About This Chapter
GACE Marketing: Pricing Strategies - Chapter Summary
This chapter's lessons on how businesses determine pricing for their goods and services are designed to help you prepare for the GACE Marketing Education exam. Our videos will help you prepare for questions on the following topics:
- Examples of pricing strategies
- Types of pricing decisions
- How companies develop a pricing strategy
- Demand and supply
- Determining mark-up and break-even pricing
- How to calculate markdown and discount pricing
- The process of selecting the correct price
- Environmental and economic factors that influence prices
You can watch these lessons anytime on a computer, tablet or smartphone. Embedded video links let you quickly access sections of the lesson that require review.
Objectives of the GACE Marketing: Pricing Strategies Chapter
Georgia requires passing the GACE Marketing Education Assessment as a condition for certification to teach the subject. The assessment contains two tests, and questions on the material in the Pricing Strategies chapter are in the Pricing subarea of test II. This subarea accounts for 17% of test II's scoring.
All questions on the GACE Marketing Education Assessment are multiple choice, and the exam is delivered on computer. The quizzes that follow our video lessons are also multiple-choice, computer-based tests. In addition to giving you practice answering questions in this format, the quizzes let you assess your knowledge and see where you need extra study.
1. 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.
2. Pricing Decisions: Profit-Oriented, Sales & Status Quo
Companies need to determine the main objective of their pricing strategy. The different objectives can be based on profit, sales, competition or customers. The end result should be customer satisfaction.
3. 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.
4. 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.
5. 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.
6. 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.
7. How to Calculate Markdown & Discount Pricing
Retailers use markdowns and price reductions for many reasons, including inventory reduction or seasonal changes. We'll learn how these reductions are calculated and their impact on the pricing strategy.
8. Price Selection: How Businesses Select the Correct Price for Products
Marketing managers need to select the correct price for their product as part of the marketing mix. The three pricing strategies are price skimming, penetration pricing and status quo.
9. How Prices Can Be Adjusted in Response to Environmental Factors
Marketers have the ability to fine-tune the base price of products in the marketing mix. They can use discounts, rebates, and allowances to temporarily change the price to increase sales and profits.
10. 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.
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Other chapters within the GACE Marketing Education (546): Practice & Study Guide course
- GACE Marketing: Information Management
- GACE Marketing: Researching, Collecting & Evaluating Data
- GACE Marketing: Strategies & Segmentation
- GACE Marketing: The Marketing Plan
- GACE Marketing: Role & Impact of Promotion
- GACE Marketing: Economics Overview
- GACE Marketing: Distribution Channels
- GACE Marketing: Product Management
- GACE Marketing: Brand Positioning & Consumer Protection
- GACE Marketing: The Selling Process
- GACE Marketing: Professional Development
- GACE Marketing Education Flashcards