What are the different pricing strategies in marketing?
Answers
Figuring out how much to charge for your product—for example, determing whether it's more practical to charge by unit or through yearly contracts—is ultimately a strategic planning question.
In fact, the pricing of a product is one of the most important aspects of your marketing strategy, which also includes product, promotion, placement (or distribution) and people.
Generally, pricing strategies include the following:
Cost-plus pricing—simply calculating your costs and adding a mark-up
Competitive pricing—setting a price based on what the competition charges
Price skimming—setting a high price and lowering it as the market evolves
Penetration pricing—setting a price low to enter a competitive market and raising it later
Price bundling—combining products and/or services to increase value, and therefore price