About This Chapter
Praxis Marketing Education - Pricing: Chapter Summary
If you're an aspiring high school marketing teacher who's preparing for the Praxis Marketing Education test, this chapter on pricing could prove a valuable study tool. Through a series of video lessons, you'll explore pricing decisions and objectives, as well as pricing strategy and consumer perception. Other topics of study in this chapter include the following:
- Supply and demand
- Mark-up and break-even pricing
- Markdowns and discounts
- Selecting the correct price for products
- How prices are determined and affected by environmental factors
- Economic factors of pricing and pricing strategy
Praxis Marketing Education - Pricing Objectives
Most states require that you pass the Praxis Marketing Education test if you intend to teach marketing at a public high school. This test is composed of 120 multiple-choice questions, which you're given two hours to complete. Questions about pricing, which make up approximately 12% - or about 14 questions - of the test, focus on the role of pricing, pricing strategies and pricing mathematics.
This chapter on pricing is led by experienced professional educators. Each topic is covered through a video lesson and a self-assessment quiz, which features questions like those you'll see on the Praxis. You might find it beneficial to watch the videos and take the quizzes multiple times to make sure you've fully absorbed the information presented.
1. 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.
2. 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.
3. 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.
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 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.
6. 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.
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 Praxis Marketing Education (5561): Practice & Study Guide course
- Praxis Marketing: Professional Development
- Praxis Marketing: Economics
- Praxis Marketing: Finance
- Praxis Marketing: Types of Business Ownership
- Praxis Marketing: Business Law
- Praxis Marketing: Workers' Rights & Collective Bargaining
- Praxis Marketing: Business Communication
- Praxis Marketing: Management
- Praxis Marketing: Information Management
- Praxis Marketing: Research and Segmentation
- Praxis Marketing: Strategic Planning
- Praxis Marketing: Marketing Channels
- Praxis Marketing: Product Management
- Praxis Marketing: Promotion
- Praxis Marketing: Selling
- Praxis Marketing Education Flashcards