In this activity, there is a key pricing decision to be made in the two situations presented. Keeping in mind the firm’s/brand’s positioning, students consider whether these decisions are logical.
EXCLUSIVE MEMBER ACTIVITY
Pricing and Positioning Review the Teaching Activity
While it is generally acknowledged that it is best to stay out of a price-cutting war, sometimes competitor actions will force you into one. In this activity, students need to counter when one of their competitors cuts their prices – how will they respond?
Responding to Competitor Pricing Review the Teaching Activity
Students need to identify what would be the most appropriate pricing reaction for various market situations and competitive actions.
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Competitive Pricing Responses Review the Teaching Activity
This activity requires students to determine a price solely based on what value the product generates for the customer. As there are only insignificant variable costs involved, what price is right?
EXCLUSIVE MEMBER ACTIVITY
Value Pricing – A Tough Decision Review the Teaching Activity
Students assume that they decide to start a business as a marketing consultant. How much do they need to charge for their consulting services?
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Setting Your Price Review the Teaching Activity
This activity follows the discussion in a manager’s meeting for a firm that produces entertainment/game consoles and they are trying to decide whether to use a price penetration or price skimming strategy in the upcoming launch of their game console.
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Price Penetration or Price Skimming? Review the Teaching Activity
In this activity, the student task is to determine what average prices will need to be charged by these small retailers so they end up making a good profit.
EXCLUSIVE MEMBER ACTIVITY
What Price Mark-up is Needed? Review the Teaching Activity
Students set prices using marginal analysis. This pricing approach looks for the maximum profit point, considering the firm’s cost structure and the likely sales at different price points.
EXCLUSIVE MEMBER ACTIVITY
Price Calculations: Marginal Analysis Review the Teaching Activity
Students use target profit pricing to determine how many units we will need to sell to both cover costs AND achieve a set profit.
EXCLUSIVE MEMBER ACTIVITY
Price Calculation: Target Profit Pricing Review the Teaching Activity
Work through two examples of using break-even analysis for pricing, to gain a better understanding of this approach.
EXCLUSIVE MEMBER ACTIVITY
Price Calculation: Breakeven Pricing Review the Teaching Activity