About This Chapter
Below is a sample breakdown of the Pricing Strategy in Marketing chapter into a 5-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Monday|| Relationship Selling vs. Traditional Methods: Definition and Purpose; |
Personal Selling: The Steps of the Selling Process
| The importance of planning, problem solving and consumer interest; |
The steps and advantages of personal selling
|Tuesday|| Pricing Decisions: Profit-Oriented, Sales and Status Quo; |
Pricing Objectives: How Firms Decide on a Pricing Strategy
| A look at the potential results of pricing strategies, including increased sales and profits; |
The characteristics of different pricing objectives
|Wednesday|| Pricing Strategy and Consumer Perception; |
Price Elasticity: Understanding Supply and Demand
| An exploration of the ways in which price can alter a consumer's perception of a product's value; |
The importance of supply and demand
|Thursday|| Pricing Cost: What Motivates Mark-Up and Break-Even Pricing; |
Price Selection: How Businesses Select the Correct Price for Products
| An explanation of the ways in which marketing managers determine the prices of products; |
Three major pricing strategies
|Friday|| How Prices are Determined and Affected by Environmental Factors; |
Economic Factors of Pricing and Pricing Strategy
| Trade allowances and different kinds of discounts; |
The effects of inflation and recessions on product pricing
1. Relationship Selling vs. Traditional Methods: Definition and Purpose
Promoting is an important method of communicating the benefits of a product or service. The traditional way of selling does not take into account developing a long-term relationship with customers and is more concerned with just making a sale. The proper way of selling in a marketing environment is relationship selling. This is concerned with solving customer product needs and delivering long-term customer service.
2. Personal Selling: The Steps of the Selling Process
This lesson introduces you to the concept of personal selling. You will learn about the steps in the personal selling process, including how to close a deal.
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 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.
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. 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.
7. 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.
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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