© Pricing strategies <ul><li>Premium pricing </li></ul><ul><ul><ul><li>Uses a high price, but gives a good product/service...
<ul><li>Price skimming </li></ul><ul><ul><ul><li>where prices are high - usually during introduction </li></ul></ul></ul><...
<ul><li>Optional product-pricing </li></ul><ul><ul><ul><li>e.g. optional extras - BMW famously under-equipped </li></ul></...
<ul><li>Geographical pricing </li></ul><ul><ul><ul><li>different prices for customers in different parts of the world </li...
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Pricing E Mktg 2010

Published on: Mar 4, 2016
Published in: Business      Entertainment & Humor      
Source: www.slideshare.net


Transcripts - Pricing E Mktg 2010

  • 1. © Pricing strategies <ul><li>Premium pricing </li></ul><ul><ul><ul><li>Uses a high price, but gives a good product/service exchange e.g. Singapore Airlines, The Ritz Hotel </li></ul></ul></ul><ul><li>Penetration pricing </li></ul><ul><ul><ul><li>offers low price to gain market share - then increases price </li></ul></ul></ul><ul><ul><ul><li>e.g. Mobile Phone vendors - to attract new clients </li></ul></ul></ul><ul><li>Economy pricing </li></ul><ul><ul><ul><li>placed at ‘no frills’, low price </li></ul></ul></ul><ul><ul><ul><li>e.g. Soups, spaghetti, beans - ‘economy’ brands </li></ul></ul></ul>
  • 2. <ul><li>Price skimming </li></ul><ul><ul><ul><li>where prices are high - usually during introduction </li></ul></ul></ul><ul><ul><ul><li>e.g new albums or films on release </li></ul></ul></ul><ul><ul><ul><li>ultimately prices will reduce to the ‘parity’ </li></ul></ul></ul><ul><li>Psychological pricing </li></ul><ul><ul><ul><li>to get a customer to respond on an emotional, rather than rational basis </li></ul></ul></ul><ul><ul><ul><li>.e.g $29.95, not $30 ‘price point perspective </li></ul></ul></ul><ul><li>Product line pricing </li></ul><ul><ul><ul><li>rationale of a product range </li></ul></ul></ul><ul><ul><ul><li>e.g. Star Wars Trilogy $75, individual DVD $37 </li></ul></ul></ul><ul><li>Pricing variations </li></ul><ul><ul><ul><li>‘ off-peak’ pricing, early booking discounts,etc </li></ul></ul></ul><ul><ul><ul><li>e.g Mercure Motel offers a ‘weekend package’ for couple as an incentive to book through ‘slow’ period </li></ul></ul></ul>
  • 3. <ul><li>Optional product-pricing </li></ul><ul><ul><ul><li>e.g. optional extras - BMW famously under-equipped </li></ul></ul></ul><ul><li>Captive product pricing </li></ul><ul><ul><ul><li>products that complement others </li></ul></ul></ul><ul><ul><ul><li>e.g Gillette razors (low price) and blades (high price) </li></ul></ul></ul><ul><li>Product-bundle pricing </li></ul><ul><ul><ul><li>sellers combine several products at the same price </li></ul></ul></ul><ul><ul><ul><li>e.g software, books, CDs. </li></ul></ul></ul><ul><li>Promotional pricing </li></ul><ul><ul><ul><li>HMV offering “Top 20 under $20” </li></ul></ul></ul>
  • 4. <ul><li>Geographical pricing </li></ul><ul><ul><ul><li>different prices for customers in different parts of the world </li></ul></ul></ul><ul><ul><ul><li>e.g.Include shipping costs, or place on PLC </li></ul></ul></ul><ul><li>Value pricing </li></ul><ul><ul><ul><li>usually during difficult economic conditions </li></ul></ul></ul><ul><ul><ul><li>e.g. Value menus at McDonalds </li></ul></ul></ul>

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