 Penetration pricing strategy: is a marketing strategy used by businesses to

attract customers to a new product or service by offering a lower price

during its initial offering. The lower price helps a new product or service
penetrate the market and attract customers away from competitors. Market
penetration pricing relies on the strategy of using low prices initially to make
a wide number of customers aware of a new product.

PRODUCT MIX PRICING:

Product line pricing (various levels: 200rs, 400rs, 600rs)
Optional- feature pricing (sunroof, theft protection)
Captive-product pricing (require the use of ancillary products: razors, films)
Two part pricing (fixed fee plus variable usage fee: telephone service)
By product pricing: (production of certain goods often result in by products: meat
and fat sausage)
Product bundling pricing (offer products only in a bundle: product plus service

PRICE ADJUSTMENT STRATEGIES INCLUDES

DISCOUNT AND ALLOWANCE PRICING

A kind of pricing strategy that provides discount to consumer so they can purchase
more

SEGMENTED PRICING
Different customers paying different prices for the same product.
PSYCHOLOGICAL PRICING
To build a psychological or subconscious effect on consumers
PROMOTIONAL PRICING
In order to shape customer loyalty, the prices are set low for a shorter period of
time.

GEOGRAPHICAL PRICING
Setting the price according to consumer’s location
DYNAMIC PRICING
Charging superior fee at the time of superior demand)
INTERNATIONAL PRICING:
The price in the market is the change fee of items and services expressed in phrases
of currency.

Price changes:

• Price cuts (to boost sales and shares)

• Price increases

Price cuts occur due to: • Excess capacity • Increased market share Price increase
from: • Cost inflation • Increased demand • Lack of supply
Reduce price to match competition – Maintain price but raise the perceived value
through communications – Improve quality and increase price – Launch a lower-
price “fighting” brand