Pricing Objectives
Pricing decisions will form a key part of the firm’s overall marketing strategy. In this activity, the task is to identify why the firm has adopted their particular pricing approach.
Pricing decisions will form a key part of the firm’s overall marketing strategy. In this activity, the task is to identify why the firm has adopted their particular pricing approach.
The task for this activity is to work through the two examples for cost-plus pricing for students to gain a better understanding of this method.
Work through two examples of using break-even analysis for pricing, to gain a better understanding of this approach.
EXCLUSIVE MEMBER 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
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
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.
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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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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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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?
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Students need to identify what would be the most appropriate pricing reaction for various market situations and competitive actions.
EXCLUSIVE MEMBER ACTIVITY