Marketing Vocab from Kotler 11th edition's Chapter 10
Terms
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- Price
- The sum of values that consumers exchange for a product or service
- Dynamic Pricing
- Charging different prices according to different consumers and situations
- Target Costing
- Pricing that starts with an ideal selling price, then targets costs tat will ensure that the price is met.
- Fixed Costs
- Costs that do not vary with production/sales level
- Variable Costs
- Costs that vary with production/sales level
- Total Costs
- Variable Costs plus Fixed Costs
- Experience Curve (learning curve)
- drop in the average per unit production cost that comes with accumulated production experience
- Demand Curve
- A curve that shows the number of units the market will buy in a given time period at different prices that might be charged.
- Price Elasticity
- Measure of sensitivity of demand to price (%change in demand / %change in price)
- Cost-plus pricing
- Setting price with this formula: Price= costs + standard markup
- Break-Even Pricing
- Setting price with this formula: Break even volume = Fixed Costs/(Price-Variable Costs)
- Value Pricing
- Offering just the right combination of quality and good service at a fair price.
- Competition-based pricing
- setting prices based on the prices that competitors charge for similar products.