Pricing Strategies

•Only “P” in marketing mix that generates revenue
•Complex process determines value consumers will exchange for offering

Pricing Supports Marketing Objectives



Pricing Strategy: For-Profit

•Economy
- Low price, low quality
- Volume
•Premium
- High price, high quality
- Profit, image
•Penetration
- Good quality, low price
- Volume
•Price Skimming
- Good quality, high price
- Initial volume and profit




Pricing Strategies: Non-Profit

•Market incentive
•Prices low to encourage use – Public Transit
•Cost recovery
- Full or partial
•Maximize revenue potential
•Need volume

Alternate Pricing Strategy

•Promotional
•Short term
•Geographical
•Variations demand and operational costs
•Value
•Recession, competition

The Marketing Mix Revisited


Last modified: Tuesday, August 14, 2018, 8:33 AM