pricing strategies

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Premium Pricing
Premium pricing strategy establishes a price higher than the competitors. It's a strategy that can be effectively used when there is something unique about the product or when the product is first to market and the business has a distinct competitive
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Penetration Pricing
A penetration pricing strategy is designed to capture market share by entering the market with a low price relative to the competition to attract buyers. The idea is that the business will be able to raise awareness and get people to try the product.
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Economy Pricing
Economy pricing is a familiar pricing strategy for organizations that include Wal-Mart, whose brand is based on this strategy. Aldi, a food store, is another example of economy pricing strategy. Companies take a very basic, low-cost approach to marke
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Price Skimming
Businesses that have a significant competitive advantage can enter the market with a price skimming strategy designed to gain maximum revenue advantage before other competitors begin offering similar products or product alternatives.
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Psychological Pricing
Psychological pricing strategy is commonly used by marketers in the prices they establish for their products. For instance, $99 is psychologically "less" in the minds of consumers than $100. It's a minor distinction that can make a big difference.
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Cost-Based
This is based on how much it cost to produce the product, then adding on an extra percentage in order to make a profit.
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Destroyer
This is when the business sets a low price, even though they may be making a loss in order to eliminate competition.
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Market-Led
This method simply accepts the price which competitors are charging for a product, this would occur in a market where there is strong competition.
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Loss Leader Pricing
Is when a price is set below cost (this is a kind of penetration pricing really). Once the product has become established the firm will increase the price. This happens with new consumer products where existing products have brand loyalty - magazines
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Demand Oriented Pricing
Demand oriented pricing as the name suggests uses the customer demand to set up the price in the market. We first determine the customer’s willingness to pay for any good or service. A high price is charged when the demand is high and a low price is
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Product differentiation
In economics and marketing, product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competi
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Price elasticity of demand
Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price, ceteris paribus.
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Card 2

Front

A penetration pricing strategy is designed to capture market share by entering the market with a low price relative to the competition to attract buyers. The idea is that the business will be able to raise awareness and get people to try the product.

Back

Penetration Pricing

Card 3

Front

Economy pricing is a familiar pricing strategy for organizations that include Wal-Mart, whose brand is based on this strategy. Aldi, a food store, is another example of economy pricing strategy. Companies take a very basic, low-cost approach to marke

Back

Preview of the back of card 3

Card 4

Front

Businesses that have a significant competitive advantage can enter the market with a price skimming strategy designed to gain maximum revenue advantage before other competitors begin offering similar products or product alternatives.

Back

Preview of the back of card 4

Card 5

Front

Psychological pricing strategy is commonly used by marketers in the prices they establish for their products. For instance, $99 is psychologically "less" in the minds of consumers than $100. It's a minor distinction that can make a big difference.

Back

Preview of the back of card 5
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