Marketing I Curriculum Guide

Pricing Standard 4

Pricing Pricing – Determine how much to charge for goods and services in order to make a profit Pricing decisions are based on costs and one what competitors charge for the same product or service. To determine price, marketers must also determine how much customers are willing to pay. -Marketing Essentials, 2012

Break-even Point Break Even Point – the point at which sales revenue equals the costs and expenses of making and distributing a product. After this point is reached, businesses begin to make a profit on the product. -Marketing Essentials, 2012

Supply & Demand Supply – The amount of goods producers are willing to make and sell. Demand – The amount of goods consumers are willing and able to buy.

Supply & Demand Graph

Economic Laws Law of Demand – As the price of a good or service increases, the quantity demanded will decrease. Law of Supply – As the price of a good or service increases, the quantity supplied will increase.

Business Profit There are many factors that affect a business’s profits. A few examples are listed below: Revenue Expenses Gross Margin Demand for goods State of the economy Competition

Competition Competition – A business relation in which parties compete to gain customers. -Marketing Essentials, 2012