Atmajaya University

By
Stefanus MS, MM
Outline
 New Product Pricing Strategies
 Market Skimming Pricing

 Marketing Penetration Pricing

 Product Mix Pricing Strategies

 Product Line Pricing

 Optional product Pricing

 Captive Product Pricing

 By-Product Pricing

 Product Bundle Pricing

Outline (Continued)
 Price Adjustment Strategies

 Discount & Allowance Pricing

 Segmented Price

 Psychological Price

 Price Changes

 Initiating Price Changes

 Price Cuts
 Price Increase
 Buyer reaction to Price Changes
 Competitor reaction to Price Changes

 Responding to Price Changes

New Product Pricing Strategies
Market Skimming Product
 Market Penetration Product
Pricing
 Initial High Price Pricing
 Image of High Price • Low Price to attract buyers
 High barrier for Competitor
• Price sensitive Market
Entry
 Cost of Producing small qty • Cost decrease as
can not be so high
volume increase
 Hitachi Plasma TV 72”: • Mie Sedap, Dell Computer
 1999 150juta  2004 Rp 20
juta
Product Mix Pricing Strategies
Strategy Descriptions
Product Line Pricing Setting Product Steps between product line
items
Optional Product Pricing Pricing Optional Products sold with the
main products
Captive Product Pricing Pricing Products that must be used with the
main product
By-Product Pricing Pricing low-value by-products to get rid of
them
Product Bundle Pricing Pricing bundles of products sold together

Hitachi TV Vacation HP Cartridge

Packages
Price Adjustment Strategies
 Discount & Allowance Pricing
 Discount : Straight reduction during certain period

 Allowance: Promotional

 Segmented Pricing
 Business Class & Economy Class

 7 million prices in the world markets

 Psychological Price
 A $ 1000 bottle perfume  $ 3 worth of scent

 Harga mingguan / harian untuk pembelian kredit

 Promotional Pricing

 Geographical Pricing

 International Pricing
Initiating Price Changes
Price Cuts
 Excess Capacity
 Failing Market
 Low cost strategy
Price Increase
 Increase Profit
 Rising Cost
Buyer reaction to Price Changes
 Down for New Model? More price down?
 Increase for better quality?
Competitor reaction to Price Changes
 Match Price
 Lower Price
 Increase Price
Responding Price Changes
Has competitor cut Hold current price; monitor
Price? competitor’s price

Y
N
Will lower price negatively
affect our market share and Reduce Price
profits?
Raised Perceived
N Quality
Y

Improve Quality and

Can/should effective action be Increase Price
taken?
Y Launch low Price
“Fighting Brand”