Starter Question for discussion - What tools do businesses use to help convince potential customers to purchase their product?

Lesson Objectives All students will understand The importance of the Pricing to businesses Most students will understand The factors that determine pricing decisions Some students will understand How changes in price can reflect social trends

The Marketing Mix The marketing mix is a set of tools that can be used to ensure that: the right product is sold at the right price in the right place and is promoted in the right way These 4 P’s make up the marketing mix.

Pricing strategies Penetration Initial low price to break into the market Skimming Initial high price to take advantage of initial high demand Cost-plus Based on cost of producing the product Competition-based Based on what competitors are charging Predatory Setting low price, that may not even cover cost of production, to force competitors out of business Psychological E.g. £9.99 instead of £10

Factors that determine the pricing strategy Does the product have a USP Price Elasticity of Demand of the product Level of competition Strength of Brand Stage in Product Life Cycle The cost of making the product The need to make a profit on the item

Changes in pricing to reflect social trends In recent years some markets have drifted away from having one stable price. Online sales, comparison websites, social media have all contributed to this. E.g. it would be difficult for Travelodge to have one set price for a double room in their hotels, why is this?

Task Research examples of the Pricing Strategies that are being employed to 2 products (markets with varying levels of competition) – make a judgement as to which is more effective and why - work in pairs and present your findings

Pricing Presentation – Mark Scheme Grade Boundary Evidence of Research Applied theory Evaluation Quality of presentation 8-10 Extensive evidence of research for 2 products Extensively for all Justified evaluation throughout Well-rehearsed, eye contact, professional 4-7 Evidence of research for both products Yes Some justified evaluation Rehearsed and coherent 0-3 Some limited research for both products Some elements limited No evaluation Poor

Plenary Presentations – do the presentations show evidence of our lesson objectives being met?