Pricing Strategies
New Product Pricing strategies:
 Market Skimming Pricing:
Introducing a new product at high initial price to skim revenues from the market.
 Market Penetration Pricing:
Introducing a new price at lower initial price to penetrate the market quickly and
deeply.
Product Mix Pricing Strategies
 Product Line Pricing
Setting prices across an entire product
line.
Price Adjustment Strategies
 Discount & Allowance pricing
Reducing prices to reward customer
responses against a condition such as
paying early or promotion the product
or buying in a special occasion.
 Optional Pricing
 Segmented pricing
Pricing optional or accessory products
Offering different prices to different
sold with main product.
group of customers.
 Captive-Product pricing
 Psychological pricing
Pricing products that must be used with Adjusting price to influence customer
the main product.
psychologically.
 By-product pricing
 Promotional pricing
Pricing low value by-products to get rid Reducing prices temporarily to increase
of them.
short-run sales.
 Product Bundle pricing
 Geographic pricing
Pricing bundles of products sold
Adjusting prices to suit the requirement
together.
of different location and regions.
 Dynamic pricing
---------------------------------------Adjusting prices continually based on
market demand and situations
 International pricing
---------------------------------------Adjusting prices for international
markets