Pricing and Distribution

The amount of money expected, required or given in payment for something expended or endured in order to achieve an objective the odds in betting archaic value; worth. The assignment of value used to express the rate of exchange

The function of sales and price point (price charged to customers multiplied by the number of units sold)

Difference between revenues and the cost of doing business

Represent the total amount of money, time or resources required to produce an offering

Do not vary according to the number of units of goods made or services sold and are independent of sales volume

Depend on the number of units of goods made or services sold

How demand shifts with changes in price

Price change causes great change in demand

Price change leads to little change in demand

Change in demand is proportionate to the change in price

A xhange in price has no impact on quantity sold

Changes in quantity sold have no impact on price

The organsiation's strategic view of pricing in its marketing strategy as well as the methods used to reach pricing decisiomsd that support a competitve advantage

A cost-based orientation (A product-centric approach)

Prices set based on price sensitivity and demand

Prices set based on the competitor prices

Prices set based on customer perceptionds of value (A customer-centric approach)

Cost base is calculated then a mark-up is applied

Determines the price that would produce the target rate of return given unit costs, capital investments and forecasted sales volume

Determines the price at which total costs would be recovered at the forecasted sale volume

Companies set their prices based on the prices of their competitors, the so-called 'going rate' and relies upon competitve benchmarking

Occur when competitors pricing policies are overly focused on competitors, rater than customers, when prices push downwards and when pricing results in interactions between competitors that can lead to unsustainable prices

Leverages the customer perception of value as a sum of both the benefits and costs of the product

Focusing on pricing and offerirng to indicate its distinctiveness in the marketplace

Setting the oprioce low relatve to the competition to gain market share

Setting the prices at the bare minimum to attract price senstive customers

When the price is initially set high and then lowered in sequential steps

Automated decision-making and price adjustments using machine learning and AI

Captures the relationship between a firm's price managemnt capabilities and price effectiveness

The standard of something as measured against other things of a similar kind general excellence archaic social standard

The customer's evaluation of the difference between all the benefits and all the costs of a market relative to those of competing offers

The maximum amount a customer is willing to pay for your product or service

Prices the buyer has knowledge of and users as a point of comparison in evaluating the price of the product under consideration

Prices held in memory or perceived by the buyer

Supplied by other sources includig the marketer or store setting

The availability of price information

The specific avenue a seller uses to make a finished good or service available to you for purchase

The channel of distribution is the path an organisation's product takes including any neccesary activities such as transforming and transporting inputs and the organisations involved to reach the target market