About This Chapter
Product Pricing and Selling - Chapter Summary
In this chapter, our video instructors explain how companies decide on a pricing strategy. You'll be introduced to price elasticity, or how the market is affected by supply and demand. This chapter will also discuss what motivates mark-up and break-even pricing.
You'll learn how prices are determined and affected by environmental factors. As you progress through this chapter, you'll study the economic factors of pricing. After you complete this chapter, you should be able to:
- Describe how businesses select the correct price for products
- Understand how firms decide on a pricing strategy
- Understand the role of consumer perception in a pricing strategy
- Describe how supply and demand affect price
- Understand the motivating factors behind pricing cost
- Differentiate between profit-oriented, sales, and status quo pricing decisions
Our online lessons on product pricing and selling are focused around a professional, experienced instructor's brief, yet thorough, video presentation. Each lesson also comes with a self-assessment quiz, which helps you track how well you've learned the lesson, and a written transcript that provides an alternative way for you to access the information in the lesson. Easy-to-use video tools include tags that allow you to toggle back and forth between the most important points in this lesson and links connected to the key words and phrases that take you to text lessons for even more in-depth 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 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. 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.
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. 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.
6. 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.
7. 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.
8. 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.
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Other chapters within the High School Marketing for Teachers: Help & Review course
- How Organizations are Structured & Designed
- General Business Management
- Ethics and Social Responsibility in Organizations
- Business Law & Regulation
- Economic Basics
- Business and the Economy
- The Economy and the US Government
- Entrepreneurship & Types of Businesses
- Marketing Basics
- Product Development & Distribution
- Promotion & Advertising
- Selling & Customer Service
- Market Research and Segmentation
- Strategic Planning for Marketers
- Global Business Strategies and Challenges
- Business Communication
- Business Analytics
- Computer Basics for Business
- The Internet and Business
- Marketing Education
- Career Planning for High School Students
- Laying the Foundation for a Marketing Career
- Marketing Employment Skills
- Marketing Career Stages
- Marketing Instruction & Assessment