This activity follows the discussion in a manager’s meeting for a firm that produces entertainment/game consoles and they are trying to decide whether to use a price penetration or price skimming strategy in the upcoming launch of their game console.
EXCLUSIVE MEMBER ACTIVITY
Price Penetration or Price Skimming? Review the Teaching Activity
In this activity, the student task is to determine what average prices will need to be charged by these small retailers so they end up making a good profit.
EXCLUSIVE MEMBER ACTIVITY
What Price Mark-up is Needed? Review the Teaching Activity
Students set prices using marginal analysis. This pricing approach looks for the maximum profit point, considering the firm’s cost structure and the likely sales at different price points.
EXCLUSIVE MEMBER ACTIVITY
Price Calculations: Marginal Analysis Review the Teaching Activity
Students use target profit pricing to determine how many units we will need to sell to both cover costs AND achieve a set profit.
EXCLUSIVE MEMBER ACTIVITY
Price Calculation: Target Profit Pricing Review the Teaching Activity
Work through two examples of using break-even analysis for pricing, to gain a better understanding of this approach.
EXCLUSIVE MEMBER ACTIVITY
Price Calculation: Breakeven Pricing Review the Teaching Activity
The task for this activity is to work through the two examples for cost-plus pricing for students to gain a better understanding of this method.
Price Calculation: Cost-plus Pricing Review the Teaching Activity
Pricing decisions will form a key part of the firm’s overall marketing strategy. In this activity, the task is to identify why the firm has adopted their particular pricing approach.
Pricing Objectives Review the Teaching Activity
In this exercise, students are required to review the top-level financials of a small chain of hamburger stores and suggest improvements to their marketing mix.
Improving the Marketing Mix Review the Teaching Activity