Register now or log in to join your professional community.
Penetration Pricing : Which the organization will set a low price in order to compete in a new market once acquire a market share then it can raise the price.
Skimming Pricing : You set a high price for your product in order to get a market share with the high price and then lower the prices slowly in order to have the most profit out of your product . An example for that would be the iPhone.Competition Pricing : Pricing your product in order to compete with your competitors.Psychological Pricing : That is based on studying the psychology of the customer and market and price your product upon the result.
Premium Pricing : You set a really high price in order to put your product as an exclusive product.
Cost Pricing : Basically it's "Cost of production + Cost of marketing + A profit margin"
cost price
ur benefit and income cost
computation price
These are the conventional three types of pricing strategies:
I don´t see, but I think anyone mentioned the "Adjustment strategy price".
It´s used when we need to change our prices in promotions, discounts, segment prices circunstances.
Pricing is the most important element of the marketing mix, as price is the only element of the marketing mix, which generates a turnover for the organisation. The remaining elements of the4Ps cost firms money.
Marketing Mix Product - It costs to produce and design a product
Marketing Mix Place - It costs to distribute a product and
Marketing Mix Promotion - It costs to promote products.
Marketing mix Price must support the other three elements of the marketing mix. Getting Pricing correct can be tricky; pricing must reflect supply and demand relationship and Pricing a product too high or too low could mean a loss of sales for the business.
Pricing Factors
Pricing strategies should take into account the following factors into account:
1. Fixed and variable costs.
2. Competition
3. Company objectives
4. Proposed positioning strategies.
5. Target group and willingness to pay
An organisation can adopt a number of pricing strategies, the pricing strategy will usually be based on corporate objectives.
There are various strategies for pricing, there of them are below, most of already answered by other Professionals
Promotional Pricing.
Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free), money off vouchers and discounts. Promotional pricing is often the subject of controversy. Many countries have laws which govern the amount of time that a product should be sold at its original higher price before it can be discounted. Sales are extravaganzas of promotional pricing!
Geographical Pricing.
Geographical pricing sees variations in price in different parts of the world. For example rarity value, or where shipping costs increase price. In some countries there is more tax on certain types of product which makes them more or less expensive, or legislation which limits how many products might be imported again raising price. Some countries tax inelastic goods such as alcohol or petrol in order to increase revenue, and it is noticeable when you do travel overseas that sometimes goods are much cheaper, or expensive of course.
Value Pricing.
This approach is used where external factors such as recession or increased competition force companies to provide value products and services to retain sales e.g. value meals at McDonalds and other fast-food restaurants. Value price means that you get great value for money i.e. the price that you pay makes you feel that you are getting a lot of product. In many ways it is similar to economy pricing. One must not make the mistake to think that there is added value in terms of the product or service. Reducing price does not generally increase value.
I fully agree with the answers been added by EXPERTS...............Thanks.
Pricing is one of the four elements of the marketing mix, along with product, place and promotion. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies, depending on their own unique marketing goals and objectives.
Premium PricingPremium pricing strategy establishes a price higher than the competitors. It's a strategy that can be effectively used when there is something unique about the product or when the product is first to market and the business has a distinct competitive advantage. Premium pricing can be a good strategy for companies entering the market with a new market and hoping to maximize revenue during the early stages of the product life cycle.
Penetration PricingA penetration pricing strategy is designed to capture market share by entering the market with a low price relative to the competition to attract buyers. The idea is that the business will be able to raise awareness and get people to try the product. Even though penetration pricing may initially create a loss for the company, the hope is that it will help to generate word-of-mouth and create awareness amid a crowded market category.
Economy Pricing
Economy pricing is a familiar pricing strategy for organizations that include Wal-Mart, whose brand is based on this strategy. Aldi, a food store, is another example of economy pricing strategy. Companies take a very basic, low-cost approach to marketing--nothing fancy, just the bare minimum to keep prices low and attract a specific segment of the market that is very price sensitive.
Price SkimmingBusinesses that have a significant competitive advantage can enter the market with a price skimming strategy designed to gain maximum revenue advantage before other competitors begin offering similar products or product alternatives.
Psychological PricingPsychological pricing strategy is commonly used by marketers in the prices they establish for their products. For instance, $99 is psychologically "less" in the minds of consumers than $100. It's a minor distinction that can make a big difference.
Thanks
Fully agree with colleague Rami Abbas answer
Totally agree with rami abbas.
