Question

Discuss in brief the various pricing strategies used by marketers. Formulate suitable pricing strategy For following products: 1) foldable Mobile Phone 2) Electric car

Answer 1

Pricing is one of the popular elements of marketing mix of an organization operating in manufacturing sector. It is equally important for services business. Pricing strategies can be defined as follows:

1) Skimming: It is utilized by companies when they have new products with innovation or totally different solutions to customers. In this , marketers should try to earn maximum benefits.

2) Penetration Pricing: To attract more customers, prices should be kept lower one . Generally, It is utilized to gain a particular set of customers.

3) Premium Pricing;

It is utilized by those companies which offers very unique and rare products. For example, Tesla Electric vehicles, Apple i- phones etc.

4) Value based pricing;

This is utilizing by the organization to gain greater market share with low prices for every kind of customers.

1) foldable Mobile Phone

It should be sold with Penteration strategy. As this concept is outdated one.

2) Electric car:

It should be sold with Skimming prices as there will be great demand in upcoming years.