Which of the following pricing strategies occurs when a company sells multiple products in the same product category?

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What are the 4 pricing strategies?
What 3 strategies are used for pricing products?
What is Multipoint pricing strategy?
What is bundle pricing with example?

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Marketing

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Pricing Options
Apart from the four basic pricing strategies -- premium, skimming, economy or value and penetration -- there can be several other variations on these.

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Product
A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form.
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Definition: Price is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding and risk taking ability. A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors.

Description: There are several pricing strategies:

Premium pricing: high price is used as a defining criterion. Such pricing strategies work in segments and industries where a strong competitive advantage exists for the company. Example: Porche in cars and Gillette in blades.

Penetration pricing: price is set artificially low to gain market share quickly. This is done when a new product is being launched. It is understood that prices will be raised once the promotion period is over and market share objectives are achieved. Example: Mobile phone rates in India; housing loans etc.

Economy pricing: no-frills price. Margins are wafer thin; overheads like marketing and advertising costs are very low. Targets the mass market and high market share. Example: Friendly wash detergents; Nirma; local tea producers.

Skimming strategy: high price is charged for a product till such time as competitors allow after which prices can be dropped. The idea is to recover maximum money before the product or segment attracts more competitors who will lower profits for all concerned. Example: the earliest prices for mobile phones, VCRs and other electronic items where a few players ruled attracted lower cost Asian players.

These are the four basic strategies, variations of which are used in the industry.

PREV DEFINITION
Pricing Options
Apart from the four basic pricing strategies -- premium, skimming, economy or value and penetration -- there can be several other variations on these.
Read More
NEXT DEFINITION
Product
A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form.
Read More

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What are the 4 pricing strategies?

What are the 4 major pricing strategies? Value-based, competition-based, cost-plus, and dynamic pricing are all models that are used frequently, depending on the industry and business model in question.

What 3 strategies are used for pricing products?

Cost-Based Pricing. Value-Based Pricing. Competition-Based Pricing.

What is Multipoint pricing strategy?

Multipoint pricing occurs when two or more firms compete in two or more national markets and the pricing strategy in one market may have an impact on the rival pricing strategy in another national market.

What is bundle pricing with example?

When price bundling, companies will sell two products together at a lower price than the sum of the individual price of each product. Common bundle pricing examples are cable TV and mobile plans and fast food restaurant value meal combos.