Part 1. Pricing Strategy: Module 1 Introduction: Pricing as an Element of the Marketing Mix

Summary

In this educational video, Michael Victor A. Gonzalez introduces students to the strategic pricing module at Gimera State College's College of Business and Management. Gonzalez, a licensed real estate broker and agriculturist, emphasizes the importance of pricing as a key element in marketing for business profitability and sustainability. The module aims to enhance students' understanding of value propositions, flawed pricing paradigms, and the principles of strategic pricing. It also explores the role of marketing in price setting, the nature of commercial exchange, and the impact of entrepreneurship and regulation in a free market economy.

Takeaways

• 📚 The course is about 'Pricing Strategy', aimed to help students understand the complex tasks involved in strategic pricing.
• 🏢 Instructor Michael Victor A. Gonzalez is a licensed real estate broker and an agriculturist, bringing a unique perspective to the subject.
• 💰 The module emphasizes the importance of strategic pricing for business profitability and sustainability.
• 📈 It guides students to understand the value proposition and how to create and communicate it effectively for sustainable growth.
• 🔍 The course will educate on flawed pricing paradigms and provide better strategies to avoid unprofitable decisions.
• 📊 Making sales more profitably is highlighted as a key to achieving sustainable growth in revenue.
• 🛍️ The principles of strategic pricing and objectives for sustainable profitability are discussed.
• 🤝 The role of creating and communicating value to customers in the marketplace is explored, with a focus on real-world applications.
• 📈 A case study will be discussed to illustrate how good value can lead to extraordinary success.
• 🗣️ The importance of effective price and value communication at the right point in the buying process is underscored.
• 🤝 The potential conflicts between stakeholders and managers, and techniques to mitigate these conflicts, will be covered in the module.

Q & A

Who is the instructor for the 'Pricing Strategy' module?

The instructor for the 'Pricing Strategy' module is Michael Victor A. Gonzalez.

What are the dual professional qualifications of Michael Victor A. Gonzalez?

Michael Victor A. Gonzalez is a licensed real estate broker and a licensed agriculturist with a major in agribusiness.

What is the primary objective of the 'Pricing Strategy' module?

The primary objective of the 'Pricing Strategy' module is to help students understand and conceptualize the range of interrelated tasks involved in strategic pricing.

How does the module aim to guide students in achieving profitability and sustainability in business?

The module aims to guide students by teaching them how a superior value proposition, when properly created and communicated, can lead to delivering superior value at a lower cost, thus contributing to sustainable growth.

What are the flawed paradigms pricing methods that the module will educate students about?

The module will provide examples of flawed paradigms pricing methods so that students can recognize and understand why they should not follow them and instead identify better strategies.

What is the significance of making sales more profitably in achieving sustainable growth in revenue?

Making sales more profitably is key to achieving sustainable growth in revenue over a long period, as it ensures the business remains profitable and can continue to operate effectively.

What are the four categories of marketing activities usually referred to as the marketing mix?

The four categories of marketing activities usually referred to as the marketing mix are product, price, promotion, and place.

What is the marketing concept and how does it guide pricing activities?

The marketing concept is a business philosophy that focuses on customer needs and wants. It guides pricing activities by ensuring that prices are set in a way that meets customer expectations and creates value for them.

What is the importance of understanding customers and identifying potential customers in the context of pricing?

Understanding customers and identifying potential customers is crucial for effective price setting because it allows businesses to tailor their pricing strategies to meet the needs and expectations of their target market.

How does the script define the term 'commercial exchange'?

The script defines 'commercial exchange' as an interaction where a seller provides a product to a buyer in return for something, usually an amount of money, and both parties participate voluntarily because the exchange is expected to benefit them.

What role does the Department of Trade and Industry play in commercial exchanges?

The Department of Trade and Industry governs regulations that protect customers and ensure fair practices in commercial exchanges, helping to maintain trust and order in the marketplace.

What is the role of entrepreneurs in a free market economic system as described in the script?

Entrepreneurs in a free market economic system are individuals with dreams and ambitions who are willing to work with ideas, explore possibilities, and find opportunities, even in seemingly impossible situations.