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Pricing Strategies in Marketing Mix

The document discusses the role of price in the marketing mix, highlighting its importance in influencing customer perception and buying decisions. It outlines various pricing strategies such as penetration, skimming, and competition pricing, emphasizing how these strategies can impact market share and profitability. The document concludes that selecting the right pricing strategy is crucial for maximizing revenue potential for businesses.

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jeanairizemalabanan
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2 views17 pages

Pricing Strategies in Marketing Mix

The document discusses the role of price in the marketing mix, highlighting its importance in influencing customer perception and buying decisions. It outlines various pricing strategies such as penetration, skimming, and competition pricing, emphasizing how these strategies can impact market share and profitability. The document concludes that selecting the right pricing strategy is crucial for maximizing revenue potential for businesses.

Uploaded by

jeanairizemalabanan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

7P’s of

Marketin
gMix
Group 5
Objecti
• Explain the role ofve
Price in the marketing Mix

• Identify and describe different pricing strategies

• Show how pricing affects customer perception and buying


decisions

• Highlight the impact of pricing on market share and profitability


What is
price?
Price is the third “P” in the Marketing Mix.

It refers to the amount of money a customer


pays in exchange for the benefits of a product or
service, determined by what buyers are willing to
pay, sellers are willing to accept, and competitors
are charging.
Pricing
examples Setting prices low to attract customers

and gain market share, then increasing

them later.

Example: A new beauty salon charges less

than competitors to attract customers, then

slowly raises prices after building a loyal

client base.
II. Types of Pricing
Strategies
1. Penetration Pricing 7. Psychological Pricing

2. Skimming Price 8. Optimal Pricing

9. Cost plus Pricing


3. Competition Pricing
10. Cost based Pricing
4. Product the Pricing
11. Value based Pricing
5. Bundle Pricing

6. Premium Pricing
1. Penetration pricing
Starts with a very low price to

quickly attract customers and gain

market share. Once enough

people know and trust the product,

the business slowly increases

the price.
2. Skimming price

Starts with a high price

when your product is new,

unique, or in demand, then

lower the price over

time.
3. Competition Pricing
Set your price based on what competitors are charging, either

matching, slightly higher, or slightly lower.


4. Product Line Pricing

Offer different versions

of the same product at

different prices based on

quality or features
5. Bundle Pricing

Sell two or more products


together at a lower total
price than if the customer
bought them separately.
6. Premium Pricing

Keep prices high to


show that your product
is luxury, exclusive, or
top quality.
7. Psychological Pricing
Make prices look cheaper by using amounts like ₱999 instead of

₱1,000.
8. Optimal Pricing
Finding the perfect price point
that maximizes both sales and
profit. This usually requires
market research, sales testing,
and understanding customer
demand.
9. Cost-Plus Pricing
Set the price by adding a fixed percentage profit on top of the

product’s cost.
10. Cost-Based Pricing
Decide the price based

only on how much it costs

to make the product plus

your desired profit, ignoring

market demand.
[Link]-Based Pricing

Set the price based on

how much customers think

your product is worth, not

just the cost to make it.


Importance of
Pricing
strategies
Several factors affect a small business’s
revenue potential, and one of the most important is
the pricing strategy chosen by the owner. The right
strategy helps determine the price that maximizes
profit from products or services. Setting prices
requires considering a wide range of factors to
ensure competitiveness and profitability.

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