3/26 Class Flashcards
vertical marketing
where someone owns all of the supply chain
horizontal
where each section is owned by someone different
disintermediation
when one chain disrupts another
four p’s
product-creating value
place-delivering value
price-capturing value
promotion-communicating value
price
to the seller: revenue
consumer: cost
pricing and break even unit sales
variable cost .9
fixed costs: 45000
sales price 1.35
fixed cost/(unit sp-unit vc)
keystoning
pricing model in certain chains, setting a price by taking a cost and doubling that
cost/profit vs perceived value
cost based - product, cost, price, value, customers
value based - customer, value, price, ….
price=quality
customers think
cost plus pricing
?
target profit pricing
?
response to competition
reduce price
improve quality, raise price
launch low end fighter brand
on the final exam
look at slide
marketing objectives
introduction: educate consumers, gaining awareness
growth: stress differentiation
maturity: maintain brand loyalty
decline: harvesting or deletion
skimming
entering at a very high price to get certain consumers
then you drop to let others in and continue that trend
Hi low
set prices high then give sales