Beruflich Dokumente
Kultur Dokumente
Presented To:
Ma’am Zara Imran
Presented by:
Jeremiah Gill (L-1094)
Ibrahim Ejaz (L-1093)
1- Penetration Pricing
Charging lowest price for the new product. Or offer a
product at very low price. It is also called stay-out
policy.
Aim to:
1. Gain market share quickly.
2. Build customer usage and loyalty.
3. To increase sale in market.
4. To attract large number of buyers.
5. Long-term profitability.
Graph:
When the price of the product is low, the demand of the product
is high. And this is the aim of the company to capture market and
then they increase their products price.
Conditions:
To adopt penetration strategy, there are some
conditions:
1. High elasticity of demand.
2. Cost saving.
3. Best quality product.
4. Potential threat to competitors.
Examples:
1) PTCL Student Package
2) Gillette
3) Android
4) Starbucks
5) Netflix
2- Skimming Pricing
Charging the high price for the new product. It is
opposite to penetration pricing. It is for a short-term
period. After sometime, price can be reduce.
Aim to:
1. Set high price to maximize profit.
2. Buyers must want the product at the price.
3. Quick recovery of development cost.
Segments:
To select the price of the product, we have to divide the
market into two different segments:
1. Where price elasticity of our product is high, the
price of the product will be low.
2. Where price elasticity of our product is low, we can
make the price of the product high.
Conditions:
3. Price elasticity should be low.
4. Check segments according to product elasticity.
5. Flotation of product.
6. Take care of the cost.
7. Research and development.
Examples:
1. Apple
2. Sony
3. Designer clothing
4. Automobile industry
5. Luxurious
3- Economy Pricing
In this strategy, the company’s main focus is
to decrease the production cost and low price
is set for the product to attract the price
conscious consumers.
Overheads like marketing and advertising
share.
Examples:
1. Nirma washing powder.
2. Lipton.
3. Dove.
4. Spaghetti
4- Psychological Pricing
Prices are expressed in a way that attracts more to the
consumer OR the prices lower than a whole number.
Its aim is to attract the customers emotional side.
2- Prestige pricing:
Setting prices higher than normal because lower price will
have a negative impact on sale. For example, company’s
like Rolex, Nike etc. sell their products at higher price
because people associates their products with quality.
Examples:
1. KFC
2. Outfitters
3. J.
4. Mobile phones
5. Laptops
5- Bundle Pricing
Set of goods or services are sold at a lower price than they
would charge if the customer bought all of them separately.
It increases a profit by giving discount to the customer.
Examples:
1. Colgate
2. Pantene
3. McDonald’s
4. Cable television channels
5. Microsoft 365
6- Premium Pricing
Setting the price of the product higher than
the similar competition OR artificially
maintaining a high price for a product. It is
similar to skimming pricing strategy.
This strategy is used to maximize profit in
the freight cost associated from that city to the customers location.
5- Freight Absorption Pricing:
Seller absorbs part of the actual freight charge as an incentive to attract
Examples:
1. Razor and blades
2. Printers and ink cartridges
3. Smartphones and wireless plans
4. Car and petrol
5. Pen and ink
Thank
You!