Course Title: Pricing Policies and Strategies

Course Code: MKTM 601

Credit Hours: 2

Course Description

This course deals with managing and setting pricing strategies for business enterprises. It will
incorporate major issues like Meaning and significance of pricing, Pricing objectives,
Factors affecting pricing decisions, Basic methods of determining price, Pricing procedure,
Pricing policies and strategies .
An analytic look at how profitable pricing strategies and decisions can be developed in
relation to the experience curve, different customer segments, new products, products
throughout their life cycle, product lines, the distribution channel, and promotion.
Moreover, this course deals with managing and setting pricing strategies for medium and
large enterprises, and micro and small enterprises including home based business. The major
topics subsumes in this course include: contribution of effective structuring to the process of
pricing, developing alternative pricing Strategy, rationale of setting pricing strategy.

Course Objectives

After learning this course students will be able to:

 provide an integrative framework for making pricing decisions.
 provide a systematic overview of the factors to be considered when setting price.
 understandhow pricing strategy alternatives can be developed and analysed
 Describe how different companies offering different products can set price with the
objective of making their business profitable.
 Explain the various pricing strategies and policies
 Determine appropriate pricing skills and knowledge for effective business
management

Course Contents

Chapter One: Effective pricing management

1.1 The role and definition price
1.2 Factors considered When Setting prices
1.3 Importance of price decision
1.4 Implications of current pricing decisions
 1.5 The three level of pricing management
1.6 New-Product Pricing Strategies
1.7 Product Mix Pricing Strategies
Chapter Two: The Economics Of Price Determination
2.1 Introduction to profit maximization strategies
2.2 Corporate and pricing objectives
2.3 Market structure
2.4 The laws of demand and supply
2.5 Price elasticity and consumers surplus
Chapter Three: Price change and adjustment
3.1 Price-Adjustment Strategies
3.2 Price changes
3.3 Initiating Price Changes
3.4 Responding to Price Changes
3.5 Public Policy and Pricing
3.6 Pricing within Channel Levels
3.7 Pricing across Channel Levels
Chapter Four: Pricing Practices That Endanger Profit
4.1 Introduction to reference prices
4.2 Order of presenting prices
4.3 Introductory pricing strategies and tactics
4.4 Price thresholds
Chapter Five: Customer Value Analysis
5.1 Introduction to value analysis management
5.2 Components of perceived acquisition value
5.3 The concept of benefits to customers
5.4 The five steps of value oriented pricing
5.5 Contingency value pricing
Chapter Six: Profitability analysis for pricing decisions, The role of cost in pricing
decisions
6.1 Cost fundamentals
6.2 Cost-Plus Pricing
6.3 Cost concepts and classifications
6.4 Elements of profitability
 6.5 Breakeven analysis
6.6 Profit analysis
Chapter Seven: Pricing Over The Product Life Cycle
7.1 Product life cycle – the conceptual model
7.2 Basic pricing decision
7.3 New product pricing
7.4 Pricing during different life cycle stage
7.5 Pricing of Multiple Product and Pricing Discrimination
Chapter Eight: Developing A Price Structure
8.1 An overview of various discount decisions
8.2Quantity discount structure
8.3 Cash discount and credit decisions
8.4 Geographical pricing decisions
Chapter Nine: Guideline For Better Pricing Decision
4.1 Four basic rules of pricing
4.2 Criteria for pricing decision
4.3 Adaptive pricing
4.4 Principle of pricing management
4.5 Providing a bases for effective pricing
Chapter Ten: Using Leverage For Developing Pricing Strategy
10.1 Operating leverage
10.2 Financial leverage
10.3 Combined leverage
10.4 Requirement for successful price reduction strategies
10.5 The effect of monetary sales mix
10.6 Pricing with scarce resources
Chapter Eleven: Price Dynamics
11.1 Measurement of own- and cross-price effects
11.2 Behavioral pricing
11.3. Consumer search and pricing
11.4. Structural models of pricing
11.5. Price cues and customer price knowledge
11.6. Pricing in services
11.7 Pricing Strategy for different business sizes
Learning Activities and Teaching Strategies

This course will be conducted on a discussion and lecture basis, with the participation of the
class. There will also be groups and each group of class members will prepare and critique
the term papers of a topic area.

In addition to the text book readings, the review of the research papers will form much of the
basis of classroomdiscussion. Therefore the class room time will consist of an open
discussion in which studentswill be encouraged to participate through contributing their
ideas.

Assessment Methods:

Article review……………………………………………………………………….15%
Termpaper…………………………………………………………………………...20%
Group work………………………………………………………………………….15%
Final Exam…………………………………………………………………………..50%
Total………………………………………………….……………………………100%
Textbook: Kent B Monroe, McGraw-Hill Irwin Pricing, Making Profitable References:
Decisions, 3rd Edition

References
Nagle, Thomas T., And Reed K. Holden. "The Strategy And Tactics Of Pricing: A Guide To
Profitable Decision Making." Prentice-Hall, Englewood Cliffs (1995).
Dolan, Robert. (1991). Strategic Marketing. Harvard Business School: New Delhi.
Kotler, Philip, Dipak, Jain & Suvit, Maesincee. ( 2002). Marketing Moves. Michigan.
Lamb, McDaniel H. (2004). Marketing Management. 6th ed. NewYork
Mescon, Michael, Courtland, Bovee and Thill, John. (1999). Business Today. Washington.
Salvatore, Dominick. (1993). Managerial Economics. New York: McGraw-Hill Book Co.
Schmit .Berned. (1999). Experiential Marketing. New York.