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Pricing strategies - Coggle Diagram
Pricing strategies
Choosing a strategy
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stage in product life cycle- varies at each life stage, depends on comp in each stage
cost and need to make a profit- period of low pricing to gain sales, long term may need to cover these costs
Online selling
more comp for mortar firms competing with ecommerce, some adapted some struggled
more choice for consumers, may have reduced prices
price comparrision sites provide customer with info, can see range, availabilty and price of most goods
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Premium pricing
ability to charge higher price, without lsoing sales
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disadvanatage
only if brand is seen as better quality, better brand image
Price skimming
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disdvantage-
only shortv lived, rival products may appear, demand and price falls
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Penetration
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advantages
customers may remain loyal when price is restored, increasing profit
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