About This Chapter
Selling and Pricing Strategy - Chapter Summary and Learning Objectives
Selling seems like a pretty straightforward, cut-and-dried concept, right? Either something sells or it doesn't. It's not really that simple, though. In these marketing lessons, you'll learn about the different kinds of selling, which include both relationship and personal selling.
In addition to selling, these lessons cover the complicated topic of pricing. As you can imagine, a great deal of consideration goes into the way that prices are determined. There are different philosophies of pricing, which include profit-oriented, sales, and status quo pricing. Additionally, these lessons discuss pricing strategies and how they're developed and chosen.
Other pricing-related topics covered in this lesson include price elasticity as it relates to supply and demand. You'll learn about elastic and inelastic prices, and the various differences between them. These lessons also cover pricing cost and what motivates what's known as mark-up and break-even pricing.
These lessons should prove particularly interesting if you've ever wondered what motivates businesses to price items in a certain way. It might seem arbitrary sometimes, but there's actually a lot involved in determining the correct price for a product. The selection of prices is covered in this set of videos, as is the effect that environmental and economic factors can have on pricing strategy. Thanks for watching this series!
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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Other chapters within the Business 102: Principles of Marketing course
- Marketing Philosophies and Ethics
- Competitive Advantage
- The Marketing Environment
- International Marketplace
- Consumer Decision Making
- Business Marketing and Marketing Research
- Segmentation and Product Marketing
- Managing a Product and Retailing
- Services Marketing, Marketing Channels & Supply Chain Management
- Promotion, Advertising and Public Relations
- Studying for Business 102