Marketing mix- Pricing

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  • Marketing mix- Pricing
    • Price Skimming
      • New products
      • Initial high prices
      • New technology especially
      • Afterwards then dropped when the product is established
      • Some customers may be put off at high prices
    • Penetration pricing
      • Launching product at low price
        • Attract customers and gain market share
      • Customers expect this price to continue
        • Difficult to raise without losing customers
      • Extension strategy
    • Factors affect pricing decisions
      • Set to cover costs and make a profit
      • Depends on elasticity of demand
      • Stage of life cycle they are in
      • Competitions pricing
    • Other pricing strategies
      • Competitive pricing
        • Monitor competitors prices
      • Pschological pricing
        • .99 so think they are getting a better price
      • Loss leaders
        • products sold at or below cost price


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