TAKE AWAY: Product Market Strategies Pricing Strategies And Policies

1. Product
Marketing
Rida Zaman
P r i n c i p l e s o f M a r k e t i n g M a n a g e m e n t
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2. Things
to Discuss
Key takeaways:
• Product Market Strategies
• Pricing Strategies And Policies
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3. Product Market
Strategies
R i d a Z a m a n
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4. Product Market
Strategies
• A product market strategy draws
from the ultimate vision of the
product.
• It states where the product will
end up.
• By setting a product strategy,
you can determine the direction
of your product efforts.
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5. Product Market
Strategies
• Similar to making effective use of a
map, you first need a destination,
and then you can plan your route.
• Just as a business has a strategic
vision of what it wants to be when it
grows up, the product has its own
strategy and destination.
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6. Product Market
Strategies
• The product strategy enables
the company to focus on a
specific target market and
feature set, instead of trying to
be everything to everyone.
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7. Elements of
A Product
Strategy
When defining your product strategy be sure to
answer the following questions.
• Who are you selling to?
Define your target customer or market. Identify
whom you are selling to, and what that market
looks like.
• What are you selling?
Describe how potential customers will perceive
your product compared to competitive
products. Understand what makes your product
unique in the market.
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8. Elements of
A Product
Strategy
When defining your product strategy be sure to
answer the following questions.
• What value you provide to your customers?
Determine what problems your product solves
for customers. You cannot be everything to
everyone within a particular market, but you
can help to solve specific problems.
Create a value proposition to position the value
you provide and the benefits that customers
will receive with your solution.
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9. Elements of
A Product
Strategy
When defining your product strategy be sure to
answer the following questions.
• How will you price your product?
State how you will price the product. Include its
perceived value and a pricing model.
• How will you distribute your product?
Describe how you will sell your product, and
how your target market will acquire your
product.
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10. Example: Product Strategy
HERE IS A BRIEF EXAMPLE OF A PRODUCT
STRATEGY.
Your product strategy will vary, and will
probably be longer, but should follow the theme
of the five questions above:
We build QUALITY KITCHEN HARDWARE for
residential kitchen customers.
Our customers are YOUNG NORTH AMERICAN
families who want kitchen hardware that can
stand the wear and tear of young children.
They are interested in materials that ARE SAFE
FOR CHILDREN AND ECO-FRIENDLY.
We sell our products through a RETAIL CHANNEL.
Our products are PRICED PER UNIT and are
considered “high-end” hardware solutions.
1. What Are You Selling?
2. Who Are You Selling To?
3. What Value You Provide To Your
Customers?
4. How Will You Distribute Your
Product?
5. How Will You Price Your Product?
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11. Creating Your
Product
Strategy
• To create your product strategy, start
with identifying the
• Market Problems you would like to
solve.
• This includes Interviewing your target
market
• Understanding the competitive
landscape
• Identifying how you will differentiate
yourself.
• Your product strategy will change over
time as you learn more about your
market, and as (if) you decide to enter
different markets.
• Listening to your market and developing
your product strategy is a circular process;
as you learn more, you will evolve your
product strategy and the problems you
solve.
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12. Power of The Product
Strategy
The power of a product strategy comes from
what you define as well as what you
exclude.
• By identifying a particular target market in
your product strategy, you are also
excluding other markets.
• This helps your company to understand
which projects fall outside the product
strategy and distract from strategic goals.
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13. Pricing Policies
& Strategies
R i d a Z a m a n
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14. The policy of a
company or
business that
guides the price
setting of its
goods and
services that are
offered for sale.
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Pricing Policies&Strategies
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Pricing
Strategy
• Pricing strategy refers to method
companies use to price their products or
services.
• The price of the products and services are
set on the basis their expenses
• They add on a certain percentage so they
can make a profit.
• There are several different pricing strategies
to fulfil their objectives
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16. Types of
Pricing
Strategies
Penetration Pricing
Skimming Pricing
Competition Pricing
Economy Pricing
Bundle Pricing (Combo)
Psychological Pricing
Premium Pricing
One Price Policy
Discounting Pricing
Discriminatory Pricing
Promotional Pricing
Product Line Pricing
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17. Penetration Pricing is a marketing strategy used by businesses
to attract customers to a new product or service by offering a
lower price during its initial offering. ... Market penetration
pricing relies on the strategy of using low prices initially to
make a wide number of customers aware of a new product
Example:
Netflix
Netflix is the perfect example of penetration pricing done right.
We have often heard people complaining about their Netflix
subscription prices going up or their one month of free
subscription ending. Nevertheless, despite occasional
grumbling, people are completely fine with paying the higher
subscriptions for the unending flow of good media content.
1. Penetration Pricing
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18. Skimming pricing also known as skim pricing it is a pricing
strategy in which a firm charges a high initial price and then
gradually lowers the price to attract more price-sensitive
customers.
2. Skimming Pricing
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19. 3. COMPETITION PRICING
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20. 4. ECONOMY PRICING
It is a volume-based pricing
strategy wherein you price goods low and
gain revenue based on the number of
customers who purchase your product
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21. 5.BUNDLE PRICING
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22. 6. PSYCHOLOGICAL PRICING
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23. 7.PREMIUM PRICING
Premium pricing is reserved for 5-star hotels,
first-class airline tickets, and other products
that give the customer the perception of
being of the highest quality.
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24. 8. ONE PRICE POLICY
all customers pay the same price for
any given item of merchandise
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25. 9. DISCOUNTING PRICING
Here you mark down the prices of
your merchandise. The goal of a
discount pricing strategy is to
increase customer traffic, clear
old inventory from your business,
and increase sales
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26. 10. DISCRIMINATORY PRICING
charges customers
different prices for the
same product or service
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27. 11. PROMOTIONAL PRICING
It is a marketing technique
wherein the price of a product is
kept reduced for a short period
to build customer loyalty and
swell sales volume, and then
increased later on
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28. 12. PRODUCT LINE PRICING
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29. 1. Selecting The
Pricing Objective
Setting Pricing Policy
2. Determining Demand
3. Estimating Costs
4. Analyzing
Competitors’ Costs,
Prices, And Offers
5. Selecting A
Pricing Method 6. Selecting Final Price
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30. Thank You
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