MGTA02H3 Chapter 7: chapter 7 notes
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MGTA02H3 Full Course Notes
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Chapter 7 pricing and distributing goods and services notes. N in the long run, a business must make a profit to survive; nevertheless, many companies initially set low prices for new products. N they are willing to accept minimal profits even losses to get buyers to try products. N market share a company"s percentage of the total market sales for a specific product. N whatever a company"s objectives, managers must measure the potential impact before deciding on final prices. N mark-up percentage is calculated as follows: mark-up / sales price. Profit = total revenue (total fixed costs + total variable costs) N distribution mix the combination of distribution channels a firm selects to get a product to end-users intermediaries any individual or firm other than the producer who participates in a product"s distribution. N wholesalers intermediaries who sell products to other businesses, which in turn resell them to the end-users.
