Pricing Strategies Practice Exam

Pricing Strategies Practice Exam

About Pricing Strategies
Pricing strategy refers to method companies use to price their products or services. Almost all companies, large or small, base the price of their products and services on production, labor and advertising expenses and then add on a certain percentage so they can make a profit. There are several different pricing strategies, such as penetration pricing, price skimming, discount pricing, product life cycle pricing and even competitive pricing.

Pricing strategies determine the price companies set for their products. The price can be set to maximize profitability for each unit sold or from the market overall. It can also be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market. Pricing strategies can bring both competitive advantages and disadvantages to its firm and often dictate the success or failure of a business; thus, it is crucial to choose the right strategy.

Why is Pricing Strategies important?

Not every price you set needs to maximize your margins. Many small businesses use price to compete, change market share or create different revenue scenarios. Understanding how pricing affects your business model, not just your bottom line, will help you better choose price levels.

Importance of Pricing
•    Flexible Element of Marketing Mix
•    Determine the Profitability
•    Price Creates First Impression
•    Vital Element of Sales Promotion
•    Effect of Price on Profit Margins
•    Effect of Price on Sales Volumes
•    Market Share and Competition
•    Price and Business Positioning

Who should take the Pricing Strategies Exam?
•    Sales or marketing professionals
•    Business owners or Entrepreneurs
•    Innovators
•    Anyone who wants to assess their pricing skills
•    Sales or Marketing managers and senior executives
•    Recruitment consultants
•    Anyone interested in pricing

Knowledge and Skills required for the Pricing Strategies Practice Exam

Basic costing skills and analytical bent of mind is needed to excel in pricing strategies career.

Pricing Strategies Practice Exam Objective

Pricing Strategies exam focuses on assessing your skills and knowledge in pricing basics, pricing estimation and discrimination.

Pricing Strategies Practice Exam Pre-requisite

There are no prerequisites for the Pricing Strategies exam.

Pricing Strategies Certification Course Outline

1. Demand Curve and Pricing Basics
1.1 Importance of Pricing
1.2 Pricing Complexity
1.3 Pricing Approaches
1.4 Cost Based Pricing
1.5 Competition Based Pricing
1.6 Customer Based Pricing
1.7 Price Elasticity
1.8 Optimal Price

2. Pricing Simulation
2.1 Price Response Estimation
2.2 Market Data
2.3 Pricing Simulation
2.4 Measuring Willingness-to-Pay
2.5 Price Testing

3. Price Discrimination
3.1 What is Price Discrimination
3.2 Complements
3.3 Substitutes
3.4 Bundling
3.5 Price Differentiation

Exam Format and Information
Certification name – Pricing Strategies Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199