MKT103

• Commercial exchange


  Where a seller provides a product to a buyer in return for something in exchange (usually an amount of money). Both the buyer and seller participate in the exchange voluntarily because the exchange will lead them both to be better off.
• The product could be something tangible, which is referred to as a good, or the product could be the result of human or mechanical effort, which is referred to as a service.
• Buyer


  Could be a consumer- an individual who purchases a product for his or her own use or a business customer- an individual or group who purchases the product in order to resell it or for other business purposes.
• Every person engages in numerous commercial exchanges everyday day. Each little increase in pleasure that a commercial exchange brings is then multiplied many times, and the societal benefits can become considerable.
• Price


  Given in return for a product in a commercial exchange. If the product is a good, then the product's price will be most likely be called "price." However, if the product is a service, then the product's price may well go by one of the other possible names.
• Price vs Cost


  From the buyer's viewpoint, price and cost are synonymous. From the seller's viewpoint, price is what the business charges and cost is what the business pays.
• Four elements of the marketing mix

  • Product
  • Distribution
  • Promotion
  • Pricing

  
• Value


  The benefits, or the satisfactions of needs and wants, that a product provides to customers.
• Price is the marketing-mix element that produces revenue; the others produce costs.

  
• Marketing concept


  The key to business success is to focus on satisfying customer needs.
• The marketing concept is a modern form of the philosophical viewpoint known as "enlightened self-interest": One's self-interest is the best served by focusing one's attention on the needs of others.
• Pricing considerations guided by the marketing concept

  • Feeling of a price being substantially higher than the customer's expectations
  • Feeling that a price is unfair or is higher than can be justified
  • Customers perceiving they are receiving a discount, or a price lower than their expectations
• The oldest records of prices ever found are clay tablets with pictographic symbols found in a town known as Uruk, in what was ancient Sumer and what is now southern Iraq. These rice records are from 3300 BC- they've survived 5,300 years.
• Barter


  Goods and services were exchanged for other goods or services.
• Medium of exchange


  Something that is widely accepted in exchange for goods and services in a market.
• Three categories of pricing issues

  • Buyer-Seller Interactivity
  • Price Structure
  • Price Format
• Interactive price


  A price arrived at by the buyer-seller interactions of negotiation or the interactions of auction bidding.
• Fixed price


  The price that the customers actually expected to receive and sticking to it.
• Price segmentation


  The practice of charging different customers different prices for the same item.
• Price format


  The form of expression of a price.
• Price partitioning


  The question of whether a price should be expressed as a single number or as the sum of more than one number.