PREMIUM PRICING –

 in this strategy, a company produces a high-quality product and

charge it with the highest price.

ECONOMY PRICING –
 A company produces a lower quality product and then charges it with
a low price in this strategy.
GOOD-VALUE PRICING –
 This strategy represents a way to attack the premium pricer in the
industry. When a company utilize this strategy, they communicate to
the market that they have high quality product but charging at a lower
price.

OVERCHARGING –
 This strategy where a company produces a lower quality but charging
products at a high price.
PRODUCT-MIX is the collection of products and services that a company
chooses to offer its market.

PRODUCT-MIX PRICING STRATEGIES

 PRODUCT LINE PRICING –

 this is setting the price steps between various products in a product

line based on cost differences between the product, customer evaluations
of different features, and competitor’s prices.

 OPTIONAL PRODUCT PRICING –

 this is the pricing of optional or accessory products along with a main

product. Organizations utilize the strategy to maximize its turn over
CAPTIVE-PRODUCT PRICING –
 refers to setting a price for products that must be used along with a
main product.

 BY-PRODUCT PRICING –

 this is setting a price for by-products in order to make the main

product’s price more competitive.

 PRODUCT-BUNDLE PRICING –

 this strategy involves combining several products and offering the

bundle at a reduced price. This can promote the sales of products
consumers might not otherwise buy.
PSYCHOLOGICAL PRICING –
This is a pricing approach that considers the psychology of prices and
not simply the economics. In other word, the price is used to say
something about the product.
 GEOGRAPHIC PRICING –
This is a consideration in pricing products or services to customers
located in different parts of the country or world.
FOB (Free on Board) – a geographic pricing strategy in which goods
are placed free on board a carrier; the customer pays the freight
from the factory to destination.
Uniform Delivered Pricing – a geographic pricing strategy in which
the company charges the same price plus freight to all customers,
regardless of their location.
Zone Pricing – a geographic pricing strategy in which the company
set up two or more zones. All customers within a zone pay the same
total price; the more distant zone the higher the price.
Basing Point Pricing – a geographic pricing strategy in which the
seller designates some city as a basing point and charges all
customers the freight cost from that city to the customer location,
regardless of the city from which the good are actually shipped.
Freight-Absorption Pricing – a geographical pricing strategy in
which the company absorb all or part of the actual freight charges in
order to get the business.
Segment pricing – companies often will adjust their basic prices to allow
for differences in customers, products and locations. In segment pricing,
the company sells a product or service at two or more prices, even though
the difference in prices is not based on differences in cost.
Customer Segment Pricing – different customers pay different prices
for the same product or services.
Product Form Pricing – versions of the product are priced differently,
but not according to differences in their cost.
Location Pricing – different locations are priced differently, even
though the cost of offering each location is the same.
Time Pricing – prices by the season, the month, the day and even
the hour.
Freight Absorption Pricing – a geographic pricing strategy in which
the company absorbs all or part of the actual freight charges in order
to get the business
Cost Based Pricing – this is a pricing strategy wherein firms takes into
account the cost of production and distribution, and then decide on a
mark up which they would like for profit to come to their final pricing
decision.

Discount Pricing – this is used to reward customers for certain

responses, such as early payment of bills, volume purchases and off
season buying.

Cash Discount – this is a price reduction offered to buyers who

pay their bills promptly.
Quantity Discount – as often given, this price reduction is
offered to buyers who buy large volumes of product or services.
Functional Discount – also called as a trade discount, this price
reduction is given by the wholesaler to a retailer.
Seasonal Discount – this is a price reduction to buyers who buy
merchandise or service out of season. It allows the seller to keep
production steady during an entire year.
Cost Plus Pricing – in this strategy, the firm add a percentage to cost as
profit margin to come to their final pricing

Penetration Pricing – this is a strategy in pricing wherein an

organization sets a low price to increase sales and market share. When
market share has been captured, the firm may well then increase their
price slowly.

Skimming Pricing – marketers in this strategy sets an initial high price

and then slowly lowers the price to make the product available to a wider
market. The objective of doing this is to skim profits of the market layer
by layer. This is most often seen in technology product.

Competition Pricing – marketers sets a price in comparison with the

competitors in this strategy. They have three options to consider and
these are basically to lower the price, price the same or price higher with
that of the competitors