Price PDF

Price: Perspectives on Price: A measure of value for both buyers and sellers The amount of money charged for a product or service The sum of all values that consumers exchange for the benefits of having the product Often the sellers notion of value Sellers notion of value does not...

Price: Perspectives on Price: A measure of value for both buyers and sellers The amount of money charged for a product or service The sum of all values that consumers exchange for the benefits of having the product Often the sellers notion of value Sellers notion of value does not equal buyers Companies often focus on costs as a key to setting prices Key is what consumers are willing to pay for the benefit or values provided through use Creating vs. capturing value Product, promotion, place --> create marketplace value Price --> capture value via profits Overshoot the perceived value or the customers ability and/or willingness to pay What is a price? Price is the amount of money charged for a product or service, or the sum of the values consumers exchange for the benefits of having or using the product or service ○ Is the only element in the marketing mix that produces revenue; all other elements represent costs ○ Is one of the most flexible marketing mis elements ○ Is also the number-one problem facing many marketing executives ○ Has a direct impact on a firms bottom line 5 C's of Pricing: Company objectives Competition Costs