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Ch 5: Pricing Strategies in Marketing

About This Chapter

Further your understanding of pricing determination and decision-making processes using the short lessons in this chapter. Boost your introductory business class studies or refresh your memory about this topic before taking a credit-granting exam.

Pricing Strategies in Marketing - Chapter Summary

What factors affect price determination? How does the marketing plan impact pricing decisions? What is meant by the term 'price elasticity'? These are some of the details you can expect to review when you refer to the text and video lessons comprising this chapter. Go over examples and definitions to help clarify information and make details easy to retain. View lessons as many times as needed and whenever it's most convenient for you with 24/7 accessibility from any device. Take self-assessment quizzes which measure how much you have learned and help you determine if further study is needed. Once you have finished this chapter, you should be able to:

  • Name the three types of pricing strategies
  • Explain how pricing impacts consumer perception
  • Identify what pricing decisions are based on
  • Understand mark-up and break-even pricing
  • Define value-based pricing and oligopoly
  • List environmental and economic factors affecting price
  • Discuss demand curve and price elasticity
  • Apply the formula used in marginal analysis and total cost in economics
  • Use break-even analysis methods to evaluate a marketing plan
  • Explain and provide examples of price discrimination

14 Lessons in Chapter 5: Pricing Strategies in Marketing
Test your knowledge with a 30-question chapter practice test
Pricing Objectives: How Firms Decide on a Pricing Strategy

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.

Pricing Strategy and Consumer Perception

2. 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.

Pricing Decisions: Profit-Oriented, Sales & Status Quo

3. 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.

Pricing Cost: What Motivates Mark-up and Break-Even Pricing

4. 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.

Value-Based Pricing: Definition, Strategies & Example

5. Value-Based Pricing: Definition, Strategies & Example

Price isn't everything when making a purchasing decision and a smart business knows it. In this lesson, you'll learn about value-based pricing. You'll also have a chance to reinforce your knowledge with a short quiz.

Economic Factors of Pricing and Pricing Strategy

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.

How Prices Can Be Adjusted in Response to Environmental Factors

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.

Understanding the Demand Curve in Microeconomics

8. Understanding the Demand Curve in Microeconomics

Learn what the demand curve in microeconomics is. Find out the common components of the demand curve and how they are created. See what causes a movement along a demand curve and what causes a shift of the entire curve.

Price Elasticity: Understanding Supply and Demand

9. 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.

Marginal Analysis in Economics: Definition, Formula & Examples

10. Marginal Analysis in Economics: Definition, Formula & Examples

In this lesson, we'll discuss marginal analysis, a very important economic concept. It explains how individuals and businesses make decisions regarding commodities. We'll go over the formula and look at examples before concluding the lesson with a quiz.

Total Cost in Economics: Definition & Formula

11. Total Cost in Economics: Definition & Formula

Learn about what total cost really means in the economic world. Find out the important components that make up total cost and see how to correctly calculate some common total costs of products and services you may be familiar with.

Using Break-Even Analysis to Evaluate a Marketing Plan

12. Using Break-Even Analysis to Evaluate a Marketing Plan

Watch this video lesson to learn how you can use a break-even analysis to help you decide whether a particular marketing plan is worth it or not. Learn how this analysis let's you see how many products you need to sell to make it worth it.

What is an Oligopoly? - Definition & Impact on Consumers

13. What is an Oligopoly? - Definition & Impact on Consumers

In this lesson, we will discuss a market structure that is actually quite common in the United States, as well as most other industrialized countries: oligopolies. Oligopolies are the market structures that sit somewhere between a monopoly and perfect competition. In this lesson, we will find out how.

Price Discrimination: Definition, Types & Examples

14. Price Discrimination: Definition, Types & Examples

This lesson defines types of price discrimination. We'll use several scenarios to explore the use of price discrimination in the real world.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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