Marketing

Table of Contents

1. Topic pack - Marketing - introduction
2. 4.1 The role of marketing - notes
3. 4.1 The role of marketing - questions
4. 4.2 Marketing Planning - notes
5. 4.2 Marketing planning - questions
6. 4.3 Product introduction - notes
7. 4.3 Product - questions
8. 4.3 Product - simulations and activities
9. 4.4 Price - notes
   1. Price
   2. Summary of pricing strategies - SL
   3. Summary of pricing strategies - HL
   4. Cost-based strategies
   5. Cost-plus pricing (mark-up pricing)
   6. Marginal cost pricing
   7. Pricing - Contribution pricing
   8. Pricing - Absorption cost and full cost pricing
   9. Competition-based pricing
   10. Price leadership
   11. Predatory pricing
   12. Going rate pricing
   13. Market-based pricing
   14. Penetration pricing
   15. Skimming pricing
   16. Price discrimination
   17. Loss leader
   18. Psychological pricing
   19. Promotional pricing
   20. Supply and demand
   21. Elasticity
   22. Elasticity and sales revenue
   23. Price elasticity and the product life cycle
   24. Income elasticity of demand (YED)
   25. Cross elasticity of demand (XED)
   26. Advertising elasticity of demand (AED)
10. 4.4 Price - questions
11. 4.4 Price - simulations and activities
12. 4.4 Promotion - notes
13. 4.5 Promotion - questions
14. 4.6 Place (distribution) - notes
15. 4.7 International marketing - notes
16. 4.7 International marketing - questions
17. 4.8 E-commerce - notes
18. 4.8 E-commerce - questions
19. Printable version

4.4 Price - notes

In the previous sections we examined the role, definition and nature of marketing, marketing planning, the marketing mix, marketing objectives, positioning and market research. We then looked at the classification of products, new product development, the product life cycle, product portfolios and branding.

In this section we will analyse and evaluate pricing strategies and polices.

By the end of this section you should be able to:

• Analyse the effectiveness of each pricing strategy

• Evaluate the impact of changes in the conditions of supply and demand
• Calculate and interpret price, income, cross- and advertising elasticity
• Explain the relationship between elasticities and the product life cycle
• Analyse the relationship between price elasticity and sales revenue