Pricing Strategies Matrix

Pricing – International Pricing Setting prices in international markets can be a challenge. Companies must consider: economic conditions, currency exchange rates, and the international business climate.

Pricing Strategies Economy Pricing: – The costs of marketing and promoting are kept to a minimum. – Gives the market an inferior but economical alternative for existing competitions

Pricing Strategies Penetration: – Setting the price as low as possible to quickly enter the market and gain market share. – Illegal forms: dumping

Pricing Strategies Skimming: – The practice of setting the price of a new product as high as possible. – It generates revenue quickly to pay for the cost – It works best when competition is weak or non- existent

Pricing Strategies Premium Pricing: – Charges a high price where there is a unique brand – Used where a substantial competitive advantage exists