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Marketing 19
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Price
that which is given up in an exchange to acquire a good or service
Importance of Price
1) to seller, price is revenue
2) to consumer, price is cost of something
3) price allocates resources in a free market economy
Profit Oriented:
-objectives include profit maximization, satisfactory profits, and target ROI
Profit Maximization- setting prices so that total revenue is as large as possible relative to total costs
Satisfactory Profits-reasonable profit levels
ROI- most common profit objective. sometimes called firms return on total assets
Sales-Oriented
based on Market share or Sales maximization
Market Share- company's product sales as a % of total sales for that industry
Status Quo Pricing
pricing objective that maintains existing prices or meets the competition's prices
Demand Determinant of Price: Demand
the quantity of a product that will be sold in the market at various prices for a specified period
Demand Determinant of Price: Supply
the quantity of a product that will be offered to the market by a supplier at various prices for a specific period.
Price Equilibrium
price at which demand and supply are equal
Elasticity of Demand
Consumers' responsiveness or sensitivity to changes in price
Cost Determinant of Price: Markup Pricing
the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
Cost Determinant of Price: Keystoning
the practice of marking up prices by 100%, or doubling the cost
Author
Anonymous
ID
151472
Card Set
Marketing 19
Description
Marketing 19
Updated
5/1/2012, 8:01:44 PM
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