1 / 17

Pricing Strategies

Pricing Strategies. Chapter: 11 Lec : 8a. New Product Pricing Strategies. Prices change as the product passes through its lifecycle Market- Skimming Pricing Market Penetration Pricing. New Product Pricing Strategies. Market-skimming pricing

aquene
Télécharger la présentation

Pricing Strategies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Pricing Strategies Chapter: 11 Lec: 8a

  2. New Product Pricing Strategies • Prices change as the product passes through its lifecycle • Market- Skimming Pricing • Market Penetration Pricing

  3. New Product Pricing Strategies • 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. e.g. Sony- latest technologies e.g. Apple- Ipad e.g. Mobile phones

  4. Apple’s Ipad

  5. New Product Pricing Strategies • 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 - highly price sensitive market - production cost must be low, as large volumes will be produced e.g. Al-Falah offered credit card with low rates

  6. Credit Card

  7. Product Mix Pricing Strategies • Product Line Pricing Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices e.g. ‘Service’ different prices for different shoes e.g. small medium large size of bottles

  8. Product Line Pricing

  9. Product Mix Pricing Strategies • Optional product pricing The pricing of optional or accessory products along with the main product - Ipod – headphones - Refrigerator – ice makers 0

  10. Optional Product Pricing

  11. Product Mix Pricing Strategies • Captive- Product Pricing Setting a price for products that must be used along with a main product. - How much to charge for the basic service and how much to charge for the variable usage e.g. blades for razors (razors cheap, blades expensive) e.g. film for camera e.g. entry fee for park- (interesting rides extra ticket) e.g. Cinema ticket (food items extra from inside)

  12. Captive- Product Pricing

  13. Product Mix Pricing Strategies • By- Product Pricing Setting a price for by-products in order to make the main product’s price more competitive

  14. Product Mix Pricing Strategies • Product Bundle Pricing Combining several products and offering the bundle at a reduced price. e.g. Fast-food restaurant deals vacation packages

  15. Bundle pricing

  16. Price Adjustment Strategies • Discount and Allowance Pricing Discount A straight reduction in price on purchases during a stated period of time. - cash discounts e.g. pepsi 5 Rs. - quantity discount (Thailand) - Functional Discount (out of season) e.g. airline tickets e.g. Generation end of summer sale

  17. Price Adjustment Strategies • Allowance Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way -trade in allowance: return an old item to get a new one at a cheaper price - promotional allowances (PTC on sale of DunHill)

More Related