Principles of marketing/PMKT101/Optimizing the Marketing Mix/Pricing

Money

“	Many people will stand in line for something free, even if it takes hours. When Chick-fil-A opens new locations, they offer the first one hundred customers a free meal every week for a year. Customers camp out to get the free meals. When KFC introduced its grilled chicken, they put coupons good for a free piece of chicken in many Sunday newspaper magazines. So how do sellers make any money if they always offer goods and services on sale or for a special deal? Many sellers give customers something for free hoping they’ll buy other products, but a careful balance is needed to make sure a profit is made. Are free products a good pricing strategy?	”
—Tanner and Raymond, Chapter 15

More about pricing

1. Read the following:
   • Chapter 15: Price, the Only Revenue-Generator from Principles of Marketing 2.0 by Tanner and Raymond
2. This chapter provides a thorough treatment of the important concept of price. It discusses the process organizations must consider, to effectively price their offerings, including:
   • identifying pricing objectives;
   • accounting for the factors that affect pricing decisions, and;
   • implementing a pricing strategy.
3. Pay close attention to concepts of pricing basics, value pricing, target pricing, price sensitivity and elasticity, dynamic pricing, rack pricing, and loss leaders.
4. Post a WEnote about the importance of pricing, and look at what others have said on the Course Feed page. For example:
   • "Pricing as a revenue generator is important because it ..."

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