Summary
MNM2609 Price Management Full Summary Ch1-10
- Course
- Institution
- Book
Lecture notes, study guide and textbook all comprised into one group of notes. Chapter 1-10.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
7 reviews
By: keyurlalaram05 • 5 year ago
By: arnolduslaubscher • 6 year ago
By: teagansmith • 6 year ago
By: andre7 • 6 year ago
By: markusbodenstein • 6 year ago
By: moiradebruin • 7 year ago
By: kyledorfling • 7 year ago
Seller
FollowDubst3ph
Reviews received
Content preview
2609 Price Management-2016 Exam Preparation Notes and Summary. By: Dubst3phs
TOPIC 1: The importance of price.
Study Unit 1: The nature and role of price in the organization.
Price is defined as the value of a product/service expressed in terms of Rand and cents. The amount of money needed to
obtain products and the benefits that go with it.
Price Meaning is the exchange value of a product or service and is directly linked to benefits.
TWO roles played by price to consumers and organizations:
1. Price as a measure of sacrifice- consumers have to give something up in order to obtain the product.
2. Price a an information cue- consumers believe a low price means low quality.
For organizations= price is the amount of money they will charge for the product
For Consumers= price is an indication of quality.
PRICE AKA’s
• Price isn’t always money, can be an exchange of value
• Price is the most flexible of the marketing mix.
Setting the right price:
1. Who is the primary market?
2. What is the market position of the organization- monopoly, start up?
3. What are the perceptions of customers about competing brands/products/services?
4. What are the total costs involed to deliver the product to the market?
5. What are the sales and profit projections of the organizations?
Recap: 4 P’s of marketing
Price, Product, place and Promotion.
COMMON PRICING MISTAKES
• Pricing decisions that are too cost-oriented
• Pricing decisions that does not the rest of the marketing mix into consideration
• Pricing decisions that is not revised as market conditions change
• Pricing decisions that is not varied enough for different products and market segments
• Pricing decisions that are set from a defensive positions instead of a offensive position
IMPORTANCE OF PRICE IN THE ECONOMY
Economic environment effects our price on day to day good.
Rand falls in value the cost of imports is higher.
THE IMPORATANCE OF PRICE IN THE ORGANISATION
TWO broad categories of price of price
• Price takers/price followers :
o Companies that set prices in unity with other players within the market – no influence on market prices.
• Price makers /price leaders :
o Set prices for the market to follow.
• Non-price competition :
o Companies use differentiation, can be more important to consumers than price
o Develop brand, create demand & loyalty
o Proper differentiation makes it difficult to make direct comparisons to similar products or services
Price x Unit= Revenue Revenue-Expenses= Profit
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Dubst3ph. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.22. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75619 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now