About This Chapter
PLACE Marketing: Pricing Objectives & Strategy - Chapter Summary
The lessons in this chapter offer a review of information on how prices are determined, including strategies related to supply and demand, sales and e-commerce pricing. These videos can help you prepare for PLACE Marketing exam questions on the following topics:
- Types of pricing strategies
- Theory behind mark-up and break-even pricing
- Price elasticity
- Consumer perception and pricing strategy
- Strategies for e-commerce pricing
- How environmental and economic factors influence pricing
You can watch these lessons on a computer or mobile device, taking all the time you need to move through the chapter. Video tags make it simple to return to the lesson to review a key topic.
Objectives of the PLACE Marketing: Pricing Objectives & Strategy Chapter
Colorado requires passing the PLACE Marketing Education exam as a condition for licensing to teach the subject. This exam contains three subareas. Questions on the objectives covered in this chapter are in the subarea on marketing.
All questions on the exam are multiple choice, requiring you to choose the best answer from several options. The brief quizzes that accompany our lessons also consist of multiple-choice questions, and they allow you to practice answering questions in this format prior to taking the exam. Our quizzes also let you discover where your knowledge is lacking, giving you a chance for additional study.
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. 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 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. 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.
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. E-commerce Pricing: Definition & Strategy
E-Commerce pricing can be confusing and uncertain, especially for online businesses who have excessive competition or are not connected to their customers. Use the steps here to set your pricing strategies.
7. 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.
8. 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 PLACE Marketing Education: Practice & Study Guide course
- PLACE Marketing: Internal Marketing Principles
- PLACE Marketing: External Marketing Principles
- PLACE Marketing: Product & Services Marketing
- PLACE Marketing: Basic Math Concepts
- PLACE Marketing: Transportation, Distribution & Logistics
- PLACE Marketing: Sales Promotion
- PLACE Marketing: Entrepreneurship
- PLACE Marketing: Accounting
- PLACE Marketing: Finance
- PLACE Marketing: Macroeconomics
- PLACE Marketing: Microeconomics
- PLACE Marketing: International Trade & Global Marketing
- PLACE Marketing: Human Resource Management
- PLACE Marketing: Employee Staffing & Retention
- PLACE Marketing: Business Laws & Regulations
- PLACE Marketing: Business Technology
- PLACE Marketing: Computer Literacy
- PLACE Marketing: Information Systems
- PLACE Marketing: Business Communication
- PLACE Marketing: Education & Career Planning
- PLACE Marketing: Employment Skills
- PLACE Marketing: Career Development
- PLACE Marketing Education Flashcards