price is half of the value equation.
