Exam 3
Marketing 315 with Eskridge at Bradley University
About this deck
By: Michael Ryan
Created: 2012-03-24
Size: 35 flashcards
Views: 8
Created: 2012-03-24
Size: 35 flashcards
Views: 8
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Price
money or other considerations including other products and service exchanged for the ownership or use of a product or service.
Barter
exchange of goods and services w/o using money
Price Equation
Final Price = List Price - (Incentives + Allowances) + Extra Fees
Value
Value = Perceived Benefits/Price
Profit Equation
Profit = Total revenue(UP x QS) - Total cost(FC+VC)
4 Approaches to Pricing
Demand Oriented, Cost Oriented, Profit oriented, competition oriented.
Demand Oriented
Focuses on Customers' tastes and preferences
Cost Oriented
Focuses on cost + expenses, overhead and profit
Profit oriented
select a specific profit number
competition oriented
stress what market or competition is doing
Skimming
high initial price into the market
penetration
low initial price into the market
Prestige
Price = Quality
Target Pricing
Estimate price consumer is willing to pay, and work backwards
Bundle Pricing
Packae 2 or more products together
Yield Management
charge different price at different times
Standard Markup
every product class has specific % markup
Cost plus pricing
summing the total unit cost of providing a product or service and adding a specific amount to the cost
Price Constraints
factors that limit the range of prices a firm may set
Price Elasticity of Demand
= % change in Quantity Demanded/ % change of Price
Price Elasticity of Demand
Product substitutes, necessities, large cash outlays
Total Revenue
= Unit Price x Quantity Sold
Total Profit
= Total Revenue - Total Cost
Total Cost
= FC + VC
Break-Even Analysis
technique that analyzes the relationship b/t total revenue and total cost to determine profitability at various levels of output
Break-Even Point
= BEP Quantity - (Fixed Cost/ Unit Price - UNit Variable Cost) - (FC / P- UVC)
Pricing objectives
expectations that specify the role of price in an organization's marketing and strategic plans.
Middle Man
Any intermediary between manufacturer and end-user markets
Marketing Channel
consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
Functions performed by Intermediaries
Transactional, Logistical, Facilitating functions
Transactional function
buying, selling, risk: assuming business risks in the ownership of inventory that can become obsolete or deteriorate.
Logistical Function
Assorting, Storing, sorting, Transporting
Facilitating Function
Financing, Grading, Marketing Info and Research
Direct Channel
Producer-->Consumer
Indirect Channel
Producer--->wholesaler--->Consumer
About this deck
By: Michael Ryan
Created: 2012-03-24
Size: 35 flashcards
Views: 8
Created: 2012-03-24
Size: 35 flashcards
Views: 8
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have used this website for three exams, and I see a huge difference in my test results.”
Naj
Naj