Part 1. Pricing Strategy: Module 1 Introduction: Pricing as an Element of the Marketing Mix
Summary
TLDRIn 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
- π The course is about 'Pricing Strategy', aimed to help students understand the complex tasks involved in strategic pricing.
- π’ Instructor Michael Victor A. Gonzalez is a licensed real estate broker and an agriculturist, bringing a unique perspective to the subject.
- π° The module emphasizes the importance of strategic pricing for business profitability and sustainability.
- π It guides students to understand the value proposition and how to create and communicate it effectively for sustainable growth.
- π The course will educate on flawed pricing paradigms and provide better strategies to avoid unprofitable decisions.
- π Making sales more profitably is highlighted as a key to achieving sustainable growth in revenue.
- ποΈ The principles of strategic pricing and objectives for sustainable profitability are discussed.
- π€ The role of creating and communicating value to customers in the marketplace is explored, with a focus on real-world applications.
- π A case study will be discussed to illustrate how good value can lead to extraordinary success.
- π£οΈ The importance of effective price and value communication at the right point in the buying process is underscored.
- π€ 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.
Outlines
π Introduction to Strategic Pricing
In the first paragraph, Michael Victor A. Gonzalez introduces himself as the instructor for the 'Pricing Strategy' module at Gimera State College's College of Business and Management. He outlines the importance of strategic pricing in achieving profitability and sustainability in business. The module aims to help students understand the value proposition and how to communicate it effectively to deliver superior value at a lower cost for sustainable growth. It also includes recognizing flawed pricing paradigms, understanding the principles of strategic pricing, and the objectives needed for sustainable profitability. A case study on value creation leading to success is mentioned, emphasizing the importance of price and value communication in the marketing process. The paragraph concludes with the anticipation of identifying potential conflicts in business and discussing mitigation techniques.
π Analyzing the Market and Pricing Strategy
The second paragraph delves into the marketing approach to pricing, emphasizing the analysis of the market and competition. It discusses the importance of understanding how competitors price their items and defining the marketing mix. The paragraph also covers determining market position, budgeting, and execution planning. The focus is on understanding customers and identifying potential ones, with an overview of how marketing principles guide effective price setting. The concept of commercial exchange is explored, highlighting its voluntary nature and the benefits it brings to society. The paragraph also touches on the broader aspects of marketing beyond advertising and salesmanship, and the need for governmental regulation to protect customers and ensure fair business practices, especially in the context of online transactions during the pandemic.
π The Dynamics of Commercial Exchange in a Free Market Economy
The third paragraph discusses the dynamics of commercial exchange in a free market economy. It describes the voluntary nature of exchanges and how they can lead to mutual benefits for both buyers and sellers. The paragraph also addresses the limitations of choice and the potential dissatisfaction that can arise from limited options or product failures. The role of governmental regulation, such as the Department of Trade and Industry, is highlighted to protect consumers and ensure fair practices. The paragraph concludes by recognizing the entrepreneurial spirit and the pressures of choice in modern free market societies, emphasizing the importance of the commercial exchange at the heart of the economic system and its global adoption.
Mindmap
Keywords
π‘Pricing Strategy
π‘Value Proposition
π‘Sustainability
π‘Marketing Mix
π‘Commercial Exchange
π‘Profitability
π‘Agriculturist
π‘Flawed Paradigms
π‘Customer Needs
π‘Entrepreneurship
π‘Governmental Regulation
Highlights
Introduction to the instructor, Michael Victor A. Gonzalez, a licensed real estate broker and licensed agriculturist.
Course subject is Pricing Strategy, aimed at understanding strategic pricing in business.
Pricing is one of the four key elements in marketing, crucial for business profitability and sustainability.
Students will learn to create and communicate a superior value proposition for sustainable growth.
Education on recognizing flawed paradigms in pricing methods to avoid unprofitable decisions.
Importance of making sales more profitably for sustainable revenue growth discussed.
Explanation of the principles of strategic pricing and objectives for sustainable profitability.
Discussion on creating value in the marketplace and its impact on customer satisfaction.
Case study on the application of pricing strategies leading to extraordinary success.
The significance of effective price and value communication in the marketing process.
Identification of potential conflicts between stakeholders and techniques to mitigate them.
Lesson one focuses on pricing as an element of the marketing mix.
Understanding the voluntary nature of commercial exchange and its benefits for society.
Different terms used to refer to prices and what managers mean when discussing pricing.
The four categories of marketing activities known as the marketing mix.
The marketing concept and how it guides pricing activities.
The broader perspective of marketing beyond advertising and salesmanship.
The role of commercial exchange in facilitating transactions and its voluntary nature.
The importance of entrepreneurial spirit in the free market economic system.
The necessity of governmental regulation in a free market economy to protect consumers.
The impact of the pandemic on online marketing and customer satisfaction.
Conclusion and transition to the next topic: understanding what price is.
Transcripts
good day students welcome to gimera
state college
college of business and management my
name is michael victor
a gonzalez i'm a licensed real estate
broker
and i'm also a licensed agriculturist
major in agribusiness
i will be your instructor for this
subject
pricing strategy
this module will help the students to
better understand
and conceptualize the range of
interrelated tasks involved in
strategic pricing we begin
the module by describing the importance
of pricing
in four key elements in marketing
describing how strategic pricing is
vital in your business to attain
profitability
and sustainability
it will guide the students to better
understand
how a superior value proposition
and properly creating and communicating
it
will find its uh way
to deliver a superior value at lower
cost
that will lead to sustainable growth
it will also educate the students by
giving some examples
of flawed paradigms pricing method so
that they will
be able to recognize and understand
why they need not to follow them
identify the float paradigms pricing
attempts to enter a unprofitable
decision
and provide a better strategies to
follow
discuss why making sales
more profitably is the key in achieving
sustainable growth in revenue over a
long poll
explain what are the principles
strategic pricing is all about and what
are the objectives that needs to take
in order to attain or achieve
a sustainable profitability discuss
how a value being pursued in a
marketplace
how to create a good value to the
customers
discuss a case study that provides a
real application
on these strategies on how
a good value leads to extraordinary
success
explain why creating price and value
communication
to get the right message to the right
person
at the right point in the buying process
is the ultimate goal
for the marketers
so when you finish this module you
should be able to identify the potential
conflicts that arise leading firms
between supporters and managers and
between
and between subholders and bound holders
and discuss the techniques the firm
can use to mitigate this potential
conflicts
so our lesson one we will going to
discuss
the introduction to pricing as an
element
of the marketing mix
lesson outcomes it will identify the two
parties in a commercial exchange and
what is given
and received by each party explain the
voluntary nature of the commercial
exchange
related to its potential for creating
benefits for society
identify terms other than price that are
commonly used
who refer to the prices
explain what the manager is referring to
when speaking prices differs from what a
manager is referring to
when speaking to us
identify the four categories of
marketing activities
usually refer to as the marketing mix
explain the marketing concept and
analyze how the pricing activities
be guided by the marketing concept
the commercial exchange
anytime anything is sold there must be a
price involved
the focus of this lesson is to present
concepts
principles and techniques that provide
guidance to help a seller set the best
price
our study of how to sell the best prices
will take
the marketing approach so
in marketing strategy we will uh
analyze the market and also the analyze
we
also analyze the competition
so when you analyze the competition in
terms of pricing you also
look how other competitors
price their items
and also we are going to define yes the
marketing mix
determine the market position
marketing budgeting and also execution
planning
and and with that approach
um we need to then understand
customers and also identify the
potential customers
we will describe the business context
for pricing
and provide an overview of how the basic
principles of marketing can guide
effective price setting
although people often think of marketing
as synonymous
with advertising or salesmanship
it is actually much broader
marketing consists of full range of
activities
involved in facilitating commercial
exchange
and having all of these activities be
guided
by cons uh concern for customers
needs
the central idea here is that the
commercial exchange
this is where a seller provides a
product
to a buyer in return for something
exchange
usually an amount of money
the product could be something tangible
which is referred to as a rule or
the product would be the result of human
or mechanical effort which is
referred as a service
the buyer could be a consumer an
individual to purchase as a product
for his own use
or the buyer could be the business
business customer an individual or a
group
who purchases the product in order to
resell
or for other business purposes
one aspect that makes the commercial
exchange a very important idea
is that it describes an interaction
that is voluntary so it means
you are not being forced to do something
out of your goodwill
both the buyer and seller participate in
the exchange
voluntarily because the exchange will
lead them
both to be better off
both the parties to the exchange are
better off after the exchange
than before one could say that exchange
makes the world a just a little bit a
better place
there is a little more happiness after
the exchange than
before although there may be
only a tiny bit of increasing happiness
from anyone in commercial exchange
this little flash pressures can quickly
mop up
in a society where the distribution of
most
goods services is governed
by a free market economy every person
engage in numerous commercial exchange
every day each little increase
is a pleasure that commercial exchange
brings in and then multiply
in all of this it must be recognized
that
there are degrees of voluntariness
and that choices may be so limited
for some buyers that they may not feel
much better
after an exchange so for example
[Music]
uh the only choices that you have is the
apple and the orange
but what you truly desire
is for example grapes
so for for that
exchange that is a very limited
options that you have you cannot truly
guarantee that
when you exchange your money for grapes
will truly satisfy you
also it is possible that a product
chase voluntary we could fail to perform
as expected
or that third party may be harmed
by an exchange so we cannot
[Music]
take it for granted some products
have some property defects so
product failure so they will always
uh yes
we cannot fully guaranteed that every
exchange
will be satisfying and most of this
time during this pandemic
people are buying through
online marketing and i
i've heard in news
that some transactions are are being
abused by this
sellers that are not in good faith that
and sometimes that leads to
customers dissatisfaction
these illustrate the need for some
governmental regulation
a free market economy cannot be entirely
free
so we have the dpi the department of
trade
and industry that governs
the regulation in protecting our
customers
and also helping our industry to
provide what is necessary to our
society nevertheless
in modern free market societies people
experience the pressures of choice and
are energized by the entrepreneurial
possibilities
so according to christopher the uh
plot here entrepreneurs
are people with dreams and ambitions
regardless of this position because of
that
they're willing to work with ideas
explore
possibilities and find the possible
in the impossible
the commercial exchange is at the heart
of the free
market economic system which as we have
seen in recent years has become more
and more widely adopted among the
various nations of the world
so that's all for now for this video
thank you for thank you for your time
and
our next topic we are going to discuss
what is price have a good day
Browse More Related Video
Pricing a Product explained by Professor Ken
This Will Make You More Profit Than 99% Of Businesses
Cupcake economics 2 | Inflation | Finance & Capital Markets | Khan Academy
04 How to estimate Economic Value PRICING STRATEGY
How To Charge For Design & Creative Work (Full Sales Masterclass & Roleplay)
Lecture 6: Pricing the service
5.0 / 5 (0 votes)