Question

In 350 words, describe the various types of pricing strategies and objectives available to global marketers.Provide examples of these strategies.

Answer 1

There are a lot of different pricing strategy that is available for use in business. We can say that it all depends on the product, the market the value proposition and this process is called value pricing. The different available pricing strategies are;-

1. Skimming strategy

In this strategy, the initial price of the product is set high, in relation to the market price of the competition in order to recover some of the cost that has been spent in the development as well as marketing of the product.

2. Penetration strategy

In this strategy, the initial price of the product is set low in comparison to the competition n the expected market price changes in order to be able to enter the market successfully.

3. Predatory pricing

In this pricing strategy, the price of the product is set far below the market price and value in order to clear out the competition from the market.

4. FOB mill strategy

In this pricing strategy the seller quote the selling price of the product at the site it is produced and the buyer then has to bear the charges of selection of transportation and freight.

5. Uniform Delivered Strategy

In this pricing strategy, the same delivered price is quoted to the buyers regardless of the fact that they are in different locations. The charges are borne by the buyer or the company and are constant.

6. One price strategy

In this strategy, the seller offers the same price point to all the customer who buys the same amount and value of the product from the seller.

7. Flexible pricing strategy

In this strategy, the seller charges a different price to the buyers based on their purchase quantity and price point.

8. Single price strategy

In this strategy, a company/seller offers all the different products they own under one single price point.

9. Leader pricing strategy

In this strategy, the seller makes temporary price cuts on particular products in order for them to be marketed more effectively.

10. High low pricing strategy

In this pricing strategy, the company/seller keeps on cutting and increasing the prices of the products in order for them to appear more lucrative as soon as the prices drop a little.