Page 34 - MARKETING MIX

PRICING

THE PRICING STRATEGY

In the previous discussion, we dwelled on the general approaches in price setting. Now,

we continue the next part on pricing strategy. The following will give you some ideas

on the pricing strategy which can be adopted by a company in different situations:

New Product Pricing Strategy

Pricing strategies usually change as a product passes through its life cycle, and the

introductory stage is especially challenging, as several options exist:

There are four (4) strategies:

Market Prestige / Premium Pricing

Tourism and hotels or restaurants seeking to position themselves as luxurious and

elegant, entering the market with a high price to support this position.

Lowering the price would reposition the business, resulting in failure to attract the

target market.

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