PRINCIPLES OF MARKETING

SUPPLEMENTARY LEARNING MATERIALS

Name:__________________________________ Section:_____________________

Quarter 4: Week 1
Content Standard The learner demonstrates essence of the new product development, pricing, placing
(distribution), and promoting a product or service

Performance Standard The learner is able to design a new product or service, decide types of pricing
approach, and choose distribution methods and promotion tools that respond to market
trends

Most Essential Learning MELC 11. Define a product and differentiates the product, services, and experiences
Competency (ABM_PM11-lla-e-16)

MELC 12. Identify and describe the factors to consider when setting prices and new
product pricing and its general pricing approaches (ABM_PM11-lla-e-17)

No. of Days 4 days

Teaching Dates

LESSON 1 PRODUCT, SERVICE, AND EXPERIENCES

Objectives:
1. Differentiate the product, services and experiences.
2. Understand the difference of product, services, experiences, and the factors when setting prices on the product.
3.Appreciate the importance of the product, services, experiences and the pricing of the the product in planning to put-up a small
business.

1|P a g e Prepared by:

Emelen A. Verano
Trece Martires City Senior High School
INTRODUCTION. Activity 1
Directions. Choose appropriate term in the box and write your answer in a separate sheet of paper.

PRODUCT SERVICE CORE PRODUCT ACTUAL PRODUCT AUGMENTED PRODUCT

PACKAGING PRICE LABELS EXPERIENCES BRAND

____________ 1. Anything that can be offered to a market for attention, acquisition, use of consumption that might
satisfy a want or need. It includes physical objects, services, persons, places, organizations and ideas.
____________2. The problem-solving services or core benefits that consumers are really buying when they obtain a
product.
____________3. Activities, benefits or satisfaction that are offered for sale.
____________4. Additional consumer services and benefits built around the core and actual products.
____________5. A product’s parts, quality level, features, design, brand name, packaging and other attributes that
combine to deliver core product benefits.
____________6. It involves designing and producing the container or wrapper for a product.
____________7. It is used as a marketing exchange of a product or service.
____________ 8. It may range from simple tags attached to products to complex graphics that are part of the
package.
____________9. It is the feeling of a customer that gives them satisfaction.
____________10. It is a name, term, sign, symbol, design or a combination of these, that describes the maker or
seller of the product or service

DEVELOPMENT. Lesson in Focus!

WHAT IS PRODUCT?
A pair of Marikina shoes, a Toyota Vios, a Samsung mobile Telephone, a Land Bank e-savings account,
advice from your doctor- all are products. We define a product as anything that is offered to a market for attention,
acquisition, use or consumption and that might satisfy a want or need. Products include more than just tangible goods.
Broadly defined, products include physical objects, services, persons, places, organizations, ideas or mixes of these
entities. Thus, throughout this text, we use term product broadly to include any or all of these entities.

Services are products that consist of activities, benefits or satisfactions that are offered for sale that are
essentially intangible and do not result in the ownership of anything. Examples are banking, hotel, haircuts, and tax
preparation, online teaching, and home repair services. Because of the importance of services in the world economy,
we will look at services marketing in greater detail in the succeeding lessons.

Levels of product
Product planners need to think about the product on three levels. Each level adds more customer value. The
most basic level is the core product, which addresses the question: What is the buyer really buying? As Figure 1
illustrates, the core product stands at the centre of the total product. It consists of the core, problem-solving
benefits that consumers seek. A woman buying lipstick buys more than lip colour. Charles Revson of Revlon saw this
early: “In the factory, we make cosmetics; in the store, we sell hope. “Theodore Levitt has pointed out that buyers ‘do
not buy quarter- inch drills; they buy quarter-inch holes. Thus, when designing products, marketers must first define
the core of benefits that the product will provide to consumers. At the second level, product planners must turn the core
benefits into an actual product.

2|P a g e Prepared by:

Emelen A. Verano
Trece Martires City Senior High School
 Installation ACTUAL PRODUCT
AUGMENTED
PRODUCT
Packaging

Features
Core benefit
or Services

Figure 1:
CORE PRODUCT
Warranty

Actual products may have as many as five characteristics: a quality level, product and service features, styling,
a brand name and packaging. For example, Nikon’s cam is an actual product. Its name, parts, styling, features,
packaging and other attributes have all been combined carefully to deliver the core benefit- a convenient, high-quality
way to capture important moments.

In addition, the product manager must create an augmented product around the core and actual products by
offering additional consumer services and benefits. It provides consumers with a complete solution to their picture-
taking problems. The dealers might also give buyers a warranty on parts and workmanship, instructions on how to use
the Nikon’s camcorder (a portable combined video camera and video recorder, quick repair services when needed and
online call if they have problems or questions. All of these augmentations greatly needed and important part of the total
products for the consumer.

Consumers wants to see products as multiple packages of benefits that satisfy their needs. First, the
marketers must recognize the core consumer needs that the produce will satisfy. The design of the actual product and
eventually discover the ways to augment to create the package of benefits including the offering of delivery and product
after-sales that will best satisfy consumers. For any additional product augmentation, the marketers will ask the
consumer if they are willing to pay enough to cover the extra cost.

Product Classifications

The classification of the products is according to their durability and tangibility. The goods that are normally
used up easily on a few occasions like a beer, soap and other food products are called non-durable products. While
those products used over an extended period of time and normally survive for a long period of time such as refrigerators,
cars, and furniture are called durable products.

Classification of Products

1. Consumer products- intended for consumer market or end users who purchase for their personal or family
consumptions. The consumer bought the goods based on their shopping habits. The consumer products such
as convenience products, shopping products, specialty products and unsought products.

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Emelen A. Verano
Trece Martires City Senior High School
 Marketing Type of Consumer Product
Consideration Convenience Shopping Specialty Unsought
Customer Buying Frequent purchases, Less frequent Strong brand Little product
Behavior little planning, little purchase, much preference and awareness or
comparison or planning and loyalty, special knowledge, if aware,
shopping effort, low shopping effort, purchase effort, little little or even
customer involvement
comparison of comparison of negative interest
brands and price, brands, low price
quality, style sensitivity
Price Low price Higher price High price Varies
Distribution Widespread Selective distribution Exclusive Varies
distribution, in fewer outlets distribution in only
convenient locations one or a few outlets
per market area
Promotion Mass promotion by Advertising and More carefully Aggressive
the producer personal selling by targeted promotion advertising and
both producers and by both the producer personal selling by
resellers and the reseller both the producer
and the reseller
Example Toothpaste, Major appliances Luxury goods like Life insurance
magazines, laundry Televisions Rolex watches or Blood donations
detergents Clothing fine crystals

2. Industrial Products – are those bought for further processing or for use in conducting a business.
Accordingly, the distinction between a consumer product and an industrial product is based on the purpose
for which the product is purchased. For example, if a consumer buys a Toyota Hilux pick-up car for house
use, the car is a consumer product. However, if the same consumer buys the same Toyota Hilux pick-up car
for use in a delivering business, the pick-up car is an industrial product.

Market Groups of Industrial Product

consideration Materials and parts Capital Items Supplies and Services
Consumer Become part of the buyer’s Helps in the buyer’s Do not enter the finished
choice product, through further production or operations. The product at all. Goods are
processing or as components. products do not become part usually purchased with a
of the finished product. minimum of effort or
comparison.
Materials a) Raw materials consist of a) Installations consist of a) Supplies include
farm products like cotton, buildings (factories, operating supplies
wheat, fruits, livestock and offices) and fixed (lubricants, coal,
vegetables. equipment (generators, computer paper,
b) Manufactured materials drill presses, large pencils) and repair
and parts include computer systems, and and maintenance
component materials like lifts) items (paint, nails,
iron, yarn, cement, and wires. b) Accessory equipment brooms).
c) Component parts like small includes portable factory b) Business services
motors, tires, castings. The equipment and tools include maintenance
component parts enter the (hand tools, lift trucks) and repair services
finished product complete and office equipment (window cleaning,
without change in form. (fax machines, computer repair) and
computers, and desks) business advisory
services (legal,
management

4|P a g e Prepared by:

Emelen A. Verano
Trece Martires City Senior High School
 consulting, and
advertising)
Price Most significant marketing factors Significant marketing factors
Services Most significant marketing factors Significant marketing factors Usually supplied under
contract.
Branding Less important Significant marketing factors
Advertising Less important Less important

Three Levels of Product decisions

1. Individual product decisions. It is relating to the development and marketing of individual products, namely
product attributes, branding, packaging, labelling and products-support services.

a. PRODUCT ATTRIBUTES. Creating a product which define the benefits that the product will offer. These
benefits are given by tangible product attributes like quality, features, style and design.

✓ Product quality – quality is one of the marketer’s major positioning tools. It has a direct impact
on product performance; but it is closely linked to customer value and satisfaction. Others,
quality defined as “freedom from defects’ or sometimes depends on the customer satisfaction.
The product quality has two dimensions – level and consistency. The company should first
choose a quality level that will support the product’s position in the target market in making a
product.

✓ Product features - a product can be offered with varying features. The manufacturing company
can make more features by adding higher-level models. Being the first producer to introduce a
needed and valued new feature is one of the most effective ways to compete. Like the features
of Samsung cellphone as compared to Nokia cellphone.

✓ Product style and design – Design is a broader concept than style. Style simply defines the
appearance of a product. A sensational style may grab attention and produce pleasing
aesthetics but it does not necessarily make the product perform better. For example, a chair
may look great yet be extremely uncomfortable. However, design is more than skin deep – it
goes to the very heart of a product.

B. BRANDING. A brand is a name, term, sign, symbol, design or a combination of these, that describes the
maker or seller of the product or service. For example, most consumers would perceive a bottle of Channel
perfume a high-quality, expensive product. A brand can provide a guarantee of reliability and quality. Branding
has become so strong that today hardly anything goes unbranded. Even fruits and vegetables are branded
such as Sunkist oranges and Del Monte pineapples. Some products, but, carry no brands. Like the “Generic’
products are unbranded, plainly packaged, less expensive versions of common products ranging from such
items as spaghetti to paper towels and canned peaches.

Branding helps buyers in many ways:

✓ Brand names tell the buyer something about product quality. For example, you always buy the
same brand Jollibee Hamburger because you know the same quality will get each time you buy
as compared to the hamburger selling in the street.
✓ Brand names also increase the shopper’s efficiency. Imagine a buyer going into a supermarket
and finding thousands of generic products.
✓ Brand names help call consumers’ attention to new products that might benefit them

5|P a g e Prepared by:

Emelen A. Verano
Trece Martires City Senior High School
 Branding also gives the supplier several advantages:
✓ The brand name makes it easier for the supplier to process orders and track down problems.
✓ The supplier’s brand name and trademark provide legal protection for unique production
features that otherwise might be copied by competitors.
✓ Branding enables the supplier to attract a loyal and profitable set of customers.

Branding adds value to consumers and society:

✓ Those who favour branding suggest that it leads to higher and more consistent product quality.
✓ Branding also increases innovation by giving producers an incentive to look for new features
that can be protected against imitating competitors,
✓ Branding helps shoppers because it provides much more information about products and where
to find them

C. PACKAGING. It involves designing and producing the container or wrapper for a product. The package
may include the;

✓ product’s primary container like the tube holding and protecting Colgate toothpaste;
✓ secondary package is that thrown away when the product is about to be used like cardboard
box containing the tube of Colgate
✓ the shipping package necessary to store, identify and ship the product like corrugated box.

D. LABELLING. Labels may range from simple tags attached to products to complex graphics that are part
of the package.
Labelling performs several functions namely:
✓ it identifies the product or brand, such as the name “Sunkist’ stamped on oranges.
✓ It might also grade the product
✓ It describes several things about the product – who made it, where it was made, when it was made,
its contents, how it is to be used and how to use it safely.
✓ It might promote the product through attractive graphics.

Labelling has also been affected in recent times by unit pricing (stating the price per unit of standard
measure), open dating (stating the expected shelf life of the product) and nutritional labelling (stating the
nutritional values in the product). The sellers must ensure that their labels contain all the required information
and comply with national or international requirements.

E. PRODUCT-SUPPORT SERVICES. Customer service is another element of product strategy. A company’s

offer to the marketplace usually includes some services, which can be a minor or a major part of the total offer. It is a
service that augment actual products. Many companies are using product-support services as a major tool in gaining
competitive advantage.

Some consumers want credit and financing services, fast and reliable delivery, or quick installation. That is
why the company design its product and support services to meet the needs of target customers.

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Emelen A. Verano
Trece Martires City Senior High School
WHAT IS SERVICE?

SERVICES include legal assistance, auditing services, management consulting and services of advertising agencies
that are normally provided by other business.

Characteristics of Service

1. It is not homogeneous, if offers variability

2. It is perishable, there is inseparability.
3. It is intangibility.

WHAT IS EXPERIENCE?

EXPERIENCE is marketing or experiential marketing is an intentional activity which immerser people within your brand
through the simulation of their sense, which results in a positive emotional tie to your company. For example, Disney
World an Interactive playground to promote the product of movie and entertainment.

How to use the Experience on Marketing?

• Review the experience that you are providing to your client- if it is there anything truly unique and different?

• Determine your brand experience- what feeling should your clients have about your brand?

Product is the main focus of a company for the wants or needs of the customers and the services is the way
which your product is being recognize to many, while the experience is the feeling of a customer that gives
them satisfaction. However, they are connected to each other to make a business successful.

ENGAGEMENT and ASSIMILATION. Activity 2

Directions. Read carefully each item. Use a separate sheet for your answer. Write only the letter of the best answer
for each test item.
1. What is a product bought by final consumers for personal consumption?
a. Actual Product c. Consumer Product
b. Augmented Product d. Durable Product

2. Which of the following is anything that can be offered to a market for attention, acquisition, use of
consumption that might satisfy a want or need. It includes physical objects, services, persons, places,
organizations and ideas?
a. Actual Product c. Consumer Product
b. Augmented Product d. Durable Product

3. What is the developing a product involves defining the benefits that the product will offer?
a. Branding c. Packaging
b. Labelling d. Product attributes

4. Which of the following about branding WILL NOT help buyers in many ways?
a. Brand names tell the buyer something about product quality. Buyers who always buy the same brand
know that they will get the same quality each time they buy.
b. Brand names also increase the shopper’s efficiency. Imagine a buyer going into a supermarket and
finding thousands of generic products.

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Emelen A. Verano
Trece Martires City Senior High School
 c. Branding helps the supplier to segment markets. For example, Cadbury offers Dairy Milk, Roses and
other brands, not just one general confectionery product for all consumers.
d. Brand names help call consumer’s attention to new products that might benefit them. The brand name
becomes the basis upon which a whole story can be built about the new product’s special qualities.

5. Which of the following will it cost less to keep the goodwill of existing customers that it does to attract new
customers or win back lost customers?
a. Branding c. Packaging
b. Labelling d. product attributes

6. What are industrial products that help in the buyer’s production or operations?
a. Brands c. Materials and parts
b. Capital items d. Label

7. For example, most consumers would perceive a bottle of Chanel perfume as a high-quality, expensive
product. But the same perfume in an unmarked bottle would probably be viewed as lower in quality, even if
the fragrance were identical. What product decision is asked?
a. Branding c. Packaging
b. Labelling d. Product Attributes

8. What level of product where installation, actual sale-service, warranty and delivery and credit belong?
a. Actual Product c. Consumer Product
b. Augmented Product d. Durable Product

9. What are products used over an extended period of time and normally survive for many years. Examples
are refrigerators, cars and furniture?
a. Actual product c. Consumer Product
b. Augmented product d. Durable Product
10. Which of the following IS NOT belong about branding that adds value to consumers and society?
a. The brand name makes it easier for the supplier to process orders and track down problems.
b. Those who favour branding suggest that it leads to higher and more consistent product quality.
c. Branding also increases innovation by giving producers an incentive to look for new features that can
be protected against imitating competitors. Thus, branding results in more product variety and choice
for consumers.
d. Branding helps shoppers because it provides much more information about products and where to find
them.

Great job! You are almost done with this lesson.

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Emelen A. Verano
Trece Martires City Senior High School
 LESSON 2 PRICING STRATEGIES

Objectives:
1. Define the price and pricing strategy.
2. Understand the factors to consider when setting prices for a product or service.
3.Appreciate the pricing strategies and its approaches in putting- up a small business enterprise.

Activity 1.
Directions: Read carefully each statement and select the letter with the best answer. Write in your answer sheet.
1. It refers to the fair amount of return.
a. Fixed Cost c. Overhead Cost
b. Labor d. Profit Cost

2. This refers to the practice of setting low prices on selected products resulting to less profits.
a. Loss Leader Pricing c. Price Lining Pricing
b. Odd-Numbered Pricing d. Price-Quality Relationship Pricing

3. The following are forms of promotional pricing EXCEPT……

a. Allowance c. Low – intertest Financing
b. Cash rebates d. Sale

4. What kind of market competition that has only few buyers competing in the purchase of commodity?
a. Monopoly c. oligopsony
b. Oligopoly d. Pure Competition

5. In a discrimminatory pricing, identical products with different images are priced at two different levels. This is known as
_______________.
a. Customer Segment Pricing c. Location Pricing
b. Image Pricing d. Product Form Pricing

6. Which statement best describe a Discount?

a. It encourages buyers to pay their bills quickly
b. It is a reduction from the list price that as given by sellers to buyers.
c. It is a reduction from the list price to buyers for performing some activity
d. It is a price reduction given when a used product is part of the payment on a new product.

7. Which among the choices below is NOT an odd-numbered pricing?

a. Php89.15 c. Php48.75
b. Php100.00 d. Php99.95

8. Why are discounts given to customers?

a. To reward customers for buying more goods.
b. To encourage buyers to pay their bills quickly.
c. To reward customers for early payment volume purchase and off season buying.
d. To help the manufacture maintain production even at off season.

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Emelen A. Verano
Trece Martires City Senior High School
 9. What is the degree of control over price by the seller in a monopsony market competition?
a. It has a very slight degree of control over the price of the commodity.
b. It has a high degree of controcl over the price of the commodity.
c. It has a very high degree of control over the price of the commodity.
d. It doesn’t have a degree of control over the price of the commodity.

10. Which of the following is NOT included under geographical pricing?

a. Freight Absorption c. Point- of Production
b. Location d. Zone delivered

DEVELOPMENT. Lesson in Focus!

The Origins of Pricing

Chances are, you have already heard of the word “SRP”. Short for “Suggested Retail Price.” It indicates the price that
a consumer product is supposed to be offered at over the counter and in supermarkets.
But once a upon a time, there was no such thing as a suggested retail price. Prices are always the subject of negotiation.
In reality, you would still see this pricing attitude whenever you go to tiangge or maket stalls or palengke (wet markets). In these
places, the consumers are actually supposed to haggle or make tawad with the vendors. In most cases, vendors can also show
resentment for buyers who do not bother to haggle!

However, the above condition is borne out by the time-honored “dance” between the buyer and the seller. It is a socio-
cutlural norm that all parties are expected to respect and abide by. Because the seller knows that the buyer is going to ask for a
discount (tawad), a generous level of price paddling is taken into consideration. The buyer is expected to understand that the seller
does and therefore entitled to ask for a “tawad.” This is the reason why merchandisers can go as far a llok at non-hanggling shopper
with contempt.
What is the moral of the story? Haggle whenever you can!
There are two more lessons that can be extracted from the above scenario and these are significance for understanding
the nature of pricing.
1. Consumers do not really know what the real price of a product should be;
2. Sellers can have a pretty wide leeway on how to price their products.

What is Pricing?
• It is a process of determining the value that is received by an organization in exchange of its products or
services.
• The pricing decisions of an organization have a direct impact on its success.
• The price of a product is influenced by several factors such as manufacturing cost, competition, market
conditions, and quality of the product.

PRICE is an amount of money charged by product or services. It is used as a marketing exchange of a product or
service.

PRICING OBJECTIVES
1. Profit – Oriented Objectives. Profited oriented focuses on product and business finance. The profit of a
business is the money left behind after all costs have been covered. The price per product is set higher than
the overall cost of making and selling the product ensuring that the business makes a profit form each sale.
The company is guaranteed a profit on every sale. Profit-oriented objectives call for profit generation such as:
a. The Target Return Objective. The Return of Investment or ROI is the amount of profit that the company
aims to make on the basis of the amount of assets or resources it has tied up in the product.

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Emelen A. Verano
Trece Martires City Senior High School
 b. The Profit Maximization Objective. It implies that prices are set in such a way that they help in achieving
maximum profit. Profit maximization is more beneficial in the long run as compared to short run.

2. Sales-Oriented objectives. It refers to those that will provide higher sales volume. This maybe achieve
through any of the following:
a. Increasing sales volume. Refers to the sales expansion by giving discounts to customers. In the short
run, an organization might be ready to bear losses by reducing the prices to increase the sales volume.
For instance, the hotel industry faces low demand during off-season; prefers to decrease its prices and
offers discounts to increase sales.
b. Maintaining or increasing market share. Plays an important role in the success of an organization. The
organization tries to gain market share by lowering down the prices as compared to its competitors.

3. Status quo-oriented objectives. It requires maintaining the same prices for the company’s products. This
happens when the firm is satisfied with its current market share and profits. Status quo pricing maybe due to
(a) to stabilize prices; (b) to meet competition; and (c) to avoid competition.

The Pricing Procedure

The pricing procedure refers to the series of steps adapted in the determination of price. The series of steps
are the following:
1. The determination of the realistic range of choice. The first step in pricing by which a final choice shall
be made.
2. The selection of pricing strategy. The decision-maker may adapt market skimming strategy or
penetration strategy in selecting appropriate pricing strategy.
a. Market skimming strategy. It requires the setting of price at the upper limit of the realistic range of
choice.
b. Penetration Strategy. Setting the price at the bottom of the realistic price range. The purpose is to
penetrate the market as fast as they could.

Pricing Approaches
Good pricing usually starts with customers and their perceptions of value. Eventually, the customer will decide
whether a product is worth its price or not. Therefore, we start with customer value. When customer buys a product,
they exchange something of value (the price) to get something of value (the benefits of having or using a particular
product). Therefore, it is crucial to understand how much value consumers place on her benefits they receive from the
product and setting a price that capture exactly this value.

Prices of products and services may be set based on any of the various pricing approaches as (a) Cost-
based Approach; (b) Buyer Based Approach; and (c) Competition Based Approach.

1. Cost-Based Approach. It is a very simple approach. A company figures out how much it costs to make a
product or deliver a service and then sets the price by adding a profit to the cost.
For example, if it costs a small toy manufacturer Php10.00 to make its signature stuffed animal (taking
into account fixed and variable costs) and the company wants a 20 percent profit per unit, the price to the
retailer will be 12.00 pesos.

Types of Cost-Based Pricing:

a. Cost Plus Pricing. It calls for adding a percentage of cost on top of the total cost. The added
percentage constitutes the profit margin, while total costs represent the direct costs and the
overhead costs.

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Emelen A. Verano
Trece Martires City Senior High School
 Price = direct costs + overhead costs + profit margin
Where direct costs = material + labor
Overhead costs = a share of fixed indirect costs
Profit margin = a fair amount of return

b. Target Rate of return Pricing. It enables a company to establish the level of profits that it
feels will yield a satisfactory return.

P= DVC + F/X + RK/X

Where P = selling price using the target rate of return method
DVC = direct unit variable costs
F = fixed costs
X = standard unit volume
R = Rate of Return Desired
K = Capital (Total operating process) employed

2. Buyer-Based Approach. It deals with consumer perception or behavior as bases in determining the selling
price of a product or service. This method is composed of the following methods:

a. Perceived Value Pricing. This method establishes the price for a product based on the
buyer’s perception. The value of the product to the market becomes the basis for the price.
b. Price-Quality Relationship Pricing. It is also known as prestige strategy. It is based on the
premise that consumers will feel that products below a particular price will have inferior quality.
This approach hinges on the observation that consumers associate high price with high quality
and low price with low quality.
c. Loss-leader Pricing. It refers to the practice of setting low prices on selected products which
will result in the generation of less profits, but with the objective of increasing the sales volume
of other products sold by the company.
d. Odd-Numbered Pricing. Also known as “nine and zero effect”. This refers to the practice of
setting price even below peso amounts. Prices that end in a non-rounded odd number give the
consumers the perception that the prices are not expensive. It is seen to be “friendlier” or more
palatable than even numbers.
e. Price Lining Pricing. It refers to the practice of selling merchandise at a limited number of
predetermined price levels. The different price levels are intended to represent various levels
of quality. The buyer is then provided with various buying options increasing his chance of
making a purchase.

3. Competitive-Based Approach. It refers to the setting of prices based on what prices are being charged by
competitors. There are two kinds of pricing under this approach namely (a) going-rate pricing and (2) sealed
bid-pricing.

a. Going-Rate Pricing. Under this method, the firm adapts a price based on the competitor’s
price. It is proactive because it uses price as a communication tool to inform the market about
the value of the product.
b. Sealed -Bid Price. The firm sets its price to be a little lower the competitor’s. less attention is
also given to the firm’s costs and demand.

12 | P a g e Prepared by:

Emelen A. Verano
Trece Martires City Senior High School
Activity 2. Think…Recall… Do..
Direction: Fill the boxes with correct responses. Write in your answer sheet.

A. Pricing Objectives

(1) (2) (3)

B. Pricing Approaches

(4) (7) (13)

(4) (5) (6)

(5) (8) (14)

(7) (10) (13)

(6) (9) (15)

(8) (11) (14)

(10)
(9) (12) (15)

(11)

(12)

13 | P a g e Prepared by:

Emelen A. Verano
Trece Martires City Senior High School
Assimilation. Activity 3.
Direction: Based on your perception, how can you tell if something is cheap or expensive? Write your
personal answer in 3 sentences only.
Rubric:
Criteria Excellent Good Fair Poor Needs Improvement
5 4 3 2 1
Clarity of All the thoughts were Most of the thoughts Some thoughts were No organization of The thought can’t be
thoughts very clear. were fairly clear. minimal clear. thoughts. understood.

Reasoning The stand was well The stand was fairly The stand was The stand was poor The stand is completely
reasoned out. reasonable. somehow reasonable. reasonable unreasonable.

Prepared: Checked:

EMELEN A. VERANO MARICRIS G. PETELO

14 | P a g e Prepared by:

Emelen A. Verano
Trece Martires City Senior High School