04 lesson pricing strategies 1

7/29/2019 04 Lesson Pricing Strategies 1

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Lesson Title: Pricing Strategies

Lesson Duration: 2 hours

Industry Competencies: Participants will:

apply the elements of the marketing mix to a product or service

apply the elements of the promotional mix to a product or service

apply the elements of pricing strategy to a product or service.

Specific Objectives: Participants will:

identify concerns that need to be addressed in developing a marketing mix

(product, place, price, promotion)

identify similarities and differences between industrial and consumer markets

relating to the marketing mix

illustrate how the marketing mix factors are adapted to real industrial markets

work collaboratively in a group

communicate effectively using written, oral, and multimedia methods.

Assessment(s):

The following rubrics will be used in this lesson.

Multimedia Presentation RubricCompetency

or Task

Highly

Competent Competent

Needs

Improvement

Content - Accuracy All content throughout

the presentation is

accurate no factual

errors.

Most content is accurate

but there is one piece of

information that seems

inaccurate.

Content confusing or

contains more than one

factual error.

Sequencing ofInformation

Information organized in

a clear, logical way.

Easy to anticipate the

next element.

Most information is

organized in a clear,

logical way. One slide or

piece of information is

out of place.

No clear plan for the

organization of

information.

Effectiveness Includes all material

needed to give a good

understanding of the

topic.

Lacking a key element.

Consistent with drivingquestion.

Lacking several key

elements and has

inaccuracies. Completely

inconsistent with driving

question.

Use of Graphics All graphics attractive

(size and colors) and

support the topic of thepresentation.

A few graphics

unattractive but all

support the topic of thepresentation.

Graphics unattractive and

detract from the content

of the presentation.

Text - Font Choiceand Formatting

Formats (color, bold,

italic) carefully planned

to enhance readability

and content.

Format carefully planned

to enhance readability.

Difficult to read the text

material.

Spelling andGrammar

No misspellings or

grammatical errors.

1-2 misspellings, but no

grammatical errors.

More than 2 grammatical

and/or spelling errors.

Delivery Spoke at a good rate. Spoke at a good rate. Spoke a little faster or


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Volume excellent for

setting. Good grammar.

Maintained eye contact

with audience.

Volume appropriate.

Good grammar.

Maintained some eye

contact with audience.

slower than necessary, or

too quietly or loudly.

Used unacceptable

grammar. Failed to

maintain eye contact.

Relied too much on their

notes.

Assessment Instrument - Group Work - All Group AssignmentsCompetency

or Task

Highly

Competent Competent

Needs

Improvement

Contributions Always willing to help

and do more. Does more

than required. Routinely

offers useful ideas.

Cooperative. Works at

assignments. Usually


Seldom cooperative.

Does little work. Rarely


Cooperation Always listens to, shares

with, and supports theefforts of others. Tries to

keep people workingtogether.

Usually listens to, shares

with, and supports theefforts of others. Does

not cause problems in thegroup.

Rarely listens to, shares

with, or supports theefforts of others. Often is

not a good team member.

Focus on the TaskAlmost always focused

on the task and what

needs to be done. Self-directed.

Focuses on the task and

what needs to be done

most of the time.

Does not focus on the

task and what needs to be

done. Lets others do thework.

Assessment Instrument - Extended Constructed Response (ECR) - Topical Statements

and All Assigned TopicsCompetency

or Task

Highly

Competent Competent

Needs

Improvement

Context and

Argument

Context appropriate.

Argument satisfactory.

Clearly stated thesis

included.

Context appropriate.

Argument satisfactory.

Context inappropriate.

Argument unsatisfactory.

Evidence Abundant, relevant

specifics (names, events,

legislation, courtdecisions, etc.) provided.

Includes obscure, but

important evidence.

Thorough chronology.

Ample and appropriate

evidence provided.

Evidence is largely

missing or generalized.

Analysis Well-reasoned cause and

effect arguments.

Fully explained con-

clusions. Refers to views

of others.

Organizes argument and

uses data to support

conclusions.

Recognizes causation,

change, and continuity.

Minimal analysis or

fallacious reasoning.

Historical

Accuracy

Virtually error free;

minor mistakes do not

compromise argument.

May have a few errors.

Mistakes may slightly

hinder argument, but do

not detract from the

overall accuracy.

Many errors.

Thoroughness Covers all areas of

question in approximateproportions to their

Covers entire question,

but may be slightlyimbalanced.

Covers question

superficially.May not complete all


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importance. tasks.

Presentation Uses clear, appropriate

and precise language.

Cohesive organization.

Very few grammatical

errors.

Uses clear language.

Well organized.

Contains few

grammatical errors.

Inconsistent organization.

Grammatical errors cloud

argument to a major

degree.

Assessment Instrument - Class Seminar for All Scheduled MeetingsCompetency

or Task

Highly

Competent Competent

Needs

Improvement

Participation Active level of

participation, offering

solid comments and ideas

but not overbearing,

allowing others to engage

in discussion.

Adequate participation

offering valuable

comments at times, with

only occasional

interruption of others.

Unacceptable interaction

and participation with

numerous interruptions

or off-topic discussions.

Contribution Comments and ideas are

of high value and enable

more intense discussion

of seminar topic.

Comments are

appropriate and on topic,

with some ideas of high

value, enabling gooddiscussion of seminartopic.

Rarely offers appropriate

comments and seeks to

disrupt the meeting.

Cooperation High level of courtesytowards others

facilitating engaging and

topical discussion on

selected topics.

Appropriate level ofcourtesy towards others

enabling good discussion

on seminar topic and

little disruption observed.

Exhibited little courtesytowards others through

inappropriate comments

and behavior during

meeting.

Topic Focus Comments are always

focused on seminar topic,

including questions and

discourse with others

during entire meeting.

Comments usually on

target and appropriate,

including questions and

topical discourse during

entire meeting.

Not focused on topic and

seeks to disrupt with

inappropriate questions

and comments

throughout the meeting.

Assessment Instrument - Journal (Daily Entries Required)Competency

or Task

Highly

Competent Competent

Needs

Improvement

Organization Journal contains a

chronological section

as well as sections for

sketches, reference

sources, people,business contacts, etc.

Parts of the journal

show organization,

however some parts are

mixed into other

sections.

Journal is sloppy and/or

haphazardly organized.

Daily Entries Details of informationgathered and/or work

accomplished for each

day is entered.

Journal is missing a fewdaily entries.

Journal is missing manydaily entries.

Content Journal entries aresufficiently descriptive

to completely recreate

the daily accomplish-

ments.

Most information isdetailed however

important details are

missing to complete the

task.

Journal entries areinsufficiently

descriptive to

completely recreate the

daily accomplishments.

Proper

Citation of

Journals!

Has APA approved

documented citations of

all sources in the

All information is

documented and some

sources are incorrectly

Some sources are

missing and other

sources are incorrectly


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Books!

Videos!

Websites

journal and information

is documented properly.

cited. cited.

Drawings

and Sketches

Journal contains

sketches and

drawings that are

related to the topicand express what will

be created.

Sketches are drawn

explaining the topic but

are poorly done.

Quantity of sketches

and drawings are

insufficient to explain

the topic.

Referencing

Materials

(Note Cards)

Note cards contain

paraphrased infor-

mation from source and

cited reference.

Note cards missing

some citations of

sources.

Note cards have

incomplete information

and lack citations.

Phone

ConversationAbstracts

Phone conversations

are documented for:contact, phone number,

information, company,address, date.

Most information

required is complete.

Missing information

vital for calling backcontacts.

BusinessContacts

Lists business contactsincluding addresses,

phone numbers,

e-mails, company, fax

numbers, discussion

exists.

Has all contacts butinformation is missing.

Some contacts aremissing and infor-

mation is missing.

Assessment Instrument - Research Paper for All Assigned TopicsCompetency

or Task

Highly

Competent Competent

Needs

Improvement

Timeliness The participant has sub-

mitted the final version

of the research paper on

time.

The participant has sub-


of the research paper

one day late.

The participant has sub-


of the research paper

one week late.

Content-Whole Paper

The participant's papercontains all content

sections required by the

teacher. Sections on

Introduction,Identifying the

Problem, Initial

Research, The Proposed

Solution, Researching

the Solution,

Prototyping, Testing,

Evaluating test results

and data, and a con-

clusion are mostcommon.

The participant ismissing only one

section which was

applicable to the

research project.

The participant wasmissing multiple

sections, or sections

expected to be separate

were combined.

Content -

Within EachSection

Each section of the

paper contains thematerial appropriate for

that section. The

sections are cross-

referenced where

necessary. No material

is misplaced.

There are minor occur-

rences where infor-mation is placed in a

section in which it does

not belong, or sections

do not refer to other

sections where it would

make sense to do so.

Large quantities of

information areplaced in sections

inconsistent with the

purpose of the section.


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Organization Within each section, the

material presented is

very clearly organized.

Discussion progresses

along lines of logic.

Readability is facilitated

by crisp organization ofthoughts.

Within each section,

material is presented

in a fairly well

organized manner, but

there are some items

which seem misplaced.

Each section stillfollows an outline.

Evidence of

organization, but with

serious flaws.

Decisions discussed

without background

information.

Language

Mechanics

Free of spelling,

punctuation, and

grammatical errors.

Minimal occurrences of

spelling, punctuation,

and grammatical errors.

Distractingly frequent

occurrences of spelling,

punctuation, andgrammatical errors.

TechnicalAccuracy

The technical content ofthe paper is without

flaw. Exacting care has

been given to ensure

facts, data, and results

are stated in a

technically correct

manner. Numerical

quantities are givenproper units.

Calculations areproperly documented

and executed.

Minor technical flawsexist in words, units, or

calculations, but these

do not detract from the

overall points made by

the author.

Numerous minortechnical flaws exist.

Units are ignored or

misused. Overall

credibility of the

author's proficiency is

damaged.

References Referenced material is

annotated in proper

APA or MLA style

consistently throughout.

Works Cited page is in

correct format. All

items requiring citation

are properly cited.

A few minor errors

or omissions exist in

the referencing of

others' work.

Numerous minor or

some major errors

or omissions exist

in the referencing of

others' work.

Appendices(if appropriate)

The paper includesappropriate appendices

to support the text of

the paper. Appendicesare referenced in the

text of the paper.

Bulky amounts ofinformation or drawings

are included in the main

body of the paper itself,rather than in the

appendix. References

missing or in error.

Some appendixinformation provided,

but it is obviously

incomplete.

Assessment Instrument - Oral Presentation for All Assigned TopicsCompetency

or Task

Highly

Competent Competent

Needs

Improvement

Organization Participant presents

information in logical,interesting sequence

which audience can

follow.

Participant presents

information in logicalsequence which audience

can follow.

Audience has difficulty

following presentationbecause participant

jumps around.

Subject Knowledge Participant demonstrates

full knowledge (more

than required) by

answering all class

questions with

explanations and

Participant is at ease with

expected answers to all

questions, but fails to

elaborate.

Participant is

uncomfortable with

information and is able to

answer only rudimentary

questions.


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elaboration.

Graphics Participant's graphics

explain and reinforce

screen text and

presentation.

Participant's graphics

relate to text and

presentation.

Participant occasionally

uses graphics that rarely

support text and

presentation.

Mechanics Presentation has no

misspellings orgrammatical errors.

Presentation has no more

than two misspellingsand/or grammatical

errors.

Presentation has three or

more misspellings and/orgrammatical errors.

Eye Contact Participant maintains eye

contact with audience,

seldom returning to

notes.

Participant maintains eye

contact most of the time

but frequently returns to

notes.

Participant occasionally

uses eye contact, but still

reads most of report.

Elocution Participant uses a clear

voice and correct, precise

pronunciation of terms so

that all audience

members can hear

presentation.

Participant's voice is

clear. Participant

pronounces most words

correctly. Most audience

members can hear

presentation.

Participant's voice is low.

Participant incorrectly

pronounces terms.

Audience members have

difficulty hearing

presentation.

Resource(s):

Print Materials -

Blankenship, A. B. and George Edward Breen. State of the Art Marketing Research.NTC Business Books, Lincolnwood IL, 1993.

Boone, Louis E. and David L. Kurtz. Contemporary Business. 8th ed. Dryden, FortWorth, 1996.

Dutka, Alan. AMA Handbook for Customer Satisfaction. NTC Business Books,

Lincolnwood IL, 1994.

Lamb, Charles W., Jr. and Joseph F. Hair, Jr. and Carl McDaniel. Marketing. 3d ed.

South-Western Publishing Co., Cincinnati. 1995.

Lamb, Charles W., Jr. and Joseph F. Hair, Jr. and Carl McDaniel. Marketing:

Instructors Manual. 3d ed. South-Western Publishing Co., Cincinnati. 1995.

McDaniel, Carl, Jr. and Roger Gates. Contemporary Marketing Research. West

Publishing Co., St. Paul MN. 1996.

Runyon, Kenneth E. and David W. Stewart. Consumer Behavior. 3d ed. Addison-Wesley Educational Publishers, Inc., Reading PA. 1998.

Audiovisual -

Internet sites - www.mplans.com(source for many types of marketing plans according to

industries and products)Key word search -
http://www.mplans.com/http://www.mplans.com/


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Market Planning, Marketing Plans, Marketing, Promotional Plans, Market a Product,

Marketing and Promotion of Products, Marketing Analysis, Marketing Data Analysis,

Marketing Strategies Analysis, Pricing Strategies, Effective Pricing Methods, PricingProducts Strategies

Purpose of the Lesson:Participants will introduce participants to pricing strategies that businesses use and how

those strategies relate to customer satisfaction.

Required Knowledge and Skills: Participants will:

read technical journals and periodicals effectively

perform basic operations in mathematics

analyze basic algebraic expressions and statistical data

understand all elements of a marketing mix

understand all elements of a promotional mix

understand how to analyze product markets using appropriate data.

Tools, Materials, Equipment Needed:

Per teams of 2-4 participants: (The instructor can decide which product(s) to use to guide thislesson. It might be worthwhile to survey participant product interest.)

A recent issue of a popular tennis magazine.

A recent issue of a popular skateboard magazine.

A recent issue of a popular sports equipment catalog will also be useful or any

product catalog valued by participants and approved by the instructor for worthy

products.

Copies of all materials developed in the Marketing and Promotional Mix and Market

Analysis Strategies lessons. This information should be used to complete this lesson inpart.

Specific Safety Requirements:

Each activity includes specific information about appropriate safety procedures, as well

as any necessary instructions for the disposal of materials used. Participants should

always wear safety glasses when engaging in laboratory activities. In addition, anyone

using equipment should be familiar with the operating instructions provided by themanufacturer of that equipment and should follow safe and proper operating procedures

at all times.


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Lesson Elements: (5-E Model)

Engagement:

Guide participants in a discussion that makes them aware of both a focus on price and afocus on benefits and of how those perspectives interact. Encourage participants to

consider situations in which the price of an item had an impact on whether or not they

wanted to or were able to purchase it. (Hopefully, the instructor will allow them todiscuss products they use frequently and value- skateboards, cell phones, cars, bicycles,

etc.)

Ask them to consider how price might affect decisions to purchase.

Challenge them to defend or attack the idea that the lowest price does not always

represent the best purchase.

If the lowest price does not necessarily represent the best purchase, what criteriashould be used to identify the best purchase?

Participants can improve their awareness and comprehension of pricing strategies byapplying their existing knowledge of pricing to ads. Contrasting the different pricing

strategies between consumer ads and industrial ads will lead them to differentiate pricing

strategies by market. Discussing the relationship between pricing and customersatisfaction helps to make clear how they are related.

Initial Team Work should include:1. Form teams of three or four participants.

2. Make sure that each team has advertisements from both newspapers and trade

journals.

3. Give the teams 20 minutes to analyze the pricing strategies represented by theadvertisements by answering the questions on Worksheet.

Team Analysis1. Have the teams reassemble in a group to report their results.

2. Have the group discuss the results and their similarities and differences.

3. Have participants attempt to generalize and summarize what they have learned

about pricing strategies.

Continuing

1. Ask participants who are employed to share how prices are set at their places ofemployment.

2. How effective are those strategies at satisfying their customers?

3. What conclusions can be drawn about the relationship between pricing andcustomer satisfaction?


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Exploration:

Participants should begin their exploration by reviewing the following information as

presented by the instructor or with research prompts to locate such information usingavailable resources.


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The information about Product Classifications should be recognized and understood by

participants. The following is offered for the instructor to guide participant learning via

independent research or a class lecture/discussion.

Product Classifications

Consumer Products

Unsought

Convenience

Speciality

Shopping

Industrial Products

Raw materials

Processed materials

Component part

Major equipment

Accessory equipment

Supplies

Product Variables is another key topic for participants to understand. The information

presented below should be addressed, discussed, and applied throughout this lesson andfuture product development by participants in this course. Have participants reflect on

products they use frequently and value for a comparison of these product variables!

Product Variables

Amount of product

Packaging

Size

Warranties

Supplementary information

One size does not fit all!

Product Lifecycle is another key concept for participants to understand with regard to

establishing the most appropriate pricing over the life of the product. The image below is

offered to guide this discussion via research or direct instruction as a lecture/discussionstrategy.


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Finally, the image below presents the Marketing Strategies in combination with the

Product Life Cycle so participants can better understand how all these elements come

together to form an effective process for product development, marketing, promotion,pricing and eventually customer satisfaction leading to significant sales and product

improvement.


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Explanation:

Worksheet: Team Analysis

Discuss in your team the following questions.

Newspaper Advertisements

1. What pricing approach is being used and why?

2. Are there any price wars going on and for what kinds of products?

Trade Journal

3. What pricing approach is being used and why?

4. Are there any price wars going on? For what kinds of products?

5. Contrast the two types of ads (consumer and industrial).

6. Identify several local businesses that you patronize, such as grocery stores, musicstores, electronic stores, hair salons, etc.

7. What pricing strategies seem to be at work in these outlets?

8. Discuss with your team whether the same pricing strategies are used for industrial

products. Explain your answers.

Finally - Discuss the relationship between price and customer satisfaction.

The following questions should also be addressed.

Pricing Strategies

Participant:

Date:

Use this sheet to answer the following questions. Use the reverse of the sheet as

necessary.

1. Compare and contrast the pricing strategies for consumer and industrial markets.

Explain.

2. Use at least three product examples as a basis for describing the relationship between

pricing and customer satisfaction.


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Extension:

Participants will be challenged to address the following situation.

Scenario:

Your team has been assigned to analyze the pricing strategies exemplified in price-oriented advertisements from local newspapers and trade journals.

(Allow participants to use the same products from the previous lessons as a continuationor new products can be introduced per available resources- magazines, newspapers,

catalogs, etc.)

Team Assignment:

1. Make sure your team has advertisements from both newspapers and trade

journals.

2. Use the questions on Worksheet: Team Analysis to guide your analysis of thepricing strategies exemplified by the ads. (These questions are presented in the

explanation section of this lesson.)

3. Have your recorder record the consensus answers for the questions on flipchart

sheets.

4. The instructor will call for teams to reassemble and a spokesperson for the groupwill present their conclusions and ideas to others in the class.

Evaluation:

The following rubric is offered for specific content in this lesson.

Competency

or Task

Highly

Competent Competent

Needs

Improvement

Pricing Strategies,

Question 1

Response identifies and

explains comparisons

regarding marketsinsightfully and

convincingly.

Response clearly and

accurately identifies and

explains comparisonsregarding consumer and

industrial markets.

Response is incomplete,

inadequate, or missing.

Pricing Strategies,

Question 2

Response describes the

relationship between

pricing and customersatisfaction cogently,

insightfully, and

convincingly and

provides three or more

product samples.

Response clearly and

accurately describes the

relationship betweenpricing and customer

satisfaction with at least

three product samples.

Response is incomplete,

inadequate, or missing.

04 lesson pricing strategies 1

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