1. Presentation on marketing
Presented to:
Madam Ammara
Presented by:
Razeena Ameen

2. New product pricing strategies:
There are two strategies:
market-skimming pricing
Market-penetration pricing

3. Market-skimming strategy:
Setting high price for new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales

4. Conditions for market skimming pricing
Its quality must support its high price
The cost of producing product should not be so high that it cancel the advantage of charging more
Competitor should not be able to under cut the high price

5. Market penetration pricing
Setting a low price for new product in order to attract a large no of buyers and large market share

6. Conditions for market penetration pricing
Market must be highly price sensitive so that low price produces more market growth
Production and distribution cost must fall as sales volume increases
Low price should be maintained

7. Product mix pricing strategies
Product line pricing
Optional product pricing
captive product pricing
By-product pricing
Product bundle pricing

8. Product line pricing
Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features and competitors pricing.

9. Optional product pricing:
The pricing of optional or accessory products along with the main products

10. Captive product pricing:
Setting a price for products that must be used along with a main product

11. By product pricing:
Setting a price for by-products in order to make the main product’s price more competitive

12. Product bundle pricing:
Combining several products and offering the bundle at a reduced price