Topic 7 Activity: Understanding Pricing Decisions, UK

Setting the Right Price for Your Product

Step 1: Key Factors Affecting Pricing

Guiding Questions:

1.    What is the cost of your product or service?
2.    What unique value does your product/service offer to consumers?
3.    How does your product position itself in the market compared to competitors?

Step 2: Compare Prices with Competitors

Guiding Questions:
•    What are competitors charging for similar products?
•    How does your pricing compare in terms of value and market positioning?

Step 3: Choose Your Pricing Strategy

Guiding Questions:
1.    Which pricing strategy best suits your product and target consumers?
2.    How does your strategy align with your value proposition?

Note: Avoid relying solely on discount pricing. Highlight your product's unique value and justify your price accordingly.

Step 4: Think About Your Target Market

Guiding Questions:
1.    Who are your target consumers?
2.    What price range fits their budget and expectations?
3.    How does your pricing align with their values and purchasing behavior?

Step 5: Reflection for Presentation

Guiding Questions:
1.    How did you decide your price?
Example: "Based on costs, competitor analysis, and customer value perception."

2.    Why will your price work for your customers?
Example: "Our price reflects eco-friendliness and fits our target market's expectations."

3.    How does your price show value?
Example: "It highlights durability, sustainability, and affordability for the target audience."