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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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