Chapter 19 : Pricing concept (19.6 : Other determinants of price …
Chapter 19 : Pricing concept
19.1 : The importance of Price to Marketing managers : To earn money the managers have to make the good choice beteen a price not too high or not too low.
19.2 : Pricing objectives
Profit-oriented (Goal : Profit maximization)
Sales oriented (Based on market share/dollar/unit)
19.3 : The demand determinant of price
How demand and supply established prices
Elasticity of demand : Formule : E = Percentage change in quantity demanded of good / Percentage change in price of good A
The nature of the demand : Quantity and price that will be sold. Supply is the quantity that a producer will offer to a market
19.4 : The power of dynamic pricing and yield management systems : This tool are used by the companies when competitive pressures is high. As strategy company can play on the price in order to increase the sells.
19.5 : The cost determinant of price
Profit Maximization Pricing : Whe can speak about this method when marginal revenu is equals to MC (marginal cost)
Break-even Pricing : It is the calcul of the quantity meximum that a company have to produce, after this figure the company start to lose money.
Markup pricing : Most popular method. the price is determined after taking into account production costs, additional costs and expected profit
19.6 : Other determinants of price
Demands of large customers
Impact of Internet/Extranets
Relationship of price to quality