Pricing Strategies
• Premium Pricing - This is where a business keeps the price of a product or service high in
order to encourage customers to associate with high quality.
• Penetration Pricing – This is when a product is sold into a market at a low initial price in
order to generate sales before the price is increased.
• economy pricing – This is the deliberate setting of a low price in order to boost sales
• Price skimming – At the launch of a new product there will be less competition in the
marketplace.
• Psychology pricing - This is a customer-based pricing method, relying on consumers
emotional response subjective views and feelings towards specific purchases.
• Captive product pricing – This is a strategy that can apply to products with consumable
supplies.
• Product line pricing – This is the pricing of different products within the same product
range at different price points.
Different ways of promotion
Advertising may be defined as paid promotions through various media by businesses, non-profit
organisations and individuals that are in some way identified in the advertising message and hope to
inform or persuade members of a particular audience.
Different media – advertising primarily involves the mass media, such as television, newspapers, and
the internet.
Online Techniques – online advertisers use many techniques it tries to get the consumer to purchase
their products. They often blend advertising with other elements such as free downloads of music
and films so that the consumer does not realise that they are being targeted
Personal selling is a skilled task; it may require training a sales team and may be one of the more
expensive aspects of the promotional mix.
Public relations cover a firm’s communications and relationships with its public. This includes
customers, supplier’s stakeholders, employees, the government and the general public.
Sales promotions relates to marketing activities. These can include coupons, trade shows, displays,
samples, and other promotional efforts that occur on an irregular basis. They are often short term
and opportunistic.
• Premium Pricing - This is where a business keeps the price of a product or service high in
order to encourage customers to associate with high quality.
• Penetration Pricing – This is when a product is sold into a market at a low initial price in
order to generate sales before the price is increased.
• economy pricing – This is the deliberate setting of a low price in order to boost sales
• Price skimming – At the launch of a new product there will be less competition in the
marketplace.
• Psychology pricing - This is a customer-based pricing method, relying on consumers
emotional response subjective views and feelings towards specific purchases.
• Captive product pricing – This is a strategy that can apply to products with consumable
supplies.
• Product line pricing – This is the pricing of different products within the same product
range at different price points.
Different ways of promotion
Advertising may be defined as paid promotions through various media by businesses, non-profit
organisations and individuals that are in some way identified in the advertising message and hope to
inform or persuade members of a particular audience.
Different media – advertising primarily involves the mass media, such as television, newspapers, and
the internet.
Online Techniques – online advertisers use many techniques it tries to get the consumer to purchase
their products. They often blend advertising with other elements such as free downloads of music
and films so that the consumer does not realise that they are being targeted
Personal selling is a skilled task; it may require training a sales team and may be one of the more
expensive aspects of the promotional mix.
Public relations cover a firm’s communications and relationships with its public. This includes
customers, supplier’s stakeholders, employees, the government and the general public.
Sales promotions relates to marketing activities. These can include coupons, trade shows, displays,
samples, and other promotional efforts that occur on an irregular basis. They are often short term
and opportunistic.
