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Unit 03 Lesson 02 &03

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6 views6 pages

Unit 03 Lesson 02 &03

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Minos
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© © All Rights Reserved
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Lesson: 02 Prices

Pricing is an integral part of marketing. Consumers decide which products to


purchase based on the price, whether it is a low price decision or a perceived
luxury. item based on a high price. Successful businesses know exactly how much
it costs to produce, and market their products so they can price them to make
money and not lose money. They also understand who their target market is, and
how price sensitive they may be. There are also legal considerations that must
be taken into account to ensure that the business is following government
regulations regarding pricing.

Do you think a rise in prices affects grocery stores?

• Grocery stores are very price competitive. A grocery store may sell staple items
such as milk at a lost just to get customers into their stores.
Would you continue to purchase gasoline even if the price was over 109.000 DZD
per gallon?
• Gasoline is a necessity and most people are forced to continue to purchase
gasoline even if it becomes very expensive.
I. Price is the value of money placed on a good or service
A. The key to setting price is to understand the value that a customer would place
on the item.
II. Gaining Market Share:
A. Increase the firm’s percentage of total sales in a given market.
B. Return on Investment
1. A company may price their products to have a certain percentage of return on
investment.
C. Goal of Pricing
1. Meeting the Competition
2. Some companies just want to be priced similarly to their competitors.
III. Costs and expenses
A. Businesses must continually monitor their costs and expenses when producing a
product to
ensure they are making a profit.
B.Rising costs and expenses
C. Decreasing costs and expenses
D.Break
E. Price
F.Target Market
VI. Government Regulations
A.Federal and state laws

1. The value that a customer places on a product can make a difference on how
much they are willing to pay for a product. If a customer sees the product has
better value or more features they are willing to spend more. But customers have to
see the value. In order to be successful, businesses must know how much it costs
them to produce, market, sell and pay any other expenses associated with their
products. If businesses do not understand what their expenses are, they risk not
pricing the product high enough and losing money. Companies that don’t know, or
understand their expenses will not be in business for long.
2. Different products have different characteristics when it comes to supply and
demand. For instance, everyone needs gas for their cars and is willing to pay more
for it because they have to have it more than candy bars.
Activities:
Question 01: Give the opposite to the following words
1. Rise
2. Purchase
3. Meet competition
4. Staple item

Question 02: Explain the following statements in other words


1. Setting a price
2. Goal of pricing
3. Government Regulations
4. Return On Investment (ROI)
5. Features of a product
Lesson: 03 Changes in values

Sales, describes what a business sells and the money it receives for it. In a
sales report, or sales analysis report, we give an overview of the state of the sales
activities within a company. In which we may use some terms to define the
situation such as : fluctuate, decline, expand…etc.

Situation1: Company: Henderson Audio/Robert Higgins: Sales Manager


First quarter Sales Report:
Overall, first quarter sales increased. However, some products sales declined
sharply. I recommend immediate action. Otherwise, our market share will shrink.
Sales Trends: MP3 Player: Sales of our X2 MP3 players grew through January and
February. They peaked in early March.
Headphones: Headphones sales fluctuated in January. So, we lowered prices. Sales
became steady after that.
Microphones: Microphone sales decreased in January and bottomed out in March.
Expanding our market share will be difficult. I suggest new advertisements and
large discounts.
Situation2: Microsoft
Worker1: Rick, do you have a moment?
Worker2: Sure thing, Karen. What do you need?
Worker1: Well, I missed your sales report. Can you fill me in? I just need the basic
changes.
Worker2: Of course I can. First, computer sales decreased a bit.
Worker1: Should we be worried?
Worker2: No. Those actually fluctuate. And second, Microsoft sales increased by
ten percent.
Worker1: That’s great news!
Worker2: It is. Software sales grew more than any other product.

Terms to Express the Change in Value

Peak, fluctuate, bottom out, increase, decrease, steady.

Activities:
Activity1: Answer the comprehension questions:
1- According to the Sales Report, which product had the least fluctuating sales ?
2- How do you refer to stock that is increasing in value ?
Activity2: Mark these statements as true(T) or False (F) from the sales report:
1-………………….. X2 sales were highest in March.
2-…………………. Headphones sales did not change in the first quarter.
3-………………….. Microphone sales were highest in March than in January.
Activity3: Put the following terms and phrases in the right place of the chart:
bottom out,
peak, decline, shrink, expand, increase.

To become larger to become smaller

……………………… ………………………
…………………… ………………………
……………………… …………..
…………………… ………………………
……………………… ………………………
……………………… …………
………………………
………………………
…………….

Activity4: match the words with their definitions:


1- grow 3- decrease
2- fluctuate 4-steady
A- ………………….not changing.
B- ………………….to change frequently.
C- …………………..to become larger or bigger.
D- …………………..to become less or smaller.
Activity5: Choose the correct answer:
1* What is the conversation mainly about?
a- Sales report errors.
b- Basic sales changes.
c- Increased company sales.
d- Reasons for increased sales.
2* What does the man say about computer sales?
a- They declined slightly.
b- They rarely fluctuate.
c- They are making him worried.
d- They grew more than any other product.

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