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Chapter 10 - Coggle Diagram
Chapter 10
The Market and Demand
Monopolistic competition
Oligopolistic competition
Pure competition
Pure monopoly
Company and Product Costs
Variable costs. Ex: Packaging, Raw materials
Total costs = Fixed costs + Variables cost
Fixed costs. Ex : Rent, Utilities, Interest,...
Price Elasticity of Demand
Inelastic demand: occurs when demand hardly + small change in price.
Elastic demand: demand changes + small change in price.
Price elasticity of demand: illustrates the response + demand in price
What Is Price?
Price is the only element in the marketing mix that produces revenue; all other elements represent costs.
Price is the amount of money charged for a product or service.
Customer Perception of Value
Cost-based pricing is product-driven.
Value-based pricing is customer-driven.
Break-Even Analysis and Target Profit Pricing
Target profit pricing: the price + break even + make the profit
Break-even pricing: total costs = to total revenue+ profit.
Other Internal and External Considerations Affecting Price Decisions
External factors. Ex ; Competitors’ strategies and prices, Other environmental factors
Internal factors. Ex: Marketing strategy, objectives, and marketing mix