Class: Senior Secondary School 1 (SS1 / SSS 1)
Term: 2nd Term
Week: 9
Age: 15 years
Duration: 45 minutes
Subject: Marketing
Curriculum Theme: Trade
Previous Lesson: Marketing Planning Process And Research: Reasons And Data Collection.
Topic: Pricing
Subject Matter: Meaning of pricing, Pricing strategies, Cost plus, Haggling, Price determinants, Competition, Profit maximization

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define pricing.
Identify various pricing strategies.
List the determinants of price.

Affective Domain:

Appreciate the importance of fair pricing in business.
Recognize how different factors influence pricing decisions.

Psychomotor Domain:

Calculate a simple cost-plus price for a product.
Suggest appropriate pricing for a given product or service.

Discuss the role of competition in determining prices.
Interact respectfully during discussions on pricing practices.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum for Senior Secondary Schools.
State Unified Scheme of Work for Marketing (SS1).
Anyanwuocha, R.A. (2009). Fundamentals of Economics for Senior Secondary Schools. Africana First Publishers Plc.
https://www.investopedia.com/terms/p/pricing.asp
https://www.businessnewsdaily.com/4754-pricing-strategies.htm

Instructional Materials

The teacher will teach this lesson with the aid of:

Whiteboard and markers
Newspapers (with product advertisements and prices)
“Price watch” publications or consumer reports
Charts showing pricing examples

Rationale for the Lesson

This lesson helps pupils understand how prices for goods and services are determined in the market. It enables them to recognize the factors businesses consider when setting prices and how these decisions affect consumers and profits in daily life.

Prerequisite/Previous Knowledge

Pupils have some basic knowledge of trade, goods and services, and the concept of buying and selling.

Lesson Content/Board Summary

Pricing

Meaning of Pricing

Pricing is the process of determining the value (price) that a producer or seller will receive in exchange for a product or service. It is a key element in marketing and business strategy.

Pricing Strategies

Pricing strategies are methods businesses use to set the initial price for a product or service. These strategies aim to achieve specific business goals, such as maximizing profit or increasing market share.

The following are common pricing strategies:

Cost-Plus Pricing: This involves calculating the total cost of producing a product and then adding a desired profit margin (a percentage) to that cost.
- Formula: Price = Total Cost + (Percentage Markup x Total Cost)
Haggling (Bargaining): This is a negotiation over the price of an item or service. The final price is agreed upon by both the buyer and the seller through discussion. It is common in informal markets.

Price Determinants

Price determinants are the various factors that influence the price of a product or service in the market.

The following are some key price determinants:

Competition: The presence and intensity of competitors in the market significantly affect pricing. If there are many competitors offering similar products, prices tend to be lower. If there are few competitors, prices can be higher.
Profit Maximization: Businesses often set prices at a level that allows them to earn the highest possible profit. This involves considering costs, demand, and market conditions.
Cost of Production: The expenses incurred in manufacturing or providing a product or service (e.g., raw materials, labour, overheads) directly influence its price.
Demand for the Product: If there is high demand for a product, its price can be set higher. Conversely, low demand often leads to lower prices.
Government Regulations/Taxes: Government policies, taxes, and subsidies can affect the final price of goods and services.
Economic Conditions: Factors like inflation, recession, and consumer purchasing power can influence pricing decisions.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils, reviews the previous lesson briefly, and then asks pupils about the prices of common items they buy (e.g., a loaf of bread, a bottle of soft drink). The teacher then introduces the topic “Pricing” and explains that today’s lesson will focus on understanding how these prices are determined.
Pupils’ Activity: Pupils respond to the teacher’s questions about prices and listen attentively to the introduction.
Learning Point: Pupils recall prior knowledge and are introduced to the lesson’s topic.

Step 2: Meaning of Pricing

Time: 10 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher defines pricing, using simple language and examples from the pupils’ daily experiences. The teacher explains that pricing is not just about putting a number on a product but involves careful thought.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand the definition of pricing.

Step 3: Pricing Strategies

Time: 10 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher explains different pricing strategies, focusing on “Cost-Plus Pricing” and “Haggling.” For Cost-Plus, the teacher gives a simple numerical example on the board (e.g., if cost is N500 and profit margin is 20%, what is the price?). For Haggling, the teacher describes scenarios where it is common, such as in local markets.
Pupils’ Activity: Pupils participate in solving the example, contribute to discussions about haggling, and write down the strategies.
Learning Point: Pupils learn about different approaches to setting prices.

Step 4: Price Determinants

Time: 10 minutes
Teaching Skill: Elaboration/Listing
Teacher’s Activity: The teacher explains the various factors that determine pricing, such as competition, profit maximization, cost of production, and demand. The teacher uses examples from newspapers (price watch) to illustrate how competition affects prices of similar products.
Pupils’ Activity: Pupils observe the examples, contribute ideas on how each determinant affects price, and take notes.
Learning Point: Pupils understand the factors that influence pricing decisions.

Step 5: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

What is pricing?
Mention two pricing strategies.
Explain cost-plus pricing with a simple example.
List three determinants of price.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 6: Conclusion

Time: 5 minutes
Teaching Skill: Summarization/Assignment
Teacher’s Activity: The teacher summarizes the main points of the lesson, reiterating the importance of pricing in business. The teacher then instructs pupils to design a simple product (e.g., a handmade card or a small snack) and determine its price, justifying their choice based on the pricing strategies and determinants discussed. This can be done individually or in small groups.
Pupils’ Activity: Pupils listen to the summary and note down the assignment.
Learning Point: Pupils consolidate their learning and prepare for practical application.

Lesson Keywords

Pricing – The process of determining the value of a product or service.
Cost-Plus Pricing – A strategy where a percentage profit margin is added to the total cost to determine the selling price.
Haggling – A negotiation process between a buyer and seller to agree on a final price.
Competition – The rivalry among businesses offering similar products or services.
Profit Maximization – The goal of a business to achieve the highest possible profit.

Differentiation

For pupils who grasp concepts quickly, the teacher can challenge them to analyze pricing strategies of well-known brands from the newspapers. For pupils needing more support, the teacher can provide simpler examples for cost-plus calculations and offer more direct guidance during discussions on price determinants.

Note for teachers using this lesson plan

Encourage active participation by asking open-ended questions and allowing pupils to share their experiences with pricing. Use real-life examples from the local market to make the concepts relatable. The practical activity of designing a product and pricing it can be extended into a group project to foster teamwork and deeper understanding.