Segment 17 Pricing
Strategy: Chapters 13 &
14 Complete Study Guide
|Guaranteed success|
, Terms in this set (77)
price (P) money or other considerations exchanged for the ownership or use of a
product or service
barter exchange of product or service for product or service
price equation list price - incentives and allowances + extra fees
value ratio of perceived benefits to price
value pricing the practice of simultaneously increasing product and service benefits while
maintaining or decreasing price
profit equation Total revenue - Total cost or [(Unit price x Quantity sold) - (fixed cost + variable
cost)]
pricing objectives specifying the role of price in an organization's marketing and strategic plans
managing for long-run profits objective give up immediate profit by developing quality products to penetrate
competitive markets over the long term
maximizing current profit objective targets can be set and performance measured quickly
target return objective firm sets a profit goal (such as 20 percent for pretax ROI), usually determined
by its board of directors
market share ratio of the firm's sales revenues or unit sales to those of the industry
market share objective pursued when industry sales are relatively flat or declining
unit volume the quantity produced or sold
pricing constraints factors that limit the range of prices a firm may set
Strategy: Chapters 13 &
14 Complete Study Guide
|Guaranteed success|
, Terms in this set (77)
price (P) money or other considerations exchanged for the ownership or use of a
product or service
barter exchange of product or service for product or service
price equation list price - incentives and allowances + extra fees
value ratio of perceived benefits to price
value pricing the practice of simultaneously increasing product and service benefits while
maintaining or decreasing price
profit equation Total revenue - Total cost or [(Unit price x Quantity sold) - (fixed cost + variable
cost)]
pricing objectives specifying the role of price in an organization's marketing and strategic plans
managing for long-run profits objective give up immediate profit by developing quality products to penetrate
competitive markets over the long term
maximizing current profit objective targets can be set and performance measured quickly
target return objective firm sets a profit goal (such as 20 percent for pretax ROI), usually determined
by its board of directors
market share ratio of the firm's sales revenues or unit sales to those of the industry
market share objective pursued when industry sales are relatively flat or declining
unit volume the quantity produced or sold
pricing constraints factors that limit the range of prices a firm may set
