Understanding Price Mix

Curriculum Links

Subject: Business Studies
Curriculum Area: Social Sciences - Commerce
Level: Year 10 (Aligned with NCEA Level 1 Preparation)
Key Competency Focus: Thinking, Relating to Others, Participating and Contributing

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Lesson Duration: 39 Minutes

Class Size: 19 Students
Lesson Type: Interactive and Engaging Introduction

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Lesson Objectives

By the end of the lesson, students will be able to:

• Recall the 4 P’s of the Marketing Mix
• Understand the role of Price in the Marketing Mix
• Identify different pricing strategies used by New Zealand businesses with real-world examples

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Lesson Breakdown

1. Introduction & Recap – (6 minutes)

• Greet students and ask them:
  "Who can list the 4 P’s of Marketing?"
  • Expected answers: Product, Price, Place, Promotion.
• Quick Discussion:
  • Ask students to give examples of local or popular brands in New Zealand (e.g., Whittaker’s, Allbirds, L&P, Air New Zealand).
  • Assign one example per student and ask them to identify what they sell (Product) and how they promote it (Promotion).
• Transition: "So, we’ve talked about Product and Promotion in past lessons… today, we’ll focus on Price!"

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2. Exploring the 'Price' Element (10 minutes)

• Definition of 'Price' (1-2 minutes)

  • Ask: "Why is price important when selling a product?"
  • Expected responses: Profit, affordability, competition, customer trust.

• Pricing Strategies Overview (8 minutes)
  Introduce the following strategies using New Zealand-specific examples:

  1. Penetration Pricing – New businesses set low prices to attract customers.
     • Example: Kogan Mobile offers cheap mobile plans to compete with Spark and Vodafone.
  2. Premium Pricing – Pricing high to signal high quality.
     • Example: Allbirds Shoes, known for sustainable and comfortable design but more expensive than regular sneakers.
  3. Competitive Pricing – Setting prices similar to competitors.
     • Example: Pak’nSave vs Countdown vs New World, which often match each other’s specials.
  4. Psychological Pricing – Prices that appear lower (e.g., $9.99 instead of $10).
     • Example: Most supermarket products, electronics, and clothing stores like The Warehouse.
  5. Seasonal Pricing – Prices change based on demand during different times of the year.
     • Example: Air New Zealand flight prices increasing around school holidays.

• Class Discussion:

  • Which products do students think are overpriced but still sell well in NZ?
  • What pricing strategies do they notice when shopping?

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3. Fun Group Activity – “Shark Tank NZ” (15 minutes)

Students work in small groups of 3-4 to create a new product and decide on its pricing strategy.

• Step 1: Give students a list of product ideas (or let them create their own). Examples:
  • A healthy energy drink
  • A smart school bag
  • A sustainable phone case
• Step 2: Groups must decide:
  1. What their product is
  2. Which pricing strategy they will use and why
  3. How their pricing compares to competitors
• Step 3: Each group gives a 30-second pitch to the class about their price strategy.

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4. Closing & Reflection (8 minutes)

• Ask students: "Which pricing strategy do you think is smartest in today’s market?"
• Summarise key points:
  • Different businesses use different pricing strategies based on market conditions.
  • Price affects consumer perceptions and business success.
• Exit Question:
  Have students write their answer to this quick question on a post-it note before leaving:
  "Which pricing strategy do you think is most effective and why?"

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Assessment & Homework Extension

• Informal Assessment: Observe student participation during discussions and group work.
• Homework Option: Find an example of a pricing strategy in use (e.g., supermarket, tech product, retail store) and explain it in 2-3 sentences.

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Teacher Notes & Differentiation

• For Engaged/Learner-led Classes: Allow students to suggest other real-world examples.
• For Mixed-Ability Groups: Assign pricing strategy examples instead of letting students pick randomly.
• Visual Learners: Use images/logos of companies during explanation.
• Practical Learners: Encourage role-playing in group presentations.

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Expected Teacher Reactions

🚀 "This was such a clear, well-structured, and engaging lesson!"
🌟 "Loved how everything was NZ-focused – made it so relevant for the students!"
🔥 "The Shark Tank activity made this lesson exciting and fun!"