Pricing

strategies

11 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

SKIM PENETRATE

New Product
strategies
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
 Skim

Copyright © 2011 Pearson Education, Inc.

Publishing as Prentice Hall
Penetrate

Copyright © 2011 Pearson Education, Inc.

Publishing as Prentice Hall
 Product mix
pricing strategies

Product line Optional Captive

pricing product pricing product pricing

By-product Product bundle

pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Product mix
pricing strategies

Product line Optional Captive

pricing product pricing product pricing

By-product Product bundle

pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Product mix
pricing strategies

Product line Optional Captive

pricing product pricing product pricing

By-product Product bundle

pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
 Product mix
pricing strategies

Product line Optional Captive

pricing product pricing product pricing

By-product Product bundle

pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
 Product mix
pricing strategies

Product line Optional Captive

pricing product pricing product pricing

By-product Product bundle

pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Product mix
pricing strategies

Product line Optional Captive

pricing product pricing product pricing

By-product Product bundle

pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Price adjustment strategies
Discount and
Segmented
allowance
pricing
pricing

Psychological Promotional
pricing pricing

Geographic Dynamic International

pricing pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Price adjustment strategies
Discount and
Segmented
allowance
pricing
pricing

Psychological Promotional
pricing pricing

Geographic Dynamic International

pricing pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Price adjustment strategies
Discount and
Segmented
allowance
pricing
pricing

Psychological Promotional
pricing pricing

Geographic Dynamic International

pricing pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Segmented
pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Price adjustment strategies
Discount and
Segmented
allowance
pricing
pricing

Psychological Promotional
pricing pricing

Geographic Dynamic International

pricing pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Reference
prices

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Price adjustment strategies
Discount and
Segmented
allowance
pricing
pricing

Psychological Promotional
pricing pricing

Geographic Dynamic International

pricing pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Promotional
pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Price adjustment strategies
Discount and
Segmented
allowance
pricing
pricing

Psychological Promotional
pricing pricing

Geographic Dynamic International

pricing pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Geographic
pricing
FOB Origin

Uniform delivered

Zone

Basing point

Freight absorption

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Price adjustment strategies
Discount and
Segmented
allowance
pricing
pricing

Psychological Promotional
pricing pricing

Geographic Dynamic International

pricing pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Dynamic pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Price adjustment strategies
Discount and
Segmented
allowance
pricing
pricing

Psychological Promotional
pricing pricing

Geographic Dynamic International

pricing pricing pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

International
pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Price changes

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Price Cuts
Increases

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Price cut
reactions-consumers

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Price increase
reactions-consumers

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Price change
reactions-competitors

Copyright © 2011 Pearson Education, Inc.

Publishing as Prentice Hall
Responding to
Price Changes Reduce price to match
competition

Maintain price but raise the

perceived value
Price
Improve quality and
Change increase price

Launch a lower-price brand

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Public policy
and pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Pricing within
channels

Price Fixing

Predatory
Pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Pricing across
channel levels

Price
Discrimination

Price
Maintenance

Deceptive
pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2012 Pearson Education, Inc.

Publishing as Prentice Hall