Chaper 19 : Pricing concept (19.1 : Importance of pricing decisions to…
Chaper 19 : Pricing concept
19.1 : Importance of pricing decisions to the economy and to the individual firm
19.2 : Pricing objectives
Profit-oriented (Goal : Profit maximization)
Sales oriented (Based on market share/dollar/unit)
19.3 : The demand determinant of price
The nature of demand
How demand and supply established prices
Elasticity of demand
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.
19.4 : 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.
"To the consumer is the cost of something, To the seller, price is revenue"
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)
Markup pricing : Most popular method. the price is determined after taking into account production costs, additional costs and expected profit
Impact of Internet/Extranets
Demands of large customers
Relationship of price to quality