Pricing strategy

1. pricing
The amount of money for which a thing is sold.
The financial expression of the value of the product.
The only marketing mix that
generates revenue
&
can be changed most quickly.

2. pricing strategies

3. Premium pricing:
quality-high
price-high
Approach is suitable where substantial
competitive advantage is there
Penetration pricing:
quality-high
price-low
Objective: to gain market share.
Increase in price when market share is gained.

4. Economy pricing:
quality:low
price:low
• The cost of marketing and manufacture is kept at a minimum.
Price skimming:
quality:low
price:high
•Substantial competitive advantage
•Tends to attract new competitors
•Supply increases
•Price falls

5. Psychological pricing: responding on psychology
Product line pricing: different range of products or services
& the pricing reflects the benefits
of parts of the range.
Optional pricing: increase the amount the customer spends
once they start to buy. For example airlines will
charge for optional extras such as guaranteeing
a window seat or reserving a row of seats next
to each other
Captive product pricing: where products have complements,
charge premium price where the consumer
is captured.
Product bundle pricing
Promotional pricing
Geographical pricing
Value pricing

6. Psychological pricing: responding on psychology
Product line pricing: different range of products or services
& the pricing reflects the benefits
of parts of the range.
Optional pricing: increase the amount the customer spends
once they start to buy. For example airlines will
charge for optional extras such as guaranteeing
a window seat or reserving a row of seats next
to each other
Captive product pricing: where products have complements,
charge premium price where the consumer
is captured.
Product bundle pricing
Promotional pricing
Geographical pricing
Value pricing