PRICING 

STRATEGIES

By: Tinashe, Kimora, Cdykka, Jahiel, Stephen

 •  Penetration Pricing

•  Psychological Pricing
  TYPES OF
•  Market Orientated Pricing
 PRICING
STRATEG IES •  Differential Pricing
•  Predatory Pricing
 PENETRATION PRICE

Penetration pricing 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 to 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.
 Psychological pricing is the practice
of using the power of psychology to
push consumers to spend. It's a joint
PSYCHOLOGICAL effort of pricing, marketing, and sales
PRICING to build an attractive offer that
captures consumers attention and
makes a product so desirable that
a shopper can't wait another day to
buy it.
 MARKET ORIENTED PRICING 

Market orientation is an approach to business that

prioritize identifying the needs and desires of
consumers by creating products and services that
satisfy them. 
 DIFFERENTIAL PRICING

Differential pricing is a sophisticated method

that benefits almost all businesses if used
correctly. It enables you to reach a wider
audience, increase your sales, and generate
more revenue. It is crucial to develop a
differential pricing strategy carefully.
Otherwise, you may end up generating less
revenue.
                                 
   PREDATORY PRICING

Predatory pricing is defined in economic terms as a price reduction

that is profitable only because of the added market power the predator
gains from eliminating, disciplining or otherwise inhibiting the
competitive conduct of a rival or potential rival.