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PRICING STRATEGY

1. New-ProductPricing Strategies

2. Product MixPricing Strategies

3. Price-Adjustment Strategies4. Price Changes

5. Public Policy

and Marketing

Market-Skimming

Pricing:

Market-Penetration

Pricing:.

Product Line Pricing:

Optional product pricing:

Captive product pricing:

By-product pricing:

Product bundle pricing:

Discount and

Allowance Pricing:

Discount :

Allowance:

Segmented pricing:

Psychological pricing

Promotional pricing

setting a high price for a new product to

skim maximum revenues layer by layer

from the segments willing to pay the

highprice; the company makes fewer but

more profitable sales.

Setting a low price for a

new product to attract a

large number of buyers

and a

large market share

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.

The pricing of optional

or accessory products

along with a main

product.

Setting a price for products that

must be used along with a main

product, such as blades

for a razor and games for a

videogame console

Setting a price for products

that must be used along with a

main product, such as blades

for a razor and games for a

videogame console

Combining several

products and

offeringthe bundle at

a reduced price.

A straight reduction

in price on purchases during a stated

period of time or of larger quant

Selling a product or service at two or more

prices, where the difference in prices is not

based on differences in costs.

Pricing that considers the psychology of prices,

not simply the economics; the price says

something about the product

Temporarily pricing products below thelist

price, and sometimes even below cost, to

increase short-run sales.

Geographical Pricing

FOB-origin pricing

Uniform-delivered pricing

Zone pricing

Basing-point pricing

Freight-absorption pricing

Dynamic pricing

Setting prices for customers located in different

parts of the countryor world.

Adjusting prices continually to meet the characteristics

and needs of individual customers and situations.

To lower prices in developing countries, Unilever

developed smaller, more affordable packages that

put the company's premier brandsInternational pricing

Initiating

Price

Changes

Responding to Price Changes

Initiating Price Cuts

Initiating Price Increases

Buyer Reactions

to Price Changes

Competitor Reactions

to Price Changes

Promotional money paid by

manufacturers to retailers in

return for an agreement

to feature the manufacturers

products in some way

Pricing within

Channel Levels

Pricing Across

Channel Levels

Price fixing

Predatory pricing

Sellers must set prices

without talking to

competitors

Selling below cost with

the intention of punishing

a competitor or gaining

higher long-term profits by

putting competitors out of

business

Robinson-Patman Act

prevents unfair price

discrimination by ensuring that

the seller offer the same price

terms to customers at a given

level of trade

Retail (or resale)

price maintenance

Deceptive pricing

is when a manufacturer

requires a dealer to

charge a specific retail

price for its products

occurs when a seller

states prices or price

savings that mislead

consumers or are not

actually available to

consumers

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