Scribd
Upload
2 views

Week7

The document outlines various pricing strategies for new products, including market-skimming and market penetration pricing. It also discusses product mix pricing strategies such as product line pricing and optional-product pricing, as well as pricing adjustment strategies like discounts and psychological pricing. Additionally, it covers geographical pricing strategies including FOB-origin pricing and uniform-delivered pricing.

Uploaded by

Bayar Sama
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
2 views

Week7

The document outlines various pricing strategies for new products, including market-skimming and market penetration pricing. It also discusses product mix pricing strategies such as product line pricing and optional-product pricing, as well as pricing adjustment strategies like discounts and psychological pricing. Additionally, it covers geographical pricing strategies including FOB-origin pricing and uniform-delivered pricing.

Uploaded by

Bayar Sama
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Pricing

Bayar M. Mohamad Ali


Agricultural Economies and Marketing
28/11/2023
New Products Pricing Strategies
• Market-Skimming Pricing:
Setting a high price for a new product to skim maximum revenues.

• Market Penetration Pricing:


Setting a low price for a new product in order to attract a large number of buyers
and a large market share.
Product Mix Pricing
Strategy
• 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’ prices.
• Optional-product pricing: The pricing of optional or accessory
products along with a main product.
• Captive-product pricing: Setting a price for products that must be
used along with a main product, such as blades for a razor and games for a
video-game console.
• 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.
Pricing Adjustment Strategies

Discount: A straight reduction in price on purchases during a stated period


of time or of larger quantities.
Segmented pricing: Selling a product or service at two or more prices,
where the difference in prices is not based on differences in costs.
Psychological pricing: Pricing that considers the psychology of prices
and not simply the economics; the price is used to say something about the
product.
Promotional pricing: Temporarily pricing products below the list price,
and sometimes even below cost, to increase short-run sales.
Geographical Pricing
FOB-origin pricing: A geographical pricing strategy in which
goods are placed free on board a carrier; the customer pays the freight
from the factory to the destination.
Uniform-delivered pricing: A geographical pricing strategy in
which the company charges the same price plus freight to all
customers, regardless of their location.
Zone pricing: A geographical pricing strategy in which the
company sets up two or more zones. All customers within a zone pay
the same total price; the more distant the zone, the higher the price.
Base-point pricing: A geographical pricing strategy in which the
seller designates some city as a basing point and charges all customers
the freight cost from that city to the customer.
Freight-absorption Pricing: A geographical pricing strategy in
which the seller absorbs all or part of the freight charges in order to get
the desired business.
Thank
You

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy