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9.0 Pricing
by Brooke Zagula
Harnett Central High School
Angier, North Carolina


Section I. “C” Layer: 75 points MAX.  You must get 70 points to move to section II.

1.  Listen to lecture and take notes.  5 pts/day   1     2     3
2.  Make 20 flash cards using the 9.0 Key Terms (see me for this list).  15 pts.
3.  Pricing Policies & Strategies Vocabulary Worksheet  10 pts.
4.  The Price Strategy Worksheet 10 pts.
5.  Read and take notes on the following pages: pg 485-495 Marketing and pg 189-195 Small Business Book  15 pts
6.  Find 8 pictures of products with prices illustrating 8 different types of pricing policies in magazines.  Create a poster using these 8 types of pricing.  Be sure to label each type. 15 pts.
7.  Write a creative song using 15 Key Terms (see me for the list). Your song must be SUNG not spoken in order to receive any credit!  20 pts.
8.   Create three commercials with ONE partner.  Each commercial must use different pricing policy.  These will be presented to the class.  15 pts.

Section II. “B” Layer:  Choose one of the following activities worth 15-20 pts.

1. Choose a product and conduct an informal survey of at least ten people.  Ask them how much they would pay for the product.  Also ask them how much is too much to pay for the product and why.  Write a 1 page report that describes how your ten people perceived the price and value of your product.  15 pts
2.  Look through the newspaper to find 5 products on sale. Write a 1 page paper on types of pricing techniques marketers are using in the advertisements.  Attach your newspaper examples to your paper. 15 pts.
3.  Research the different ways business present markdowns to consumers.  Some run sales and advertise those sales in newspapers and direct mail pieces.  Others use coupons and rebates.  Compare the methods, language, and calculations used to demonstrate the savings a consumer is getting with these markdowns.  Contrast those consumer markdown methods with the types of discounts manufacturers and distributors offer retailer (cash discount, trade discount, quantity   discount, promotional discount, and seasonal discount). Report your findings in an oral presentation to the class, using presentation software. 20 pts.
4.  Set up a spreadsheet that will automatically calculate 20 percent, 30 percent, and 50 percent   discounts during special promotions.  Assume this will be input into the sales terminal so salespeople will not have to do the calculations in their heads. 15 pts.
5. Research the Federal Trade Commission’s guidelines for advertising prices.  Using presentation software, prepare a summary of the rules and their effects on manufacturers.  20 pts

Section III.  “A” Layer: Choose one of the following

1. You are a product manger for Delectable Delights candy company.  The cost to make and market a one-pound tin of Delectable Delights is $4, and the manufacturer hopes to make at least 25 percent profit on the product.  Wholesalers and retailers both use a 40% markup but are happy when it is higher.  Competitors have suggested retail prices between $8.99 and $12.99 per pound.  You need to establish the suggested retail price for the product.  Use a word processing program to write a memo to your boss exploring your decision.  Tell if you are using skimming or penetration pricing, and odd or even pricing.  Include the math calculations and prices for the wholesalers. 20 pts.
2. The student council purchased 300 tee-shirts at $2.50 each as a fund raiser.  There are 100 shirts each in three different styles (popular, average, not popular).  You need to decided the suggested price for the tee shirts that will generate at least $700.  Decide what psychological pricing techniques would be most appropriate.  Anticipate how your plan would change if you knew 50 shirts would not sell at all.  Use a spreadsheet program to generate possible prices and profits.  Using a word processing program to prepare a report with your final pricing plan and rationale. 20 pts.
3. Pricing Memo Activity (see me for the instructions) 20pts.

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