TOPIC:Topic 4: Marketing LESSON TITLE:The Marketing Mix (Price) LEARNING INTENTION: To understand the pricing strategies involved in the price component of the marketing mix. COMPETENCY FOCUS: Creativity: learners will develop skills in creativity and design by firstly looking at how promotion is used in business to help them to reach their goals and secondly, to design their own promotional campaign responding to a creative brief from the client. Reasoning: Learners will develop skills in reasoning as after providing advantages and disadvantages for the use of the promotional mix, you will be required to make a reasoned judgment. [IB Learner Profile Development: Innovator] Success Criteria By the end of the lesson, I can… 1) To identify 10 different pricing strategies 2) To explain each pricing strategy, using examples 3) Analyse the appropriateness of each strategy. SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development. CRITICAL THINKING KEY: Knowledge Application Analysis Evaluation

The Marketing Mix  Also known as the 4P’s (product)/7P’s (service)  Businesses must consider its marketing mix in order to market its products successfully  To meet customer’s wants/needs, marketers must create the right product, at the right time, at the right price, make it available at the right place and let customers know about it through promotion.

The Marketing Mix [

PRODUCT What is the product? Who are the potential customers? What are the features/benefits? Has the product got a ‘unique selling point’ (USP)? What makes the product appealing to customers? How is the product better than the competition?

PRICE Pricing Strategies  Price Skimming  Penetration Pricing  Price Leader  Destroyer Pricing  Price Discrimination  Psychological Pricing  Cost+ Pricing  Contribution Pricing  Loss Leaders (Economy Pricing) TASK: You will each be given a strategy and you will need to use your research skills to explain to your peers what each one involves.

PRICE Pricing Strategies  Price Skimming (charging higher price at first)  Penetration Pricing (Set a low price to gain a foothold in the market)  Price Leader (Leader in market, others follow)  Destroyer Pricing (Set really low price to eliminate competition from market)  Price Discrimination (charging different prices to different customers)  Psychological Pricing (£9.99)  Cost+ Pricing (‘bottom-line’ + extra)  Contribution Pricing (Contribution towards fixed costs)  Loss Leaders (Economy Pricing) (very low price to attract customers )

TASK You are the Marketing Director and Marketing Executive at Alton Towers. In pairs, you MUST construct a pricing strategy for Alton Towers.

EXAM TECHNIQUE Complete activity 27.2 on pg. 286