About This Chapter
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
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 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.
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.
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.
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.
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. 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. 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.
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.
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.
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.
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.
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.
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.
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Other chapters within the TECEP Introduction to Marketing: Study Guide & Test Prep course
- Overview of Marketing
- Marketing Planning & Strategy
- Market Research & Analysis
- Marketing Environment Basics
- Consumer Behavior, Satisfaction & Loyalty
- Segmentation, Targeting, & Position in Marketing
- Marketing Ethics Basics
- Business Marketing Overview
- Global Business Marketing
- Product & Service Management
- Marketing Channels & Distribution
- Supply Chains & Logistics in Marketing
- Direct Marketing Communications
- Integrated Marketing Communications Overview
- Marketing & Social Media
- Personal Selling Communication
- TECEP Introduction to Marketing Flashcards