Marketing ch13 &14

Price

is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Price vs value

is what a consumer pays, is what a
consumer receives

Objectives

• Profit

• Sales Revenue

• Market Share

• Unit volume

• Survival

• Social responsibility

Constraints

• Demand for product

• Newness of the product

• Cost of producing and marketing

• Single product versus product line

• Competition

Demand Curve

a graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price.

Demand factors

factors that determine consumers’ willingness and ability to pay for products and services.

Price elasticity of demand

measures the percentage change in quantity demanded relative to a percentage change in price.​

Total Cost

The total expense incurred by a firm in producing and marketing a product.

Fixed cost

The sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.

Variable cost

The sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.

Discounts

are reductions from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller.

Allowence

are reductions from list or quoted prices to buyers for performing some activity.

Geographical Adjustments

are made by manufacturers or even wholesalers to list or quoted prices to reflect the cost of transportation of the products from seller to buyer.