MARKETING Pricing Strategies. Overview. Definition of price Factors that influence the pricing decision Pricing objectives Pricing strategies over the product life cycle Three major pricing strategies and their advantages and disadvantages
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Price perflash drive/memory stick
Number of flash drives/memory sticks demanded
QuantityElasticity of Demand
measure of the sensitivity of demand to changes in prices
not price sensitive - no real change in demand
price sensitive - changes in demand
Price/unit –Variable cost/unit
EX: $0.50 + $0.50 =$1.00 (production cost)
Low price establish product in the market
Elastic demand; Predatory pricing
High price; unique product; appeal to early adopters; Prestige pricing
Recovering high R&D costs
Move inventory; stimulate D; extend product lifePrice Strategies for New Products
Penetration Price Strategy
Skimming Price Strategy
Skimming > Penetration
Cunard launches two new cruise ships.
A cable TV provider moves into a new area and needs to achieve a market share.
Holiday Inns try to fill hotels during winter weekends.
Burger King introduces a new range of value meals.
Nokia launches a new videophone.ExerciseSelect the appropriate pricing strategy. Explain your choice.