TOPIC 1:Pricing Strategies (Required)

The readings suggest there are certain strategies for pricing new products, which is decidedly more difficult than adjusting prices to existing products. The new product pricing approaches are:

• Skimming
• Penetration
• Everyday low prices

The pricing approaches discussed for existing products are:

• Cost plus
• Markup
• Markdown
• Odd-even pricing
• Prestige pricing
• Price lining
• Demand backward pricing
• Leader pricing
• Sealed bid pricing
• Going-rate pricing
• Price bundling
• Captive pricing
• Product mix pricing
• Two-part pricing
• Promotional pricing

There is no shortage of pricing approaches, and as customers, we are exposed to all of them at some time or another in our purchasing processes.

Choose one of the pricing approaches and discuss the product, the pricing approach, and why you think it is the most appropriate approach for that particular product given your consumer characteristics. Be sure you understand the definition of your approach before tackling this topic.

Many of you will be tempted to use promotional pricing since it is the easiest to demonstrate. Sopromotional pricing is not "for sale" (pun intended). Pick one of the other approaches for this topic.. Remember, there are no rights or wrongs in this topic. Each of us as consumers can view pricing differently.

Reading references:

https://open.lib.umn.edu/principlesmarketing/part/chapter-8-using-marketing-channels-to-create-value-for-customers/

https://open.lib.umn.edu/principlesmarketing/part/chapter-15-price-the-only-revenue-generator/