pricing strategy
. Pricing Strategies:
1.
Penetration Pricing: This pricing strategy is followed by companies with the intention to maximize their market share. They believe that a higher sales volume will lead to lower unit costs & higher long-run profit.
Example: China Mobile Phones in India.This is one of the fastest growing industries in India. China mobile phones are cheap and offer the same features as a expensive mobile from some other well known manufacturer few samples of Chinese mobiles are shown above. Only problem that exist for theChinese mobile phones is that consumer generally have a low quality perception associated with them and hence, do not trust their quality. However, they are well suited to people who want to enjoy features of a high end mobile without having a budget for the same.
2.Predatory Pricing
This pricing strategy is followed with the intention to wipe out the competition
Example: In the year 2003, LG and Samsung along with Reliance came up withRs. 500/- mobile scheme where both handsets along with connections were available for Rs. 500/-. This was something which revolutionized the mobile phone and telecom industry
3.Perceived value Pricing: In this case the pricing is done based on the customer‟s perception about the company and its product. Perceived value is made up of several elements such as buyer‟s image of product performance, the channel deliverables, warranty, quality and even softer attributes such as supplier‟s reputation. Example
: A good example for this kind of pricing is Apple iPhones. They are offeredin price range of Rs. 31,000/- to Rs. 42,500
Thire price is set based on image of brand apple & customer affinity towards it.Comparable mobiles phones from other manufacturers like Sony Ericson, Nokia are offered at relatively cheaper price. For example comparable N series mobiles fromNokia are offered at prices below Rs. 30,000/- (Except for Nokia- N9 & Nokia-8800Carbon). Also, SONYERICSSON
Satio is
1.
Penetration Pricing: This pricing strategy is followed by companies with the intention to maximize their market share. They believe that a higher sales volume will lead to lower unit costs & higher long-run profit.
Example: China Mobile Phones in India.This is one of the fastest growing industries in India. China mobile phones are cheap and offer the same features as a expensive mobile from some other well known manufacturer few samples of Chinese mobiles are shown above. Only problem that exist for theChinese mobile phones is that consumer generally have a low quality perception associated with them and hence, do not trust their quality. However, they are well suited to people who want to enjoy features of a high end mobile without having a budget for the same.
2.Predatory Pricing
This pricing strategy is followed with the intention to wipe out the competition
Example: In the year 2003, LG and Samsung along with Reliance came up withRs. 500/- mobile scheme where both handsets along with connections were available for Rs. 500/-. This was something which revolutionized the mobile phone and telecom industry
3.Perceived value Pricing: In this case the pricing is done based on the customer‟s perception about the company and its product. Perceived value is made up of several elements such as buyer‟s image of product performance, the channel deliverables, warranty, quality and even softer attributes such as supplier‟s reputation. Example
: A good example for this kind of pricing is Apple iPhones. They are offeredin price range of Rs. 31,000/- to Rs. 42,500
Thire price is set based on image of brand apple & customer affinity towards it.Comparable mobiles phones from other manufacturers like Sony Ericson, Nokia are offered at relatively cheaper price. For example comparable N series mobiles fromNokia are offered at prices below Rs. 30,000/- (Except for Nokia- N9 & Nokia-8800Carbon). Also, SONYERICSSON
Satio is