PRICING PRODUCTS: PRICING STRATEGIES

1
PRICING PRODUCTS PRICING STRATEGIES

• New-product pricing strategies
• Price-adjustment strategies
• Price changes

2
New-Product Pricing Strategies

• Pricing an imitative new product - premium
  pricing strategy, economy pricing strategy,
  good-value pricing strategy, overcharging pricing
  strategy
• Pricing an innovative product - market-skimming
  pricing, market-penetration pricing (product
  line, optional-product , captive-product,
  by-product, product-bundle)

3
Price-Adjustment Strategies

• Discount pricing and allowances - cash discounts,
  quantity discounts, functional discounts,
  seasonal discounts, allowances
• Segmented pricing - customer-segment,
  product-form, location, time
• Psychological pricing
• Promotional pricing
• Value pricing
• Geographical pricing - FOB-origin, uniform
  delivered, zone, basing-point, freight-absorption,
  international

4
Price Changes

• Initiating price changes
• initiating price cuts, initiating price
  increases, buyer reactions to price changes,
  competitor reactions to price changes
• Responding to price changes