Running head: MARKETING STRATEGY 1

Marketing Strategy
Name
Institution
MARKETING STRATEGY 2

Pricing strategy may be defined to mean the ways that corporations apply to price their

merchandise and services. Most corporations regardless of whether they are large or small

determine their prices depending on the cost of production such as advertising expenses, labor

and a profit. The paper focuses on particular pricing strategies with their relevant examples as

discussed below.

One of the strategies used by corporations is premium pricing strategy; which is applied

on products which have an advantage over other products that may be on the market. The

strategy ideally aims at convincing the market that the product has more value that can be

imagined. For example, when apple products came on the market, they use premium pricing

strategy and was able to change many people’s perception on electronics.

The other strategy is penetration pricing; in this strategy, the manufacture tends to set the

price of a product at a lower price than the other available products with an aim of attracting

customers to give the product a try. Much as the corporation may operate at a loss, in the long

run they would earn a reasonable customer base required. For example, TECNO mobile used the

strategy in the African market to penetrate the market and later they were able to return to

normal market prices.

The other strategy I have encountered is the economy pricing; here the corporation is able

to set a price for the product to earn a minimum profit. This is done through reducing on the cost

of production and prepare themselves an extremely small profit. For instance, TECNO Mobile

initially used the same strategy in order to sell more products and hence recover the required

profits from the quantity sold.