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

2. 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

3. 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.

4. 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

5. 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

6. 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?

7. 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

8. 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

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