PRICING STRATEGIES

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PRICING STRATEGIES by Mind Map: PRICING STRATEGIES

1. Geographical Pricing

1.1. FOB - origin pricing

1.2. Uniform - delivered pricing

1.3. Zone pricing

1.4. Basing - point pricing

1.5. Freigh - absorption pricing

2. Strong Bow: many flavors such as honey and apple

3. Captive Product Pricing

3.1. Razors and razor blades

4. 1. New Product Pricing Strategies

4.1. Marketing - Skimming Pricing

4.1.1. Example: For instance, in October Samsung Galaxy C9 Pro, the company's first smartphone with 6GB RAM, has received price cut in India it is now retailing at for Rs. 29,900. Back in June, the model had received its first price cut which brought the price down to Rs. 31,900 from launch price of Rs. 36,900

4.2. Marketing - Penetration Pricing

4.2.1. Example: Price for online English course which is about 500.000 for everyone

5. 2. Product Mix Pricing Strategies

5.1. Product Line Pricing

5.2. Optional Product Pricing

5.2.1. Selling second hand phones with phone accessories

5.3. By - Product Pricing

5.3.1. When meat is processed for human consumption, the by product can be used as food for dog/cat

5.4. Product Bundle Pricing

5.4.1. A collection of Phuot items is sold in one go

6. 3. Price Changes

6.1. Initiating Price Changes

6.1.1. Initiating Price Cuts

6.1.1.1. Lower price for a holiday tour despite the same product with others

6.1.2. Initiating Price Increases

6.1.2.1. Slight increase in price of marsk face in this time can increase profits

6.2. Responding to Price Changes

6.2.1. Buyers Reaction to Price Changes

6.2.1.1. Buyers buy more watermelon when its price drops drasticly

6.2.2. Competitors Reaction to Price Changes

6.2.2.1. Reactions may be strong and aggressive (for instance reducing prices further when price cuts have been initiated by a company) if the competitor is the market leader, or an aggressive challenger.

7. 4. Price Adjustment Strategies

7.1. Discount & Allowance Pricing

7.1.1. Reward customers for certain responses, such as the early payment of bills, volume purchases and off-season buying

7.2. Segmented Pricing

7.2.1. Price fo CGV tickets is cheaper for students but higher for others

7.3. Psychological Pricing

7.3.1. Retail prices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or £2.98.

7.4. Dynamic Pricing

7.4.1. Airline prices going up due to high demand Hotel rooms on discount when travelling during an off season

8. 5. Public Policy & Marketing

8.1. Pricing across Channel Levels

8.1.1. For example, in the case of the iPhone K, Apple could not legally require resellers like Best Buy and Walmart to sell the phone at a specific price. This was made apparent when the iPhone 5C was released and Walmart decided to sell it for less than the price suggested by Apple.

8.2. Pricing within Channel Levels

8.2.1. Price fixing is when a multiple companies within one shared market decide to all price their products or services at the same value. But that's illegal