Pricing Strategies

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Department of Management Faculty of Management and Human Resource Development

SHAF 1013
PRINCIPLE OF MARKETING
CHAPTER 11 PRICING STRATEGIES
GROUP 10 L
ECTURER: Dr. Inda Sukati

Contents
Introduction ................................................................................................................................ 3 Market Skimming Prices .......................................................................................................... 3 Market Penetrating Pricing ...................................................................................................... 4 Product Mix Pricing Strategies ............................................................................................... 5 Product Line Pricing ................................................................................................................. 5 Optional Product Pricing .......................................................................................................... 5 Captive-Product Pricing ........................................................................................................... 6 By-Product Pricing ................................................................................................................... 6 Product Bundle Pricing ............................................................................................................ 6 Price Adjustment Strategies ........................................................................................................ 7 Discount and Allowance Pricing ............................................................................................... 7 Segmented Pricing................................................................................................................... 8 P sychological Pricing ............................................................................................................... 8 Promotional Pricing ................................................................................................................. 9 eographical Pricing.............................................................................................................. 10 Dynamic Pricing..................................................................................................................... 11 International Pricing .............................................................................................................. 12 Price Changes............................................................................................................................ 12 I nitiating Price Changes ......................................................................................................... 13 Initiating Price Cuts............................................................................................................ 13 Initiating Price Increases .................................................................................................... 13 Buyer Reaction to Price Changes ....................................................................................... 14 Competitor Reaction to Price Changes ............................................................................... 14 Responding to Price Change .................................................................................................. 15 Public Policy and Pricing ............................................................................................................ 16 Pricing Within Channel Level ................................................................................................. 16 Price Fixing ........................................................................................................................ 16 Predatory Pricing ............................................................................................................... 17 Pricing Across Channel Levels...
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