MKT 100 Chapter Notes - Chapter 11: Price Ceiling, Geographical Pricing, Price Skimming
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MKT 100 Full Course Notes
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Chapter 11 price concepts and strategies: establishing value. Marketers should view pricing decisions as a strategic opportunity to create value rather than as an after thought to the rest of the marketing mix. Price communicates more than how much a product or service costs it can signal quality. 5 critical components of pricing: company objectives. Each rm embraces an objective that ts with where management thinks the rm needs to go to be successful. These objectives usually re ect how the rm intends to grow. Firms implement a project orientation by focusing on target pro t pricing, maximizing pro ts, or target return pricing. Firms using a sales orientation to set prices believe that increasing sales will help the rm more than increasing pro ts. When rms undertake a competitor orientation they strategize according to the premise that they should measure themselves primarily against their competition.
