4. Premium Pricing
• High Price is used as a defining criterion.
• Works where a strong competitive advantage
exists for the company.
Example: Cars (Jaguar, BMW, Ferrari)and Gillette
Blades.
5. Penetration Pricing
• Price set to “penetrate the market”
• Low price to secure high volumes
• This is done when a new product launched
• Price will be raised when the promotion
period is over and market share achieved.
Example: Micromax canvas , Housing Loans.
6. Economy Pricing
• No-Frill price.
• Margins are wafer thin.
• Overheads like Marketing and Advertising costs
are very low.
• Targets the mass market and high market share
Example: Friendly wash detergents, Nirma, Local
Tea Producers.
7. Skimming Pricing
• High price, Low volumes
• Skim the profit from the market
• Suitable for products that have short life cycle
Example: Earliest mobile phones , Digital
Technology , VCRs, etc.