Pricing Strategies
What is Price skimming?
strategy in which good and services are sold at high prices
psychological
internal processes and external influences that shape how individuals make decisions related to the purchase
Threat of new entrants
the potential for new companies to enter an industry and disrupt existing businesses
Building trust and loyalty
a customer's commitment to a brand or company, leading to repeat business and advocacy, often fueled by positive experiences and perceived value.
Marketing
the process of promoting and selling products or services by understanding customer needs and communicating value to attract and retain customers
What is Competitive Pricing?
An integral part of any business strategy.
Social
a form of business striking a balance between social objectives and financial goals, situated somewhere between profit-maximizing business and the non-profit sector.
Bargaining power of buyers
the strength a customer has to influence prices, quality, and terms of purchase
effective communication
ensuring messages are clearly and concisely conveyed, understood, and acted upon, fostering collaboration, and promoting positive relationships.
Goods
tangible items or products that are produced, bought, or sold in the market, capable of being physically touched, moved, and used.
What is Dynamic Pricing?
To adjust the prices of their product and services based on changing market conditions.
cultural
how a society's shared values, beliefs, traditions, and norms influence purchasing decisions and consumption patterns.
Bargaining power of suppliers
the concept that suppliers can apply pressure to companies by lowering product quality or availability, or raising product prices.
personalization
the act of tailoring a service or a product to accommodate a specific individual or group.
Product Planning
the process of developing successful products to offer your customers
What is Premium Pricing?
setting the price of a product higher than the competitors
Personal
your occupation, age and life cycle stage, economic situation, lifestyle, and personality and self-concept
Threat of new substitutes
the potential for customers to switch to alternative products or services that fulfill the same needs, impacting an industry's profitability and competitiveness.
exceptional customer service
building meaningful connections with customers, anticipating their needs and delivering personalized experiences that leave a lasting impression
Marketing Information Management
the process of gathering, organizing, storing, analyzing, and reporting marketing data to inform and improve marketing decisions.
What is Bundle pricing?
Involves selling a combination of products or services together at a lower price than they were purchased seperately.
Economic
how individuals and groups make decisions about purchasing, using, and disposing of goods and services, focusing on the motivations, influences, and processes that drive these choices.
competitive rivalry
the intensity of competition among existing firms within an industry
creating positive customer experience
the collection of services an organization provides to its clients to create a consistently positive interaction.
Promotion
the act or fact of being raised in position or rank