Presentation on marketing Presented to: Madam Ammara Presented by: Razeena Ameen
New product pricing strategies: There are two strategies: market-skimming pricing Market-penetration pricing
Market-skimming strategy: Setting high price for new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales
Conditions for market skimming pricing Its quality must support its high price The cost of producing product should not be so high that it cancel the advantage of charging more Competitor should not be able to under cut the high price
Market penetration pricing Setting a low price for new product in order to attract a large no of buyers and large market share
Conditions for market penetration pricing Market must be highly price sensitive so that low price produces more market growth Production and distribution cost must fall as sales volume increases Low price should be maintained
Product mix pricing strategies Product line pricing Optional product pricing captive product pricing By-product pricing Product bundle pricing
Product line pricing 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 pricing.
Optional product pricing: The pricing of optional or accessory products along with the main products
Captive product pricing: Setting a price for products that must be used along with a main product
By product pricing: Setting a price for by-products in order to make the main product’s price more competitive
Product bundle pricing: Combining several products and offering the bundle at a reduced price