About This Chapter
AMA PCM Exam: Pricing Concepts & Methods - Chapter Summary
If you are planning on sitting for the AMA PCM Exam, you might want to study up on the subject of pricing concepts and methods. To this end, you can look over the lessons contained in this chapter for information that you might be tested on during the exam. Each lesson will go over a specific point that you should read up on, such as:
- Deciding on a pricing strategy
- Price elasticity
- Pricing cost
- The definition, types and examples of price strategy in marketing
- Consumer perception
- Economic factors
- Developing a market demand schedule
- Legal and ethical issues in pricing
The video lessons will provide you with a comprehensive overview of each of these topics. You can also go through the chapter's practice quizzes to get a good idea of the kinds of questions that you'll have to answer on the exam itself.
1. Pricing Objectives: How Firms Decide on a Pricing Strategy
After watching this video, you should understand pricing strategy as it relates to the marketing mix. The three types of pricing strategies are profit-maximization, sales-oriented and status quo.
2. Price Elasticity: Understanding Supply and Demand
Marketing managers need to understand the basics of supply and demand in order to develop the precise price for their product. Inelastic and elastic demand explains how sensitive consumers are to price and how much flexibility it allows the marketing team.
3. Pricing Cost: What Motivates Mark-up and Break-Even Pricing
The marketing mix consists of the four Ps (product, place, promotion and price). The marketing manager has to decide what type of pricing strategy to use for the overall marketing plan. The options depend on how cost is determined.
4. Pricing Strategy in Marketing: Definition, Types & Examples
Companies utilize a variety of pricing strategies to market their products to consumers. Throughout this lesson, we will explore some of these strategies and test your knowledge with a short quiz.
5. Pricing Strategy and Consumer Perception
Consumers' perceptions of products rely heavily on the pricing strategy that is chosen by the marketing manager. Price will impact not only consumer perception but also profit and speed of product adoption.
6. Economic Factors of Pricing and Pricing Strategy
Economic factors can alter companies' pricing strategies. Prices need to be flexible, especially in response to inflation and recessions. There are numerous strategies that can be employed to combat economic changes and lead to corporate sales and profits.
7. Market Demand Schedule
Demand can often drive the cost up or down for a product or service. In this lesson, you'll discover what demand is, what it looks like, and how market demand schedules are created.
8. Pricing: Legal & Ethical Issues
Pricing strategies for companies are constantly questioned, but are they legal or ethical? Usually, there are two sides to each strategy, the ethical, and unethical; however, unethical does not always mean illegal.
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Other chapters within the AMA PCM Exam Study Guide - Professional Certified Marketer course
- AMA PCM Exam: Fundamentals of Marketing
- AMA PCM Exam: Marketing Ethics
- AMA PCM Exam: Marketing Analysis
- AMA PCM Exam: Consumer Behavior
- AMA PCM Exam: Business-to-Business Marketing
- AMA PCM Exam: Global Marketing
- AMA PCM Exam: Segment Targeting & Positioning
- AMA PCM Exam: Marketing Research
- AMA PCM Exam: Branding & Packaging Decisions
- AMA PCM Exam: Products & Services
- AMA PCM Exam: Supply Chain & Channel Management
- AMA PCM Exam: Retailing & Multichannel Marketing
- AMA PCM Exam: Integrated Marketing Communications
- AMA PCM Exam: Advertising, Public Relations & Sales Promotion
- AMA PCM Exam: Direct Marketing & CRM
- AMA PCM Exam: Interactive Marketing - Internet/Social Media
- AMA PCM Exam: Interactive Marketing - Personal Selling & Sales Management
- AMA PCM Exam: Marketing Metrics
- AMA PCM Exam Study Guide - Professional Certified Marketer Flashcards