The 4 Ps - The importance of price in the marketing mix
ATL Activity - Price within the marketing mix
Watch this 9-minute introductory video about the importance of pricing strategy in the marketing mix:
Theory of Knowledge (TOK)
What is the value of a product? How do we know what the true value of art is? Consider some of these examples from the commercial world of art:
- May 2004 - Pablo Picasso's 1905 Garçon à la pipe (Boy with a Pipe) was sold for $104m.
- January 2010 - Alberto Giacometti's 1961 L’Homme qui Marche (Walking Man) sold for $104m.
- April 2010 - Pablo Picasso's 1932 Nude, Green Leaves and Bust sold for $106m.
- November 2012 - Claude Monet’s 1905 Water Lilies painting sold for $43.7m in New York.
- May 2012 - Edvard Munch’s 1893 The Scream sold for $120m.
- But perhaps the most prominent case of recent times was in December 2019, when Italian artist Maurizio Cattelan’s Comedian, consisting of only a banana duct-taped to a wall, sold for a $120,000! Cattelan said he purchased the banana at a local market for just $0.30!
How do consumers / customers / users of a good or service "know" whether the price they pay is value for money?
Click the hyperlinks below to access the InThinking resources for this particular section of the IB Business Management syllabus.
- Cost-plus (mark-up) pricing (AO3)
- Penetration pricing (AO3)
- Skimming (AO3)
- Psychological pricing (AO3)
- Loss leader (AO3)
- Price discrimination (AO3)
- Price leadership (AO3)
- Predatory pricing (AO3)
- Theory of Knowledge (TOK) and Price
- Price - Question bank (over 20 questions on this topic for students to try out from the question bank)
- Glossary of key terms
Return to the Unit 4.5 The four Ps homepage
Return to the Unit 4 Marketing homepage