“CONSEJO PROVINCIAL DE PICHINCHA”

TECHNICAL ENGLISH
SECOND TERM
2023- 2024
IDENTIFY NEW VOCABULARY

THE MARKETING MIX – PRICE

Price is the amount of money that your

customers have to pay in exchange for
your product or service. Determining the
right price for your product can be a bit
tricky. A common strategy for beginning
small businesses is creating a bargain
pricing impression by pricing their product lower than their competitors. Your pricing strategy
should reflect your product’s positioning in the market and the resulting price should cover the
cost per item and the profit margin. The amount should not project your business as timid or
greedy. A business may set pricing objectives aimed at maximizing sales, increasing profits,
discouraging competition, attracting customers, or maintaining an image

Determine a price for a product

Once pricing objectives have been determined, the next step is to
determine the possible prices for products. There will usually be
more than one price that can be charged for a product. Pricing may
be based on demand, cost, or the amount of competition.

 Demand-based pricing: Pricing that is determined by

how much customers are willing to pay for a product or service Potential customers are surveyed
to find out what they would be willing to pay for the product. The highest price identified is the
maximum price that can be charged.
 Cost-based pricing is determined by using the wholesale cost of an item as the basis for the price
charged.

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  Competition-based pricing. is determined by considering what competitors charge for the same
good or service

Price a service
When setting the price for a service, it is important to consider not only the
cost of any items used in providing the service, but also the amount of time
and anything that is included with the service.

 Time-based pricing. The price to charge for services can be

determined by the amount of time it takes to complete the service.
 Bundling. Services can be bundled, or combined under one price,
rather than making the customer pay for each individual part of the service.

 MAKE A MIND MAP WITH THE INFORMATIO GIVEN ABOVE

MARKETING MIX PRICE

PRICING STRATEGY

DETERMING A PRICE
FOR A PRODUCT

PRICE A SERVICE

 READING THE INFORMATION GIVEN ABOUT PRICING STRATEGY IDENTIFY THE FOLLOWING
SENTENCES. THICK THE CORRECT ONES (√) CROSS THE WRONG ONES. (X) AND CORRECT THEM

1. Price is the amount of products that your customers have to pay

2. Price is an exchange of money for your product or service.
3. A usual strategy for beginning small businesses is by pricing their product lower than their
competitors.
4.
5. Your pricing strategy don’t have to reflect your product’s positioning in the market
6. The amount should not project your business as timid or avaricious.
7. Before determine prancing objectives the first step is to determine the possible prices for
products.
8. There will be just one price charged for a product.
9. Setting the price for a service, it is important to consider the amount of time.
10. The price to charge for services can be determined by the amount of time it takes to complete the
service.

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11. Services cannot be combined under one price, making the customer pay for any part of the
service.

 REWRITE THE FALSE SENTENCES ABOVE

 READ THE FOLLOWING WORDS AND MATCH THEM WITH THE CORRECONDING
MEANING.

1. Cost plus pricing G a. Set a price based on customers opinion

2. Market based price b. Setting the price based on consumers

expectation

3. Penetration pricing c. Set a price that is similar to competitor’s

price

4. Skimming price d. Set the price based on what competitors

are charging

5. Psychological pricing e. Set a high price for a new product

6. Value based price f. Set a high price so customers think the

product is of high quality

7. Competitive pricing g. Set the price by adding a mark up

8. Premium pricing h. Set a low starting price for a new product

and increase as sales grow

This - That These - Those

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Ask and give price for the items given above.

Example :

How much is this book ? It’s $120,00 (one hundred twenty)