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