Description
Learn in a classroom environment with your peers, virtually, with an instructor online.
Course Length: .5 day
Target Audience: General
Learning Objectives:
In the course you will learn how the price could be defined as the total of pecuniary or other efforts that the consumer is willing to make in order to acquire, in a given situation, the value attached to a product, a service or a combination of both. You will have hands experience to determine on how much your products and services costs. You will also get tips and tools for setting your pricing and calculating your way to profit. We will help answer these questions: Can we tell if we are making money? Could we charge more for our products and/or services? Can we justify charging our clients more?
Course Content:
- Two External Factors:
1) General objectives of the marketing strategy
2) The cost structure
- Three External Factors:
3) Price policies of competitors and distributors
4) The price elasticity of demand
5) Regulatory framework & obligation
- The general objectives of the marketing strategy:
1) Profitability and profit objectives
2) Sales volume objectives
3) The image objectives
4) The objectives of services and/or products lines & Products/Services Mix
- After determining the general objectives of the price marketing strategy, now we have to look at the cost structure before determining prices.
The typology of the costs is:
1) fixed costs – variable costs = total costs
2) average costs
3) marginal costs
4) direct and indirect costs
- Understanding the elasticity of the demand in relation to price
- The Strategic choices in pricing policy are
1) The uniform or flexible price policy and
2) Price policies in relation to the life cycle phases of a product and/or service
- Methods of fixing prices:
- Based on internal price approach
1) The cost-plus method
2) The method based on the break-even analysis
3) The marginal cost indexing method.
- Based on external price approach
1) Methods oriented towards competition
2) The demand-oriented method.
- Price modulation:
- Based on Discount policies:
1) Volume discounts
2) Seasonal discounts
3) Discounts related to payment terms
4) Functional discounts
- Based on the rebate policy:
1) Discounts for advertising purposes
2) Commissions for department managers
3) Return offers
- and lastly the Coupons and discounts policy.
Supplement Material
A student manual is available for the learner to follow during the instructor’s presentation.
Benefits to the participants
Throughout the activities, the participants will gain a better understanding of pricing and how it can influence marketing strategies.
Course Evaluation
A course evaluation will be completed by the learners once the course is finished.
Note: The course outline may be subject to change.
