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Types of Pricing Strategies: New Product Pricing Strategy

This document discusses various pricing strategies for new products and adjusting prices. It outlines two new product pricing strategies: market-skimming pricing which sets a high initial price that is gradually lowered, and penetration pricing which sets a lower initial price to attract customers. It also discusses strategies for adjusting prices like discount pricing, segmented pricing based on customers, and dynamic pricing that changes based on demand. The document provides an overview of different approaches to setting and adjusting prices for new and existing products.

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316 views3 pages

Types of Pricing Strategies: New Product Pricing Strategy

This document discusses various pricing strategies for new products and adjusting prices. It outlines two new product pricing strategies: market-skimming pricing which sets a high initial price that is gradually lowered, and penetration pricing which sets a lower initial price to attract customers. It also discusses strategies for adjusting prices like discount pricing, segmented pricing based on customers, and dynamic pricing that changes based on demand. The document provides an overview of different approaches to setting and adjusting prices for new and existing products.

Uploaded by

Goli Here
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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TYPES OF PRICING STRATEGIES:

NEW PRODUCT PRICING STRATEGY:

 Market-skimming pricing: is used to boost income when a new product or


carrier is launched. A pricing approach in which the producer sets a high
introductory price to attract buyers with a strong desire for the product and
the resources to buy it, and then gradually reduces the price to attract the
next and subsequent layers of the market

 Penetration pricing strategy: 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. The lower price helps a new product or service
penetrate the market and attract customers away from competitors.
Market penetration pricing relies on the strategy of using low prices initially
to make a wide number of customers aware of a new product.

PRODUCT MIX PRICING:


Product line pricing (various levels: 200rs, 400rs, 600rs)
Optional- feature pricing (sunroof, theft protection)
Captive-product pricing (require the use of ancillary products: razors, films)
Two part pricing (fixed fee plus variable usage fee: telephone service)
By product pricing: (production of certain goods often result in by products: meat
and fat sausage)
Product bundling pricing (offer products only in a bundle: product plus service
PRICE ADJUSTMENT STRATEGIES INCLUDES

DISCOUNT AND ALLOWANCE PRICING


A kind of pricing strategy that provides discount to consumer so they can
purchase more

SEGMENTED PRICING
Different customers paying different prices for the same product.
PSYCHOLOGICAL PRICING
To build a psychological or subconscious effect on consumers
PROMOTIONAL PRICING
In order to shape customer loyalty, the prices are set low for a shorter period of
time.

GEOGRAPHICAL PRICING
Setting the price according to consumer’s location
DYNAMIC PRICING
Charging superior fee at the time of superior demand)
INTERNATIONAL PRICING:
The price in the market is the change fee of items and services expressed in
phrases of currency.

Price changes:
• Price cuts (to boost sales and shares)
• Price increases

Price cuts occur due to: • Excess capacity • Increased market share Price increase
from: • Cost inflation • Increased demand • Lack of supply
Reduce price to match competition – Maintain price but raise the perceived value
through communications – Improve quality and increase price – Launch a lower-
price “fighting” brand

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