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16 Cards in this Set

  • Front
  • Back

Pricing Constraint

Factors that limit the latitude of prices a firm may set

Pricing Objectives

Expectations that specify the role of price in an organization's marketing and strategic plans

Demand for the Product Class, product, and brand

The demand for each of the three category affecting the price a company can charge.

Luxury vs necessity. Urgency vs non urgent

Ex laptops to gaming to msi gs70 Alienware 13

Newness of the product: stage in the product life cycle

Newer a product and the earlier in its life cycle, the higher the price that can usually be charged.

Cycle = intro, growth, maturity, decline

Single product vs product line

Single product early in the product life cycle vs product line against many competitors and different price points

Cost of producing and marketing the product

Long run a firm must consider all costs in producing and marketing the product. If it doesn't cover costs then it will fail

Cost of changing prices and time period they apply

Setting prices regarding time frame and information available at that time. One can easily set prices on the go vs marketing strategy that makes it difficult to change prices such as printed catalogues.

Type of competitive markets

Prices are constrained to the type of market it competes in. Pure competition, monopolistic competition, oligopoly, pure monopoly. Aspects regarding price competition, product differentiation and advertising

Competitors prices

Know or anticipate present and future prices of competitors and potential competitors today and in the future.




Three different objectives which relate to profit. 1. Managing for long-run profits 2. Maximizing current profit objective (short term: quarter or annually) 3. Target return (a specification on ROI or ROA)


Hope that increase in sales will increase market share and profit. Can be easily managed for marketing managers over ROI

Market share

Firms pursue m.s. when industry sales are flat or declining

Unit volume

Quantity produced or sold. Matching capacity of the firms production to sales. Counter productive if increase in unit volume is due to price cutting which drives firms profitability


Throwing out the above to be viable in the long run

Social responsibility

Forgo higher profit and recognize obligation to customer and society in general. Medtronics heart pacemaker