An individual report submitted to Dr. Ramon Garcia as a fulfillment for the requirements in BA 508 (Marketing Management).

1. MARKET AND PRICING
Reported by: MariaTheresa A.Velasco
Master in Business Administration

2. Market is an actual or nominal place where forces
of demand and supply operate, and where buyers and
sellers interact (directly or through intermediaries) to
trade goods, services, or contracts or instruments, for
money or barter.

3. Competitive Market
A competitive market is one in which a large
numbers of producers compete with each other to satisfy
the wants and needs of a large number of consumers. In a
competitive market no single producer, or group of
producers, and no single consumer, or group of consumers,
can dictate how the market operates. Nor can they
individually determine the price of goods and services, and
how much will be exchanged.

4. Market Structure
There are 4 basic market models: pure
competition, monopolistic competition, oligopoly, and
pure monopoly. Because the competition among the
last 3 categories is limited, these market models are
often referred to as imperfect competition.

5. Market Structure
Characteristics
 Number of firms
 Type of product
 Ease of entry
 Market power/Price control

6. Perfect or Pure Competition
 Large number of firms
 Homogenous product
 Easy entry/exit
 No market power (price
taker)
 Perfect information
 Examples (Agriculture-
wheat, corn)

7. Monopolistic competition
 A large number of firms
 Similar but differentiated
products
 Low barriers to entry
 Market power (limited)
 Examples (restaurants,
hotels)

8. Oligopoly
 A few large firms
 Standardized or
differentiated products
 Significant barriers to entry
 Market power
(interdependent)
 Examples (Steel, oil,
automobiles)

9. Pure monopoly
 One firm
 Unique product
 Blocked entry
 Market power (price maker)
 Examples (local utilities)

10. Pricing
Pricing is one of the most important elements of the
marketing mix, as it is the only mix, which generates a
turnover for the organization. The remaining 3p’s are the
variable cost for the organization. It costs to produce and
design a product, it costs to distribute a product and costs
to promote it. Price must support these elements of the
mix. Pricing is difficult and must reflect supply and
demand relationship.

11. Pricing factors
 Fixed and variable costs.
 Competition
 Company objectives
 Proposed positioning
strategies.
 Target group and willingness
to pay

12. Pricing strategies
 Bundle Pricing
 Competition Pricing
 Cost Based Pricing
 Cost Plus Pricing
 Optional Pricing
 Penetration Pricing
 Premium Pricing
 Product Line Pricing
 Psychological Pricing
 Skimming Pricing