MKT 340 1st Edition Lecture 19Outline of Last Lecture I. Example: StarbucksII. 68% of people learn about products through TV, 10% social mediaIII. Brand extensions and line extensions occur in the maturity stageIV. SubaruOutline of Current Lecture I. Considerations in PriceII. Pricing MethodsIII. Types of CostIV. Break even chartCurrent LectureV. Considerations in Pricea. Product cost, competition & external factors, consumer perception of valueVI. Pricing Methodsa. Consumer Value-based pricing Uses buyers perceptions to price productsb. Cost plus based pricing: set the price based on product cost, convince buyers on cost, does not work with convenience products, easier method than consumer value based pricingc. Competition based: pricing based on competitors position and priceVII. Types of Costa. Fixed: sunk cost, large, all the timeb. Variable: based on how many products you produceThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.c. Carrying cost: cost to keep overstockVIII. Break even charta. Breakeven usually before maturity stageb. Break even volume: fixed cost/(price-variable cost)c. Determines pricing
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