2.11 Product and Price Planning
Advertising and Sales Promotion
Marketing
Lesson Plan
Performance Objective
Students will
Specific Objective
• compare and contrast pricing policies
• develop a sample credit policy that could be a useful advertising marketing strategy
• analyze the price of an advertising marketing product
• describe stages of new-product planning
• define product mix
• identify stages of the product life cycle for new or existing advertising marketing plans
Terms
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Product – good or service produced and sold to consumers or other businesses
Product mix – number of individual products produced or sold by an organization
Product line - A group of related products manufactured by a single company
Brand - A type of product manufactured by a company under a particular name
Price skimming - pricing strategy by which a firm charges the highest initial price that customers will
pay and as the demand of the first customers is satisfied, the firm lowers the price to attract another,
more price-sensitive segment.
Penetration pricing - the practice of offering a low price for a new product or service during its initial
offering in order to attract customers away from competitors
Markdown – a reduction in price
Price competition - intense competition in which competitors cut retail prices to gain business
Non-price competition - a form of competition in which two or more producers use such factors as
packaging, delivery, or customer service rather than price to increase demand for their products
Price equilibrium –the price at which the quantity of a product is equal to the quantity of the product
in demand.
Consumer credit – financing made available by retailers to assist consumers in making purchases
Time
When taught as written, this lesson should take approximately two days to teach.
Preparation
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1
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result
in the elimination of any or all of the TEKS listed.
130.342. I Knowledge and Skills
(16) The student knows pricing policies, objectives, and strategies
(a) compare and contrast pricing policies
(b) develop a sample credit policy that could be a useful advertising marketing strategy
(c) analyze the price of an advertising marketing product
(17) The student knows the elements and process of product planning
(a) describe stages of new-product planning
(b) define product mix
(c) identify stages of the product life cycle for new or existing advertising marketing plans
Interdisciplinary Correlations:
English-English I
• 110.31(b)(1). Reading/Vocabulary Development. Students understand new vocabulary and use it
when reading and writing.
• 110.3(b)(11). Reading/Comprehension of informational text/procedural texts. Students understand
how to glean and use information in procedural texts and documents.
Math-Algebra I
• 111.32(b)(1)(C). Interpret and make decisions, predictions, and critical judgments from functional
relationships.
Social Studies-World Geography
113.34I(20)(A) Describe the impact of new technologies, new markets, and revised perceptions of
resources.
Occupational Correlation (O*Net – www.onetonline.org/):
Job Title: Marketing Manager
O*Net Number: 11-2021.00
Reported Job Titles: Marketing Director, Vice President of Marketing, Business Development Manager,
Marketing Coordinator
Tasks:
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Formulate, direct and coordinate marketing activities and policies to promote products and services,
working with advertising and promotion managers.
•
Identify, develop, or evaluate marketing strategy, based on knowledge of establishment objectives,
market characteristics, and cost and markup factors.
•
Direct the hiring, training, or performance evaluations of marketing or sales staff and oversee their
daily activities.
•
Evaluate the financial aspects of product development, such as budgets, expenditures, research and
development appropriations, or return-on-investment and profit-loss projections.
•
Develop pricing strategies, balancing firm objectives and customer satisfaction.
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2
•
Compile lists describing product or service offerings.
•
Initiate market research studies or analyze their findings.
•
Use sales forecasting or strategic planning to ensure the sale and profitability of products, lines, or
services, analyzing business developments and monitoring market trends.
•
Coordinate or participate in promotional activities or trade shows, working with developers,
advertisers, or production managers, to market products or services.
•
Consult with buying personnel to gain advice regarding the types of products or services expected to
be in demand.
Soft Skills: Speaking, Active Listening, Critical Thinking, Judgment and Decision Making, Social Perception
Accommodations for Learning Differences
It is important that lessons accommodate the needs of every learner. These lessons may be modified to
accommodate your students with learning differences by referring to the files found on the Special
Populations page of this website (cte.unt.edu).
Preparation
• Review and familiarize yourself with the terminology,
• Have materials ready prior to the start of the lesson.
References:
Online
Onetonline.org
sba.gov
Instructional Aids
• Textbook
• Lesson Presentation
• Instructor Computer/Projection Unit
• Online Websites
Introduction
The main purposes of this lesson is to help students understand
• pricing policies
• sample credit policies that could be a useful advertising marketing strategy
• price of an advertising marketing product
• stages of new-product planning
• product mix
• stages of the product life cycle for new or existing advertising marketing plans
Ask students if they have purchased a new product and a better one came out a few months later.
Copyright © Texas Education Agency, 2013. All rights reserved.
3
Ask students if they question why a company continually changes products.
MI
Outline
I.
II.
Terms
a. Product
b. Product mix
c. Product line
d. Brand
e. Price skimming
f. Penetration pricing
g. Markdown
h. Price competition
i. Non-price competition
j. Price equilibrium
k. Consumer credit
Notes
Use presentation as visual aide
Have students write vocabulary
terms and meanings
New Products
a. Meeting a need
b. Improving a product
c. Expand markets
Stages of Product Development
a. Generate ideas
b. Idea screening
c. Concept development & testing
d. Marketing strategy
e. Business analysis
f. Product development
g. Test marketing
h. Commercialization
Explain the need for developing
new products.
IV.
Product Mix
a. Product Levels
i. Basic product
ii. enhanced product
iii. extended product
b. Components
i. product line
ii. package and labeling
iii. brand
Discuss the elements of the
product mix and how it increases
market potential and overall
sales.
V.
Product Life Cycle
a. Introduction Stage
b. Growth Stage
c. Maturity Stage
d. Decline Stage
Review the stages of product life
cycle and how it impacts new
product development.
III.
Discuss the stages of product
development and give examples
of how each affecting the
marketing of the product
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4
VI.
Pricing Purpose
a. Maximize profit
b. Return on Investment
c. Increase sales
d. Image
Identify the purpose for various
pricing strategies
VII.
Pricing Strategies
a. Life Cycle Pricing
b. Competition Pricing
c. Supply and Demand Pricing
d. Consumer Credit Offering
Consumer Credit
a. Increase sales
b. Marketing strategy
c. Credit policy
Independent Practice
a. Select a new product
b. Determine the ideal pricing strategy for the
product
c. Write an explanation for the choice
d. Identify how the pricing strategy will increase
sales
Discuss the pricing strategies and
the purpose of using each kind
VIII.
IX.
Review purpose of consumer
credit and identify elements of a
credit policy
Allow students to work
independently for about 20
minutes and then share with a
neighbor.
Multiple Intelligences Guide
Existenti
alist
Interpers
onal
Intrapers
onal
Kinesthe
tic/
Bodily
Logical/
Mathema
tical
Musical/Rhyt
hmic
Natura
list
Verbal/Ling
uistic
Visual/Sp
atial
Application
Guided Practice
Students will work individually to reflect on a recent sales process interaction in a retail store. The student will
evaluate the outcome and make suggestions for improvement. Students will pair to discuss their solutions and
brainstorm further options.
Independent Practice
Consumer Credit Policy
Students will develop a consumer credit policy for a retail business and present it to the president of the
company.
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1. Research three current credit policies to identify important elements.
2. Identify the essentials to include in your credit policy
3. The credit policy must include:
a. Who to extend credit to
b. Payment guidelines
c. Billing practices
d. Collection process
4. Create a brochure to market the consumer credit offering to customers
5. Develop a visual to present information to the president of the company
Summary
Review
• What is a credit policy?
• What is the purpose of pricing?
• What are the stages of product development?
Evaluation
Informal Assessment
• Student participation throughout the discussion process and contribution to the guided practice
activity. Teacher will observe students by walking the classroom during each activity.
Formal Assessment
Students will be evaluated on their Selling Process Project using the Assigned Rubric.
Enrichment
Extension
Integrate math skills: provide students with a list of prices and discounts to calculate markdown.
Copyright © Texas Education Agency, 2013. All rights reserved.
6
2.11 Product and Price Planning
Advertising and Sales Promotion
Marketing
Consumer Credit Policy
Students will develop a consumer credit policy for a retail business and present it to the president of the
company.
1. Research three current credit policies to identify important elements.
2. Identify the essentials to include in your credit policy
3. The credit policy must include:
a. Who to extend credit to
b. Payment guidelines
c. Billing practices
d. Collection process
4. Create a brochure to market the consumer credit offering to customers
5. Develop a visual to present information to the president of the company
Copyright © Texas Education Agency, 2013. All rights reserved.
7
2.11 Product and Price Planning
Advertising and Sales Promotion
Marketing
Rubric
Categories
Content
Preparedness
Enthusiasm
20
15
10
Student is
Student shares
Student is missing
knowledgeable and
information
one or two
includes all
required in
elements in
information plus
presentation
presentation
additional content in
presentation
Student is prepared
Student seems
Student is
and has rehearsed prepared but should
somewhat
extensively
rehearse more
prepared but is
lacking rehearsal
Facial expressions
Facial expressions
Facial expressions
and body language
and body language
and body
show interest and
sometime show
language are used
enthusiasm about
interest
to try to generate
the topic
enthusiasm
Speaking, eye
contact, and
posture
Speaks clearly,
stands straight and
makes eye contact
with audience 100%
of presentation
Speaks clearly,
stands straight and
makes eye contact
with audience 90%
of presentation
Visual
Attractive and well
designed visual with
all required
information
Organized Visual
with all required
information
Speaks clearly,
stands straight
and makes eye
contact with
audience 80% of
presentation
Visual with all
information but
lacks organization
Total Points: ________________
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8
5 or less
Student is missing
multiple elements
of content and is
lacking knowledge
Student is not
prepared
Very little used of
facial expressions
or body language.
Did not generate
much interest in
topic
Mumbles, slouches
and does not look
at the audience
throughout the
presentation
Visual with partial
information