11. Price-Advanced pricing strategies
Type Lecture
Completed
https://app.jungleai.com/deck/QOgjWF2GKr7DytALZK6z/marketing---ch111-flashcards-multiple-
Flashcards choice-questions-quiz?r=m9iaHSxCYeYwBXX4JWoHrSYNOqez2U
Prac
Main points chapter 11
👉🏻 1. New product pricing strategies
1.1 Market skimming pricing
1.2 Market penetration pricing
2. Product mix pricing strategies
3. price adjustment strategies
4. Price changes
4.1 Initiating price changes
4.2 Responding to price changes
1. New product pricing strategies
Main strategies for pricing new products
11. Price-Advanced pricing strategies 1
, 1.1 Market skimming pricing
Initially setting high prices to “skim” revenue layer by layer from customer
segments in line with their willingness to pay
→High initial price
→Gradually lowered over time
Conditions for market-skimming to make sense:
Product quality and image must support the higher price
• Enough buyers must want the product at that price
• Budget-conscious consumers will wait for lowered
price rather than buying competing product
Differentiated product – Competitors should not be able
to enter the market easily
The production cost of the small volume at high price
cannot be too high
1.2 Market penetration pricing
⇒ involves setting a low (initial) price for a new product in order to attract a
large number of buyers and (quickly & deeply) win a large market share
→Then try to turn customers into loyal, long-term customers
(→Low prices equal more demand and boost the customer
base)
(→Once the company is established, it can increase the
prices or try to upsell and cross-sell)
Wanneer je in een fastfoodrestaurant een hamburger bestelt en de
Cross selling voorbeeld: medewerker vraagt:
"Wilt u daar frietjes en een drankje bij?"
11. Price-Advanced pricing strategies 2
Type Lecture
Completed
https://app.jungleai.com/deck/QOgjWF2GKr7DytALZK6z/marketing---ch111-flashcards-multiple-
Flashcards choice-questions-quiz?r=m9iaHSxCYeYwBXX4JWoHrSYNOqez2U
Prac
Main points chapter 11
👉🏻 1. New product pricing strategies
1.1 Market skimming pricing
1.2 Market penetration pricing
2. Product mix pricing strategies
3. price adjustment strategies
4. Price changes
4.1 Initiating price changes
4.2 Responding to price changes
1. New product pricing strategies
Main strategies for pricing new products
11. Price-Advanced pricing strategies 1
, 1.1 Market skimming pricing
Initially setting high prices to “skim” revenue layer by layer from customer
segments in line with their willingness to pay
→High initial price
→Gradually lowered over time
Conditions for market-skimming to make sense:
Product quality and image must support the higher price
• Enough buyers must want the product at that price
• Budget-conscious consumers will wait for lowered
price rather than buying competing product
Differentiated product – Competitors should not be able
to enter the market easily
The production cost of the small volume at high price
cannot be too high
1.2 Market penetration pricing
⇒ involves setting a low (initial) price for a new product in order to attract a
large number of buyers and (quickly & deeply) win a large market share
→Then try to turn customers into loyal, long-term customers
(→Low prices equal more demand and boost the customer
base)
(→Once the company is established, it can increase the
prices or try to upsell and cross-sell)
Wanneer je in een fastfoodrestaurant een hamburger bestelt en de
Cross selling voorbeeld: medewerker vraagt:
"Wilt u daar frietjes en een drankje bij?"
11. Price-Advanced pricing strategies 2
