ADMAS UNIVERSITY

FACULTY OF BUSINESS
DEPARTMENT OF MARKETING MANAGEMENT
COURSE OUTLINE
Course Code MMgt 2022
Course Title Pricing Policy and Strategy
Degree Program BA Degree in Marketing Management
Credit Hours 3
Course Description Prices are often the means through which values of a good or services
are communicated. This course deals with pricing objectives, pricing
strategy, factors which determine price, pricing techniques, pricing
new and industrial products.
Course Objective At the end of the course learners will be able to:
 Identify pricing techniques
 Investigate competitor's price, then decide whether to keep
price in line or undercut competition's price
 Decide on price structure
 Apply market segmentation strategies
 Analyze factors affecting price determination
 Apply various techniques for new products
Prerequisites Principles of Marketing
Delivery Time 2nd year, Semester 2
Status of the Course Core
Teaching and Lecture, Case study, group discussions, presentation, reflections
Learning Methods reading and writing assignments,

CHAPTER 1 - PRICING OBJECTIVES (6 Hours)

1.1.Partial cost recovery
1.2.Profit Maximizing
1.3.Revenue Maximization
1.4.Quality leadership
1.5.Quantity maximization
1.6.Statuesque-oriented
1.7.Survival
1.8.Market promotion in anticipation expansion
CHAPTER 2 - PRICING STRATEGY IN DIFFERENT MARKETS (8 Hours)
 2.1.Monopoly
2.2.Oligopoly
2.3.Free market
CHAPTER 3 - DEVELOPING PRICING STRATEGIES AND PROGRAMS (6 Hours)
3.1.Understanding Pricing
3.1.1. A Changing Pricing Environment
3.1.2. How Companies Price
3.1.3. Consumer Psychology and Pricing
3.2.Setting the Price
3.2.1. Step 1 Selecting the Pricing Objective
3.2.2. Step 2 Determining Demand
3.2.3. Step 3 Estimating Costs
3.2.4. Step 4 Analyzing Competitors' Costs, Prices, and Offers
3.2.5. Step 5 Selecting a Pricing Method
3.2.6. Step 6 Selecting the Final Price
CHAPTER 4 - FACTORS WHICH DETERMINE PRICE (8 Hours)
4.1.Internal Factors
4.1.1. Organizational factor
4.1.2. Marketing Mix
4.1.3. Product differentiation
4.1.4. Cost of the product
4.1.5. Objective of the firm
4.2.External Factors
4.2.1. Demand
4.2.2. Competition
4.2.3. Channel members
4.2.4. Economic Condition
4.2.5. Buyers
4.2.6. Government
4.3.Environmental analysis
CHAPTER 4 - PRICING APPROACHES (6 Hours)
4.1.Cost based Approach
 4.1.1. Cost Plus/ Mark up Pricing
4.1.2. Break even pricing
4.2.Buyer-based pricing/Perceived Value Pricing
4.3.Competition based pricing
4.3.1. Price above the competition
4.3.2. Price below the competition
4.3.3. Price in line with the competition (going-rate pricing)
CHAPTER 5 –PRICING POLICIES AND STRATEGIES (8 Hours)
5.1 New Product Pricing
5.1.1 Penetration Pricing
5.1.2 Skimming Pricing
5.2 Product Mix Pricing strategy
5.2.1 Price lining
5.2.2 Optional product Pricing
5.2.3 Captive product pricing
5.2.4 By-product pricing
5.2.5 Product bundle pricing
CHAPTER 6 – PRICE ADJUSTMENT STRATEGIES (6 Hours)

6.1 Discount pricing and allowances

6.1.1 Cash discount
6.1.2 Quantity discount
6.1.3 Functional discount
6.1.4 Seasonal discount
6.1.5 Allowances
6.2 Discrimination Pricing
6.2.1 Customer discrimination
6.2.2 Product discrimination
6.2.3 Location discrimination
6.2.4 Time discrimination
6.3 Psychological Pricing
6.3.1 Prestige pricing
 6.3.2 Everyday low prices (EDLP)
6.3.3 Multiple-unit pricing
6.3.4 Odd pricing
6.4 Promotional Pricing
6.4.1 Loss leader pricing
6.4.2 Special-event pricing

Assessment Methods Points

Test 1 10
Test 2 10
Quiz 5
Assignment (group) 10
Presentation 5
Class activity and Participation 10
Final Exam 50
Total Points 100

Text:
 Assegedech Woldelul, Managing Prices,CBM publishers
References:
 Kent B. Monroe,Pricing: making profitable decisions,3rd ed. 2002, Mcgraw-Hill, USA
 Roger Lewis and Roger Trevilt, Advanced business, 2nd ed. UK, Stanley Thrones Ltd,
1994.
 Evly B. Howard, Marketing made simple, London, A Howard & Wyndham Comp, 1979.