marketing managment

1. Pricing Decisions EMBA 5411 Budgeting and Pricing

4. /30 Quantity made and sold per month Determining the Profit-Maximizing Price and Quantity Dollars per unit Demand Marginal revenue q* p* Marginal cost Profit is maximized where marginal cost equals marginal revenue, resulting in price p* and quantity q*.

5. Determining the Profit-Maximizing Price and Quantity /30 Total revenue Dollars Total cost Total profit at the profit-maximizing quantity and price, q* and p*. Quantity made and sold per month q*

6. Price Elasticity /30 The impact of price changes on sales volume Demand is elastic if a price increase has a large negative impact on sales volume. Demand is inelastic if a price increase has little or no impact on sales volume.

10. Product Life Cycle /30 http://www.hss.caltech.edu/~mcafee/Classes/BEM106/PDF/ProductLifeCycle.pdf

12. /30

19. Cost Plus Pricing Versions /30

20. Cost Plus Pricing Versions /30

22. Example /30

24. Example con’t /30