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16 Cards in this Set
- Front
- Back
Pricing Constraint |
Factors that limit the latitude of prices a firm may set |
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Pricing Objectives |
Expectations that specify the role of price in an organization's marketing and strategic plans |
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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 |
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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 |
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Single product vs product line |
Single product early in the product life cycle vs product line against many competitors and different price points |
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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 |
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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. |
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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 |
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Competitors prices |
Know or anticipate present and future prices of competitors and potential competitors today and in the future. |
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Break |
Break |
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Profit |
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) |
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Sales |
Hope that increase in sales will increase market share and profit. Can be easily managed for marketing managers over ROI |
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Market share |
Firms pursue m.s. when industry sales are flat or declining |
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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 |
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Survival |
Throwing out the above to be viable in the long run |
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Social responsibility |
Forgo higher profit and recognize obligation to customer and society in general. Medtronics heart pacemaker |