pricing strategies - 2020

Economy Pricing - Picture Example

Selling a product cheaper than competitors because a company is not paying for promotion and other marketing tasks.

This is the stage of the product life cycle where marketers want a product to stay for the longest period of time.

growth

Price Skimming - Picture Example

Charging a high price for products initially, then dropping in price over time. Ultra High Definition 4K TV's are currently very expensive, but will drop over time as newer technologies come out.

Premium Pricing - Picture Example

Charging a price for a product based on perceived quality or status.

An American company doing business in China adds shipping costs, tariffs, and exchange rate considerations to its pricing.

Geographical Pricing

Floor-level George Strait concert tickets sell for $450 in Los Angeles, but when he performs in Memphis, the same tickets will sell for $200 each.

Geographical Pricing

Geographical Pricing - Picture Example

Having to charge a different price for products based on where the customer lives or company makes the product.

Penetration Pricing - Picture Example

Initially charging a lower price than competitors to steal away business and increase competition.

An automobile manufacturer known for its luxurious, high-end vehicles can set much higher-than-average prices for its cars.

Premium pricing

This pricing strategy sets higher-than-average prices to suggest status and high quality to the consumer

Premium pricing

One store sets prices that end in .97; another store sets prices that end in .00.

Psychological pricing

Pricing techniques that help create an illusion for customers

Psychological pricing

Psychological Pricing - Picture Example

Setting the price of a product at an uneven amount, E.G. $7.89. Also setting the price really high, or really low for a product may influence how a person perceives the quality of a product.

Promotional Pricing - Picture Example

When a company marks down the price of a product to briefly increase sales. E.G. All beds 15% off.

This is the stage of the product life cycle where the price is reduced, manufacturing costs are reduced, and the product may be discontinued.

decline

This is the stage of the product life cycle where either the price of the product is reduced OR the product is revised.

maturity

A pricing policy used to encourage as many people as possible to buy a product and penetrate the market

penetration pricing

This pricing strategy is generally used in conjunction with sales promotions wherein prices are reduced for a short period of time

promotional pricing

Odd-even pricing ($14.99), and prestige pricing are examples of

psychological pricing

A pricing policy that sets a very high price for a new product

skimming pricing