Product and Pricing Strategies

Developing Marketing Strategies
in satisfying Customers
PRODUCT AND PRICING STRATEGIES
What this module all about?

Good day student! How’s your day? This module can help you in matters of
business or even for personal use. In this module you will encounter things that you do not
know. Our topic is all about Product and pricing strategies. This module will be a new
experience for you. I hope you will learn from this module.
What you are expected to learn?
In this module you are expected to:
1. Describe the importance of product and its classification.

2. Describe the categories of organizational product.
3. Be familiar with the product life cycle.
4. Learn the different pricing strategies.
How to learn from this module?

I’d like you to picture in your mind that you are a business man who handles the product
and pricing in the business firm. Are you interested to be a business man someday? Well, all
you have to do is do the activities in each lesson and answer the self-check exercises honestly.
Before we proceed to the lesson you are going to take the pretest first. This test is particularly
prepared to determine your previous knowledge of the lessons you are about to study.
Good luck!!!
Pre-test
I. TRUE OR FALSE
Read each item carefully. Write TRUE if the statement is correct and write FALSE if the
statement is wrong.
________ 1. Specialty products are brands that the consumer will seek, regardless of location or
price.
________ 2. In product life cycle the stage of introduction it is where the sales and profit
deteriorate.
________ 3. Marketing mix is the four key elements of marketing strategy.

________ 4. Product, price, pre-screening and promotion are the four Ps.
________ 5. Price discrimination is charging the same price for the same good/service in
different markets.
II. IDENTIFICATION
Identify the correct answer and write it your answer on the blank.
____________1. A thing produced by or resulting from a process, as a natural, social, or

historical one.
____________2. Products primarily sold to consumer.
____________3. Rapid jump in sales.
____________4. Is the pricing technique of setting a relatively low initial entry price.
____________5. High value goods priced according to what consumers THINK should be the
price.
Lesson 1
Product and Pricing Strategies
Definition of terms:
Product-a thing produced by or resulting from a process, as a natural, social, or historical one.
Price-means the pricing strategy you will use.
2 Categories of Product:
 Consumer products-products primarily sold to consumer.

 Organizational products-primary sold to companies are B2B.
Product Classification:
 Convenience products-bought frequently without great deliberation
 Shopping products-bought less frequently & requires some thought and comparison
 Specialty products-brands that the consumer will seek, regardless of location or price.
Product life cycle stage Description

· Product launched
Introduction · Heavy R&D efforts
· Small or no profit
· Rapid jump in sales
· Increased number of competitors
· Increased number of distributors
Growth · Pressure to introduce new features
· Marketing in this stage can eliminate small
competitors
· Bigger profits for survivors
· Longest stage in life cycle

· Market share is maximized
Maturity
· Growth is difficult
· Competition increases
· Sales and profits deteriorate
· Declines occur caused by changing demographics,
Decline
shifts in popular taste, product competition, or
advances in technology
 The marketing mix is the four key elements of marketing strategy: product, price,
distribution (place), and promotion - the four Ps.
Pricing Strategies
I have here some examples of pricing strategies.
Penetration Pricing-is the pricing technique of setting a relatively low initial entry price, often
lower than the eventual market price, to attract new customers.
Market Skimming-is a pricing strategy in which a marketer sets a relatively high price for

a product or service at first, then lowers the price over time.
Value pricing-It means that you base your prices on the value you deliver to customers. For
example, when a new technology has a very large success, you can charge high prices to the
customer. It is easy when you are in the introductory phase of the product life cycle.
Psychological pricing-is a marketing practice based on the theory that certain prices have
a psychological impact.
-Links with value pricing – high value goods priced according to what
consumers THINK should be the price
Price discrimination-exists when sales of identical goods or services are transacted at
different prices from the same provider.
Activity
Instruction: Divide the class to four groups with at least 5 members each.
You will classify the given products according to their product classification.
(Specialty products, Shopping products, Convenience products)
How did you find the activity? Was it interesting? I know it is difficult to remember all
the discussion we’ve made. Don’t worry. As you go along, you will gradually be familiar about
the product and pricing strategies.
Let’s see whether you have learned something from the discussion. Answer the self
check exercise that follows.
Self-check Exercise
Enumerate the following:
1-4 The Product life cycle
5-9 The Pricing Strategies
10 Give an example of organizational product.
Answer Keys:
I. True or False
Pre-test: 1. True
2. False
3. True
Self-check:
4. False
1. Introduction
5. False
2. Growth
3. Maturity
II. Identification
4. Decline
1. Product
5. Penetration Pricing
2. Consumer Product
6. Market Skimming
3. Growth
7. Value pricing
4. Penetration Pricing
8. Psychological pricing
5. Psychological Pricing
9. Price discrimination
10. Building or machineries
Checked by: Ms. Jasmin L. Magarao
REFERENCE:
http://www.freeworldacademy.com/
Republic of the Philippines

Polytechnic University of the Philippines
Quezon City
PRODUCT AND PRICING STRATEGIES
A module presented to the Bachelor in Business Teacher Education of

Polytechnic University of the Philippines,
Quezon City
In partial fulfillment of the requirements for the

Methods of Teaching
BTED 3043
Submitted to:
Professor Sheryl Morales
Instructor
Submitted by:
Hannah Grace Nenete S. FIlomeno
BBTE 3-1s

Product and Pricing Strategies

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Developing Marketing Strategies

What this module all about?

What you are expected to learn?

In this module you are expected to:

1. Describe the importance of product and its classification.

How to learn from this module?

________ 3. Marketing mix is the four key elements of marketing strategy.

____________1. A thing produced by or resulting from a process, as a natural, social, or

____________3. Rapid jump in sales.

____________4. Is the pricing technique of setting a relatively low initial entry price.

 Consumer products-products primarily sold to consumer.

Product life cycle stage Description

· Longest stage in life cycle

Market Skimming-is a pricing strategy in which a marketer sets a relatively high price for

Enumerate the following:

1-4 The Product life cycle

5-9 The Pricing Strategies

10 Give an example of organizational product.

Checked by: Ms. Jasmin L. Magarao

Republic of the Philippines

PRODUCT AND PRICING STRATEGIES

A module presented to the Bachelor in Business Teacher Education of

In partial fulfillment of the requirements for the

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