Bellringer
List a few products that you have bought.
What price did you pay?
Principles of Marketing
Mrs. Sorrell
Price is Part of the
Marketing Mix
Product
Place
Target
Market
Promotion
Price
Price is …
The amount of money requested or exchanged for a
product
Usually stated on the tag
Types of Prices
List price—catalog, tag,
or price list
Market price—actual
price customer pays
MSRP—retailers do not
have to use
Synonyms
Tip
Tuition
Admission
Donation
Interest
Fee
Fare
Can you name others?
Factors that Affect Price
Company goals
Low prices
Luxury
Expenses
Cost of goods
Operating expenses
Competition
Price
Nonprice
Economic conditions
Government regulations
Prevent monopolies
Promote fair competition
Other marketing mix variables Product life cycle
Product, Place, and Promotion
Customer response**
Supply and demand
Question
**Have you ever questioned
the quality of a product
because of its low price?
Assignment
Research the following Laws that Regulate Pricing
Sherman Antitrust Act (1890)
Clayton Antitrust Act (1914)
Robinson-Patman Act (1936)
Wheeler Lea Act (1938)
Unit Pricing Laws
Minimum Price Laws
Laws That Regulate Pricing
Law
What it Regulates
When it Might be Used
Product Life Cycle
Product introduced—price is very high
Usually only one company making the product
Growth phase—many competitors enter the market,
and the price of a high-priced new product usually
falls
Maturity phase—Sales slow down because more
companies start to produce the product, profits
decrease
Decline phase—Product class usually dies due to low
growth rate in sales
Vocabulary
Price-fixing
Price Discrimination
Elastic demand—demand that changes price
Marginal utility—additional satisfaction you get
when you use an additional unit of the same product
Law of diminishing marginal utility—as a consumer
consumes more units of the same product, the
marginal utility from each unit goes down
Inelastic demand—demand that is not affected by
price
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