11– 1
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
i t ’s good and
good for you
Chapter Eleven
Pricing Strategies
11– 2
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Pricing Strategies
•New-Product Pricing Strategies
•Product Mix Pricing Strategies
•Price Adjustment Strategies
•Price Changes
•Public Policy and Marketing
Topic Outline
11– 3
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
New-Product Pricing
Strategies
•Market-skimming
pricing
•Market-
penetration
pricing
Pricing Strategies
11– 4
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
New-Product Pricing
Strategies
Market-skimming pricing is a strategy with high
initial prices to “skim” revenue layers from the
market
•Product quality and image must support the price
•Buyers must want the product at the price
•Costs of producing the product in small volume
should not cancel the advantage of higher prices
•Competitors should not be able to enter the market
easily
11– 5
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
New-Product Pricing
Strategies
Market-penetration pricing sets a low initial
price in order to penetrate the market quickly
and deeply to attract a large number of buyers
quickly to gain market share
•Price sensitive market
•Inverse relationship of production and
distribution cost to sales growth
•Low prices must keep competition out of the
market
11– 6
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product Mix Pricing Strategies
Product
line pricing
Optional-
product
pricing
Captive-
product
pricing
By-product
pricing
Product
bundle
pricing
Product Mix Pricing Strategies
Product line pricing takes into account the
cost differences between products in the
line, customer evaluation of their
features, and competitors’ prices
