CHAPTER 20
Setting Prices
TEACHING RESOURCES QUICK REFERENCE GUIDE
Resource
Location
Purpose and Perspective
IRM, p. 424
Lecture Outline
IRM, p. 425
Discussion Starters
IRM, p. 433
Class Exercises
IRM, p. 435
Semester Project
IRM, p. 438
Answers to Developing Your Marketing Plan
IRM, p. 439
Answers to Discussion and Review Questions
IRM, p. 440
Comments on the Cases
IRM, p. 442
Video Case 20.1
IRM, p. 442
Case 20.2
IRM, p. 443
Strategic Case 8
IRM, p. 444
Examination Questions: Essay
Cognero
Examination Questions: Multiple-Choice
Cognero
Examination Questions: True-False
Cognero
PowerPoint Slides
Instructor’s website
Note: Additional resources may be found on the accompanying student and instructor websites at
www.cengagebrain.com.
PURPOSE AND PERSPECTIVE
In this chapter, we examine six stages of a process that marketers can use when setting prices. Figure 20.1
illustrates these stages. Stage 1 is the development of a pricing objective that is compatible with the
organization’s overall marketing objectives. Stage 2 entails assessing the target market’s evaluation of
price. Stage 3 involves evaluating competitors’ prices, which helps determine the role of price in the
marketing strategy. Stage 4 requires choosing a basis for setting prices. Stage 5 is the selection of a
pricing strategy, or the guidelines for using price in the marketing mix. Stage 6, determining the final
price, depends on environmental forces and marketers’ understanding and use of a systematic approach to
establishing prices. These stages are guidelines that provide a logical sequence for establishing prices, not
rigid steps that must be followed in a particular order.
