This document discusses various pricing strategies that businesses can use to set prices for their products and services. It identifies different types of pricing strategies such as price skimming, market penetration pricing, premium pricing, economy pricing, bundle pricing, value-based pricing, and dynamic pricing. It also discusses pricing methods that businesses use to calculate prices, including cost-oriented pricing which is based on the costs to produce and market a product, and market-oriented pricing which sets prices based on competitor prices.

2. INTRODUCTION:
• Pricing is the process whereby a business sets the price at which it will sell its
products and services, and may be part of the business's marketing plan.
• The needs of the consumer can be converted into demand only if the consumer
has the willingness and capacity to buy the product.
• In setting prices, the business will take into account the price at which it could
acquire the goods, the manufacturing cost, the marketplace, competition, market
condition, brand, and quality of product.

4. TYPES OF PRICING STRATEGIES:
PRICE SKIMMING:
• Skimming involves setting high prices when a product is introduced and then
gradually lowering the price as more competitors enter the market. This type of
pricing is ideal for businesses that are entering emerging markets.
MARKET PENETRATION PRICING:
• Pricing for market penetration is essentially the opposite of price skimming.
Instead of starting high and slowly lowering prices, you take over a market by
undercutting your competitors. Once you develop a reliable customer base, you
raise prices.

5. TYPES OF PRICING STRATEGIES:
PREMIUM PRICING:
• Premium pricing is for businesses that create high-quality products and market
them to high-income individuals. The key with this pricing strategy is developing a
product that is high quality and that customers will consider to be high value.
ECONOMIC PRICING:
• An economy pricing strategy involves targeting customers who want to save as
much money as possible on whatever good or service they’re purchasing. Like
premium pricing, adopting an economy pricing model depends on your overhead
costs and the overall value of your product.

6. TYPES OF PRICING STRATEGIES:
BUNDLE PRICING:
• When companies pair several products together and sell them for less money
than each would be individually, it’s known as bundle pricing. Bundle pricing is a
good way to move a lot of inventory quickly.
VALUE BASED PRICING:
• Value-based pricing is similar to premium pricing. In this model, a company bases
its pricing on how much the customer believes the product is worth.
DYNAMIC PRICING:
• Dynamic pricing allows you to change the price of your items based on the market
demand at any given moment.

7. PRICING METHODS:
• The Pricing Methods are the ways in which the price of goods and services can be
calculated by considering all the factors such as the product/service, competition,
target audience, product’s life cycle, firm’s vision of expansion.
TYPES OF PRICING METHODS:
1.Cost Oriented Pricing Method.
2.Market Oriented Pricing Method.
COST ORIENTED PRICING METHOD:
• Cost-oriented pricing is the most basic method of pricing which is based on the
cost incurred by the retailer in making the product available to the customer is the
basis used for the cost-oriented valuation.

8. ADVANTAGES:
• Straightness.
• Acceptability.
• Rate of return on investment.
• Price stability.
MARKET ORIENTED PRICING:
• It is also known as a competition-based strategy, market-oriented pricing
compares similar products being offered on the market. Then, the seller sets the
price higher or lower than their competitors depending on how well their own
product matches up.