pricing strategies
DESCRIPTION
These are the latest pricing strategist present in marketing sector according to the survey,conducted by One of the Business News Paper of India.TRANSCRIPT
Presented By:NaveenReddy K
MD1320
• A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others.
Types of Pricing Strategies
• Premium Pricing • Penetration Pricing• Economy Pricing • Skimming Pricing
Premium Pricing
• High Price is used as a defining criterion.• Works where a strong competitive advantage
exists for the company.Example: Cars (Jaguar, BMW, Ferrari)and Gillette Blades.
Penetration Pricing
• Price set to “penetrate the market”• Low price to secure high volumes• This is done when a new product launched• Price will be raised when the promotion
period is over and market share achieved.Example: Micromax canvas , Housing Loans.
Economy Pricing
• No-Frill price.• Margins are wafer thin.• Overheads like Marketing and Advertising costs
are very low.• Targets the mass market and high market share
Example: Friendly wash detergents, Nirma, Local Tea Producers.
Skimming Pricing
• High price, Low volumes• Skim the profit from the market• Suitable for products that have short life cycle
Example: Earliest mobile phones , Digital Technology , VCRs, etc.
Thank You