The topic is about pricing strategies. Most important about the market-skimming pricing and market-penetration pricing

1. Pricing Strategies
Presented by: Tayyaba Latif

2. Price
Price is the amount of money charged
for a product or service. It is the sum
of all the values that consumers give
up in order to gain the benefits of
having or using a product or service.
Price is the only element in the
marketing mix that produces
revenue; all other elements represent
costs

3. Three Powerful Forces: Image,
Competition, and Value
 Price Conveys Image
 Competition and Price
 Focus on Value

4. Price Conveys Image
 High prices frequently convey the idea
of quality, prestige, and uniqueness.
 Small business owners underpriced
their goods and services, believing
that low prices are the only way they
can achieve a competitive advantage.
They fail to identify the extra value,
convenience, service, and quality they
give their customers.

5. Competition and Price
 Prices is tracking competitors' prices
regularly. Businesses that offer
customers extra quality value, service,
or convenience can charge higher
prices as long as customers recognize
the "extras" they are getting.

6. Focus on Value
 Creating value means making a
positive difference, a tangible impact,
a specific contribution to the market.
 Entrepreneurs facing rapidly rising
costs in their businesses should
consider the following strategies:
• Communicate with customers.
• Focus on improving efficiency in the
company.
• Consider absorbing the cost increases.

7. New-product pricing
 Market-skimming pricing
 Market-penetration pricing

8. Market-skimming Pricing - Setting a high
price for a new product to skim maximum
revenues layer by layer from the segments
willing to pay the high price: the company
makes fewer but more profitable sales.
New-product pricing

9. New-product pricing
Market-penetration Pricing - Setting a
low price for a new product in order to
attract a large number of buyers and a
large market share.

10. Pricing Established Goods and
Services
i. Odd Pricing a pricing technique that
sets prices
that end in odd numbers to create the
psychological impression of low
prices.
ii. Price lining a technique that greatly
simplifies
the pricing function by pricing different
products in a product line at different
price points, depending on their
quality, features, and cost.

11. iii. Leader pricing
A technique that involves marking down
the normal price of a popular item in an
attempt to attract more customers who
make incidental purchases of other
items at regular prices.
iv. Zone / Geographic pricing
A technique that involves setting
different prices for customers located in
different territories because of different
transportation costs.

12. v. Delivered pricing
A technique in which a firm charges all
of its customers the same price
regardless of their location.
vi. FOB Factory(Free On Board )
A pricing method in which a company
sells merchandise to customers on the
condition that they pay all shipping
costs.
vii. Discounts or Markdowns
Reductions from normal list prices.

13. viii. Opportunistic Pricing
A pricing method that involves charging
customers unreasonably high prices
when goods
or services are in short supply.
ix. Bundling
A pricing method that involves grouping
together several products or services,
or both, into a package that offers
customers extra value at a special
price.

14. x. Optional Product Pricing
A technique that involves selling the base
product for one price but selling the options
for it at a much higher markup. (Airlines will
charge for optional extras such as
guaranteeing a window seat or reserving a
row of seats next to each other.)
xi. Captive-Product Pricing
Low price are offered for the core product,
but high prices are placed
on captive products. This attracts customers
to the core product with a low price but
allows sellers to make a profit off
the captive products, which are necessary to
use the product.. (printer, ink and paper )

15. Thank you