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Friday, August 14, 2009

Pricing Strategies for New Product

There are three Pricing Strategies for New Product
1. Prestige Pricing
2. Market Skimming
3. Market Penetration

Now let's see which I should explain...

Anyway, the Market Skimming and Market Penetration is the same as which you had included in the Product Life Cycle. Remember when in the "Introduction Stage"? It carries the same meaning. So, no need to worry about those two.

1. Prestige Pricing
- Setting high prices to position a product at the upper or luxury end of market
- Producing a high quality and charging the highest price.
- For example, Mercedes Benz and Rolex

Why they are considered as Prestige Pricing strategies?
This is because both brands are branded goods which have high quality and standards.
That is why you won't find them selling in Putatan. LOL.
Mostly you will find it in where? Town area.

2. Market Skimming
- Setting high prices at the launch stage and lowering slowly as the product becomes mature. (Same in PLC right?)
- Most product are in high demand in the early stage of the life cycle.
- That is why using Market Skimming may lead to profit maximization.
- For example, Handphones

3. Market Penetration
- Setting at lower price to get maximum sales and market share.
- Increase price slightly in the future.
- For example, (ehhhh...... ) haha!

Happy Reading!

1 comment:

xoxo said...

I like your music playist while me looking up for some info.