pricing

The amount of money for which a thing is sold.The financial expression of the value of the product.

The only marketing mix that generates revenue

&can be changed most quickly.

pricing strategies

Premium pricing:quality-high price-high

Approach is suitable where substantial competitive advantage is there

Penetration pricing:quality-high price-low

Objective: to gain market share.

Increase in price when market share is gained.

Economy pricing:quality:low price:low

• The cost of marketing and manufacture is kept at a minimum.

Price skimming:quality:low price:high

•Substantial competitive advantage

•Tends to attract new competitors

•Supply increases

•Price falls

Psychological pricing: responding on psychologyProduct line pricing: different range of products or services & the pricing reflects the benefits of parts of the range.Optional pricing: increase the amount the customer spends once they start to buy. For example airlines will

charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other

Captive product pricing: where products have complements,charge premium price where the consumeris captured.

Product bundle pricingPromotional pricingGeographical pricingValue pricing

Psychological pricing: responding on psychologyProduct line pricing: different range of products or services & the pricing reflects the benefits of parts of the range.Optional pricing: increase the amount the customer spends once they start to buy. For example airlines will

charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other

Captive product pricing: where products have complements,charge premium price where the consumeris captured.

Product bundle pricingPromotional pricingGeographical pricingValue pricing