About Lesson
There are several pricing strategies for marketers to consider:
- Cost-Plus Pricing: Adds a standard markup to the cost of the product.
- Value-Based Pricing: Pricing is based on the value the product offers to consumers rather than its cost.
- Skimming Pricing: Setting a high price initially and then lowering it over time. Often used for innovative products.
- Penetration Pricing: Setting a low initial price to attract a large number of customers quickly and secure market share.
- Competitive Pricing: Setting a price based on what competitors charge.
- Bundle Pricing: Combining several products and offering the bundle at a reduced price.
- Freemium Pricing: Offering basic features for free and charging a premium for advanced features.
- Dynamic Pricing: Adjusting prices continually based on algorithms, often seen in airline and hotel industries.
- Psychological Pricing: Setting prices that have psychological impact, e.g., $9.99 instead of $10.
- Geographical Pricing: Setting prices based on geographic location, considering shipping, taxes, and demand variations.
- Promotional Pricing: Temporarily reducing prices to increase sales or reduce inventory.
- Tiered Pricing: Offering a product or service at several different price points.
- Premium Pricing: Setting a high price to reflect the product’s exclusivity and high-quality nature.
Join the conversation