София 1700, Студентски град “Христо Ботев”,
Endorsed:
Adopted by a decision issued by the Faculty
Council of „Management and Administration”
Dean
Protocol № /
CURRICULUM
Academic subject:
Subject code:
Educational and qualification degree:
Status of the course:
Field of higher education:
3.
Professional:
3.8.
Specialty:
Faculty:
Department:
Total student academic load
(average classes per course):
Non-contact student academic load
Credits:
Lecturer of the course:
3.8.34.
PRICE POLICY
B33834C0642
Bachelor
Compulsory, Department course
Social, Economic and Law
Sciences
Economics
Economics taught in English
Marketing and Strategic Planning
Management and Administration
Marketing and Strategic Planning
30/30
90
6
Assoc. Prof. Tatyana Neycheva
Netseva-Porcheva, Ph.D.
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
ANNOTATION
1. The academic course ”Price Policy” start from the academic year 2014-2015 with
the students of the specialty “Marketing and Strategic Planning”, part of the professional
field of study „Economics“ - Economics taught in English, of the educational and
qualification degree of “Bachelor”.
2. Content of the course:
The purpose of the course "Price Policy" is students to build theoretical knowledge and
practical skills in the area of the pricing policy of the company.
The course is structured in seven parts.
The first part gives answer the question “What is a price?” and examines pricing as a
marketing activity. It discusses also the importance of the pricing in today’s fastchanging environment.
The second part examines internal and external considerations affecting price
decisions: overall marketing strategy, objectives and other elements of the marketing
mix, organizational considerations, the market and demand, the costs and profit, the
economy and other external factors.
The third part is devoted to the pricing objectives - types of pricing objectives and their
essence.
The fourth part is dedicated to demand and price sensitivity of buyers to price level.
The fifth part examines types of costs and levels of production.
The sixth part explains the three major pricing methods - cost-based pricing, customer
value-based pricing, and competition-based pricing - their essence, application,
advantages and disadvantages. It discusses also the importance of understanding,
company costs, customer-value perceptions, and competitor strategies when setting
prices.
The seventh part describes the major strategies for pricing new products, explains how
companies find a set of prices that maximizes the profits from the total product mix,
discusses how companies adjust their prices to take into account different types of
customers and situations, examines the key issues related to initiating and responding
to price changes, etc.
3. Language of education: English
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
2
CONTENT OF THE CURRICULUM
А. LECTURES
№
TOPIC
Part 1: INTRODUCTION
 What Is a Price?
 Pricing as a Marketing Activity
Classes
2
Part 2: INTERNAL AND EXTERNAL CONSIDERATIONS
AFFECTING PRICE DECISIONS
 Overall Marketing Strategy
 Objectives and Other Elements of Marketing Mix
 Organizational Considerations
 The Market and Demand
 The Costs and Profit
 The Economy
 Other External Factors
2
PART 3: PRICING OBJECTIVES
 Survival
 Maximum Current Profit
 Maximum Market Share
 Maximum Market Skimming
 Product-Quality Leadership
 Other Objectives
2
PART 4: DETERMINING DEMAND
 Price Sensitivity
 Estimating Demand Curves
 Price Elasticity of Demand
 Techniques to measuring of price sensitivity
PART 5: ESTIMATING COSTS
 Types of Costs and Levels of Production
 Accumulated Production
 Target Costing
3
3
Part 6: PRICING METHODS
4
Cost-Based Pricing
 Economic logic of cost-based pricing
 Why cost-based pricing is so popular?
 Basic methods of cost-based pricing – Cost Calculating
Pricing, Full Cost Recovery Pricing (FCRP), Variable Cost
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
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3
Recovery Pricing (VCRP), Marginal Cost Pricing,
Contribution Based-Pricing, Target ROI Pricing.
Customer Value-Based Pricing
 What is Value?
 Value of product as factor to determine its price.
 Approaches for measuring and reporting the value of
pricing – Customer Value Modeling (CVM) and Economic
Value Modeling (EVM).
 Applying a value map in pricing and marketing.
4
Competition-Based Pricing
 Going-Rate Pricing (Competitor Parity Pricing)
 Competitive Bidding
 Predatory Pricing
4
Part 7: PRICING STRATEGIES
New-Product Pricing Strategies
 Market-Skimming Pricing
 Market-Penetration Pricing
Product Mix Pricing Strategies
 Product Line Pricing
 Optional Product Pricing|
 Captive Product Pricing
 By-Product Pricing
 Product Bundle Pricing
Price Adjustment Strategies
 Discount and Allowance Pricing
 Segmented Pricing
 Psychological Pricing
 Promotional Pricing
 Geographical Pricing
 Dynamic Pricing
 International Pricing
2
1
1
1
Price Changes
 Initiating Price Changes
 Responding to Price Changes
Public Policy and Marketing
 Pricing within Channel Levels
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
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1
4

Pricing Across Channel Levels
B. SEMINARS
№
1.
TOPIC
Student
Student
Contact
nonacademic contact
load
academic
(number
load
of
(number
classes).
of
classes).
WHAT IS A PRICE? PRICING AS A MARKETING
ACTIVITY
 Kotler P., G. Armstrong, Principles of Marketing,
14ed, Pearson, New Jersey, 2012
 Kotler P., K. Keller, Marketing Management, 14ed,
Prentice Hall, New Jersey, 2012
2
2. INTERNAL AND EXTERNAL CONSIDERATIONS
AFFECTING PRICE DECISIONS
• Kotler P., G. Armstrong, Principles of Marketing,
14ed, Pearson, New Jersey, 2012
2
3. PRICING OBJECTIVES
• Kotler P., K. Keller, Marketing Management,
14ed, Prentice Hall, New Jersey, 2012
2
4. DETERMINING DEMAND
 Kotler P., K. Keller, Marketing Management, 14ed,
Prentice Hall, New Jersey, 2012
3
5. ESTIMATING COSTS
 Kotler P., K. Keller, Marketing Management, 14ed,
Prentice Hall, New Jersey, 2012
3
6. PRICING METHODS
Cost-Based Pricing
 Kotler P., G. Armstrong, Principles of Marketing,
14ed, Pearson, New Jersey, 2012
 Kotler P., K. Keller, Marketing Management, 14ed,
Prentice Hall, New Jersey, 2012
 Macdivitt, H. and M. Wilkinson, Value-Based
4
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
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5


Pricing, Drive Sales and Boost Your Bottom Line
by Creating, Communicating and Capturing
Customer Value, McGraw-Hill, 2012
Nagle, T., J. Hogan and J. Zale, The Strategy and
Tactics of Pricing – A Guide to Growing More
Profitable, 5 ed., Pearson, New Jersey, 2011
Schindler, R., Pricing Strategies: A Marketing
Approach, SAGE Publications, Inc., 2012
Customer Value-Based Pricing
 Kotler P., G. Armstrong, Principles of Marketing,
14ed, Pearson, New Jersey, 2012
 Kotler P., K. Keller, Marketing Management, 14ed,
Prentice Hall, New Jersey, 2012
 Macdivitt, H. and M. Wilkinson, Value-Based
Pricing, Drive Sales and Boost Your Bottom Line
by Creating, Communicating and Capturing
Customer Value, McGraw-Hill, 2012
 Nagle, T., J. Hogan and J. Zale, The Strategy and
Tactics of Pricing – A Guide to Growing More
Profitable, 5 ed., Pearson, New Jersey, 2011
 Schindler, R., Pricing Strategies: A Marketing
Approach, SAGE Publications, Inc., 2012
 Smith, T., Pricing Strategy: Setting Price Levels,
Managing Price Discounts and Establishing Price
Structures, South-western, Cengage Learning,
2012
 Baker, W., M. Marn and C. Zavada, The Price
Advantage, John Wiley & Sons, Inc., 2010
Competition-Based Pricing
 Kotler P., G. Armstrong, Principles of Marketing,
14ed, Pearson, New Jersey, 2012
 Macdivitt, H. and M. Wilkinson, Value-Based
Pricing, Drive Sales and Boost Your Bottom Line
by Creating, Communicating and Capturing
Customer Value, McGraw-Hill, 2012
 Nagle, T., J. Hogan and J. Zale, The Strategy and
Tactics of Pricing – A Guide to Growing More
Profitable, 5 ed., Pearson, New Jersey, 2011
7. PRICING STRATEGIES
 Kotler P., G. Armstrong, Principles of Marketing,
14ed, Pearson, New Jersey, 2012
 Kotler P., K. Keller, Marketing Management, 14ed,
4
4
6
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
6



Prentice Hall, New Jersey, 2012
Nagle, T., J. Hogan and J. Zale, The Strategy and
Tactics of Pricing – A Guide to Growing More
Profitable, 5 ed., Pearson, New Jersey, 2011
Schindler, R., Pricing Strategies: A Marketing
Approach, SAGE Publications, Inc., 2012
Smith, T., Pricing Strategy: Setting Price Levels,
Managing Price Discounts and Establishing Price
Structures, South-western, Cengage Learning,
2012
METHOD / TEACHING STRATEGY:
The teaching is done through the combination and expands of lectures with seminars,
solving of cases and tasks. PowerPoint, slides and other technical devices are used.
INDIVIDUAL ASSIGNMENTS:
The connection with the practice is ensured by placing individual assignments to the
students. Assignments are placed and defended during the seminars according to
individual preferences and abilities of the students. Practical work is for a particular real
economic object. It is evaluated separately and there is a certain weight in the final
assessment for the course.
ASSESSMENT METHODS:
During the semester the students are making individual assignments and they have to
do two interim tests.
The students which results of the individually assignment and both tests are Very Good
/5/ or Excellent /6/ to be exempt from the exam.
The other students take an examination.
 The formula for the final assessment, for all students, is formulating (exempt
from examination and appearing for an examination) as the following:

FA = 0,2*T1+0,2*T2+0,3*Т+0,3*IA,
Where
FA
= final assessment
T1, T2 = evaluation of the two tasks
Т
= assessment on the theoretical material
IA
= assessment of the individual assignment
The final score was a six-point system. The minimum score for the successful
completion of the training is Fair /3/.
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
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7
A compliance assessment with the European system of credit transfer is as
follows:
Excellent /6/
Very good /5/
Good /4/
A
B
C
Fair /3/
D
Poor /2/
E
Credits are awarded as provided for in the plan
FX
F
No credits awarded
EXPECTED RESULTS OF THE ACADEMIC TRAINING
Students will acquire skills:
• To define prices, taking into account the priority factors and linking them with the
methods of pricing.
• To prepare analysis and assessments of various pricing decisions.
• To operate and offer an arsenal of pricing strategies and develop pricing programs.
The knowledge and skills of the course „Pricing Policy“ are necessary for the successful
studying of the material related to other academic courses like: „Marketing Planning“,
„Marketing Control“, „International Marketing“, etc.
DISSEMINATION OF THE COURSE:
1.
2.
3.
4.
Pricing Policies, Pompeu Fabra University, Barcelona, Spain
Pricing Strategy, Aarhus University, Aarhus, Denmark
Pricing, Novancia Business School, Paris, France
Pricing Strategy, Anglo-American University, Prague, Czech Republic
TOTAL STUDENT ACADEMIC LOAD
Type of classes/academic load
Lectures
Seminars
Laboratory training
Practical training
Term paper
Final thesis
Individual assignment
Interim exam/test
On-going assessment
Exam
Total
Overall
student
academic
load
30
30
60
Student
academic
load,
average
classes per
week
2
2
4
Student
non-contact
academic
load
Total
10
30
30
20
30
10
20
90
60
RECOMMENDED LITERATURE
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
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8
А. BASIC
1. Kotler P., G. Armstrong, Principles of Marketing, 14ed, Pearson, New Jersey, 2012
2. Kotler P., K. Keller, Marketing Management, 14ed, Prentice Hall, New Jersey, 2012
3. Macdivitt, H. and M. Wilkinson, Value-Based Pricing, Drive Sales and Boost Your
Bottom Line by Creating, Communicating and Capturing Customer Value, McGrawHill, 2012
4. Nagle, T., J. Hogan and J. Zale, The Strategy and Tactics of Pricing – A Guide to
Growing More Profitable, 5 ed., Pearson, New Jersey, 2011
5. Schindler, R., Pricing Strategies: A Marketing Approach, SAGE Publications, Inc.,
2012
6. Smith, T., Pricing Strategy: Setting Price Levels, Managing Price Discounts and
Establishing Price Structures, South-western, Cengage Learning, 2012
B. ADDITIONAL
1. Baker, W., M. Marn and C. Zavada, The Price Advantage, John Wiley & Sons, Inc.,
2010
2. Hinterhuber, A., S. Liozu, Innovation In Pricing: Contemporary Theories and Best
Practices, Taylor & Francis Group, 2012
3. Stiving, M., Impact Pricing: Your Blueprint for Driving Profits, Ep Entepreneur Press,
2011
DRAFTED BY:
Associate Professor Tatyana Netseva- Porcheva, Ph.D. …
HEAD OF DEPARTMENT:
Associate Professor Pencho Ivanov, Ph.D. …………………
DEAN:
Professor Мargarita Harizanova, Ph.D. ………………………
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
9