Module 3-Week 9: Pricing Strategies

Learning Outcomes

  • Investigate the nature and importance of pricing products and services.
  • Recognize the constraints on the firm’s pricing. 
  • Distinguish the objective the firm has in setting pricing.
  • Assess what a demand curve is and describe its relevance to pricing.
  • Appraise what price elasticity of demand means and how it relates to pricing.
  • Perform a break-even analysis. 
  • Demonstrate four approaches to pricing as well as factors considered to establish prices for products/services. 

Description

Week 9 is dedicated to pricing. Pricing is one of the marketing mix elements. How much control a firm has on its pricing depends on the structure of the market such as monopoly, oligopoly, perfect competition, and monopolistic competition. First, we consider the nature of pricing for services/products. Then we discuss pricing objectives and constraints. A step by step process in setting a price is examined in detail this week. Different orientations in pricing are identified with examples including profit, cost, demand, and competition orientations. We also pay attention to final adjustments in pricing at the end of this week’s last lesson.   

Related Readings  

It is recommended that you complete the accompanied readings from the course textbook that complements the lessons. The readings include content and additional examples that will allow you to achieve the indicated learning outcomes as indicated in your textbook for Chapter 13 and will cover content for Week 9. You will be expected to achieve the learning outcomes LO1 and LO2 (Lesson 9.1), LO3 and LO4 (Lesson 9.2), and LO5 (Lesson 9.3 and 9.4). 

Activities and Assignments