The key goal of Survival Math for Marketers is a solution to a common problem in business - namely, the lack of mathematics know-how among many business students and practitioners. There is an untapped ‘latent demand’ in the marketing world from many people whose careers have been - or will be - thwarted because the math ‘haves’ dominate the ‘have nots’. This book as an easy, fun, and inexpensive solution to this age-old problem.
Survival Math for Marketers is designed to be a useful book for introductory marketing courses. It is clearly written, filled with good examples, illustrations and makes entertaining reading.
Chapter Six: Pricing and Profitability
Pricing and Profitability
Pricing: Theory and Practice
So, how much will you charge for your product? We're covering that subject here because it is so closely related to profitability and to the real power of the customer-oriented marketing concept.
We can start with the economic concept of substitutability that we just covered. The key to pricing (and, for that matter, a significant key to understanding marketing) is figuring out what makes a demand curve elastic or inelastic for your product and your target market; that perceived substitutability affects the price.
But there is much mumbo jumbo on pricing. The most pervasive pricing problem faced by every marketing manager in every organization is this: You will get more help than you need, from everyone around you. Everyone ...