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The Penetration Pricing Strategy
 
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Penetration pricing is a common pricing strategy used by businesses. To employ effective penetration pricing, businesses start by offering a product at a low price point. By doing so, the business is hoping to attract new customers and increase its share of the market. Once the business has increased its market share, it will slowly begin to increase prices to a point where they can offer the product in a profitable manner. To learn more about penetration pricing, as well as the conditions that need to exist for the strategy to be effective, watch the following video. Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P
Pricing Strategies: Penetration Pricing
 
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In this short revision video we explain the concept of penetration pricing. You often see the tagline "special introductory offer" – the classic sign of penetration pricing. The aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved. Penetration pricing is the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. In the short term, penetration pricing is likely to result in lower profits than would be the case if price were set higher. However, there are some significant benefits to long-term profitability of having a higher market share, so the pricing strategy can often be justified. Penetration pricing is often used to support the launch of a new product, and works best when a product enters a market with relatively little product differentiation and where demand is price elastic – so a lower price than rival products is a competitive weapon.
Views: 2902 tutor2u
Marketing Minute 096: “What is Penetration Pricing or Low-Price Strategy?” (Marketing Strategy)
 
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Penetration pricing. It occurs when you offer your product or service at a price that is low compared to the competition, typically with the goal of gaining more sales volume, new customers, and larger market share. The resulting high sales volumes also may help you reach certain economies of scale that can reduce your per-unit manufacturing or production costs. This type of pricing can work well when products in the marketplace are seen as commodities by at least some target audiences who do not perceive quality differences between brands. It also works well when there is high price elasticity of demand, meaning that slightly lower prices tend to result in much higher sales volumes. The disadvantage, or course, is that low prices also mean low per-unit contribution margins, which means that you’ll need those high sales volumes to cover your costs. But there is an advantage to those low margins: they can serve as a barrier to entry to other companies because, well, who wants to compete in a space where margins are already quite low? But the biggest disadvantage of a penetration pricing strategy? Pricing your product too low may result in perceptions that your product is of lower quality due to people’s experiences with price-quality correlations. **Be sure to subscribe to my channel so you don't miss any future episodes of Monday's Marketing Minute, where you’ll learn about: - Marketing Strategy and Tactics - Brand Development - Personal Branding and Professional Branding - Marketing Yourself - Marketing Leadership - Self-Improvement - and whatever relevant and related topics come our way. **Also, connect with me on any of the following: LinkedIn: https://www.linkedin.com/in/anthonymiyazaki Twitter: https://twitter.com/sensiblefolk Instagram: https://www.instagram.com/sensiblefolk/ YouTube: https://www.youtube.com/AnthonyMiyazaki
Views: 13375 Anthony Miyazaki
Penetration Pricing
 
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Define penetration pricing method. What are its merits and demerits? Penetration pricing refers to the pricing strategy where in a new product is initially offered at a lower price than the market price to attract new customers. The lower price attract the customers and persuade them to adopt the new product. Companies follow this strategy to increase their market share or increase their sales volume. Proft making is not the primary objective of this strategy. Once the market share reaches to the desired levels, the companies increase the price of the product. Merits of penetration pricing: - Faster reach to the customer base and helps in increasing the market share at a faster pace. The desired market rates can be achieved before the competitors notice and take appropriate measures. - It will lead to good will among the customers who adopt the product or service. This will lead to more referrals. - The organization is relieved from the cost control and cost reduction pressures right from the beginning. This intern lead to higher efficiency. - Due to lower cost, the competitors stay away from entering this segment. - Stock turnover is increased throughout the various distribution channels. - Generates significant enthusiasm and support in the channel. Demerits of penetration pricing: - Once the lower price of the product is determined, it becomes difficult to increase the price at a later point of time. Few of the consumers can switch away to a competitor products as soon as the price is increased. - It becomes complicated regarding deciding whether to increase the prices in steps over a number of years or to increase the price to a higher value instantaneously. However, to overcome this dilemma, organizations will release the product at a regular price but offer the product at a lower price through discount coupons. - This works only for short term. As the primary goal of the organization is to generate profits quickly, this penetration pricing will not be suitable for long term goals. Additional content on this topic can be found at http://www.eduxir.com/curriculum/cbse/class-xii/entrepreneurship/enterprise-marketing/
Views: 1047 Eduxir
Pricing Strategies: Dynamic Pricing
 
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In this short revision video we explain the concept of dynamic pricing. Dynamic pricing is a pricing strategy in which businesses set flexible prices for products or services based on current market demands. The aim of dynamic pricing is to allow a business that sells goods or services online and/or via mobile apps to adjust selling prices on the fly in response to changing market demand.
Views: 3587 tutor2u
Pricing Strategies
 
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Pricing Strategies
Views: 150694 Thompson VSE
Penetration pricing - explained
 
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Penetration pricing is a pricing technique, of setting a relatively low initial market entry price to gain market share and attract new customers. The strategy works on the expectation that customers will switch to your brand, product or service because of the lower price. With penetration pricing, profit is sacrificed in the short term to gain market share. Created at http://www.b2bwhiteboard.com
Views: 6198 B2Bwhiteboard
What is MARKET PENETRATION? What does MARKET PENETRATION mean? MARKET PENETRATION meaning
 
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What is MARKET PENETRATION? What does MARKET PENETRATION mean? MARKET PENETRATION meaning - MARKET PENETRATION definition - MARKET PENETRATION explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ Market penetration refers to the successful selling of a product or service in a specific market, and it is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service. Market penetration is the key performance metric for a business growth strategy stemming from the Ansoff Matrix (Richardson, M., & Evans, C. (2007). H. Igor Ansoff first devised and published The Ansoff Matrix in the Harvard Business Review in 1957, within an article titled "Strategies for Diversification". The grid/matrix is utilized across businesses to help evaluate and determine the next stages the company must take in order to grow, and the risks associated with the chosen strategy. With numerous options available, this matrix helps narrow down the best fit for your organization. This strategy involves selling current products or services into the existing market in order to obtain a higher market share. This could involve persuading current customers to buy more and new customers to start buying or even converting customers from their competitors. This could be implemented using methods such as competitive pricing, increase in marketing communications or utilizing reward systems such as loyalty points/discounts. New Strategies involve utilizing pathways and finding new ways to improve profits, increase sales and productivity, in order to stay relevant and competitive in the long run. Market penetration, although it can be performed throughout the business's life, it can be especially helpful in the primary stages of set up. It helps establish the businesses current station and which direction it needs to expand in to achieve market growth. Successful outcomes stem from careful monitoring by key staff and leaders. Timing is key to a successful market growth; this can be dependent on the overall market welfare, the business's competitors and current events. Questions, brainstorming and discussions can help distinguish whether it is the best time for market growth. These can include questions surrounding market share increases or decreases. Sales can be declining but shows opportunity for the business, it could be the perfect time to make alterations so as to grow market share. Market penetration can also be helpful when sales are proving to slow down, customers often need to be re-introduced to a company or reminded why they need your company's goods/services. With the consumers attention span becoming less and less, organizations need to constantly keep on top of competitors to stay relevant. Some factors of market penetration are holding costs, advanced inventory management practices and technology (e.g. ongoing replenishment and vendor managed inventory), supply chain problems and economies of scale (e.g., Chang and Lee 1995, Chen et al. 2005, Gaur and Kesavan 2005, Gaur et al. 2005, Hendricks and Singhal 2005, Huson and Nanda 1995, Lieberman et al. 1996). Market penetration, market development, and product development together establish market growth for a company. Overall the major growth opportunities they implement, attempts to peak sales through stressing current products in present markets and present products in new markets. This includes developing new products for existing markets, subsequently. It is about finding new ways to boost sales and keep customers loyal and increase market share. When implementing change companies must be careful not to compromise their existing revenue or customers. ...
Views: 3796 The Audiopedia
Lecture 7: Market penetration strategies
 
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MKT340 Strategic Marketing Management
Views: 607 Steven D'Alessandro
Skimming Strategy
 
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Skimming Strategy with pricing examples
Market Penetration
 
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How is Market Penetration defined? How is it different than Share or segmentation?
Views: 17530 Quatere
The Price Skimming Strategy
 
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Price Skimming is a common pricing strategy used for new products. Employing price skimming involves setting a high initial price, which helps a business recover the costs associated with developing and marketing the product. Although price skimming can be used in a variety of industries, it's commonly seen in consumer electronics, including: smartphones, video game consoles, and tablet computers. Learn more about price skimming, and the conditions that need to exist for this pricing strategy to be effective, in this video. Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P
A level Business Revision - Pricing Strategies
 
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In this A level Business Studies revision video, we teach you the most common PRICING STRATEGIES used by organisations and assess the merits of each one. Pricing strategies is a topic on all of the major exam boards A level business specifications. A level Business Studies Revision from TakingTheBiz.
Views: 14857 TakingTheBiz
Pricing Strategies: Price Skimming
 
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In this short revision video we explain the concept of price skimming. Price skimming is a pricing strategy that involves setting a high price before other competitors come into the market. This is often used for the launch of a new product which faces little or now competition – usually due to some technological features. Such products are often bought by “early adopters” who are prepared to pay a higher price to have the latest or best product in the market.
Views: 3002 tutor2u
Marketing Strategy | Pricing Strategies | External Pricing Factors | Chapter 10
 
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Marketing Strategy : Management Technology Based Marketing | Pricing Strategies | External Pricing Factors | Chapter 10; Introduction (00:00:19) Price (00:00:20 - 00:01:08) Price is set for two main reasons - : 1) Profit Oriented 2) Non - Profit Oriented Pricing Strategy and the Marketing Mix (00:01:09 - 00:02:27) *Promotion - How much money is set aside for promotion * Place - How is the product going to be distributed * Product - are production costs likely to increase External Pricing Factors and Internal Pricing Factors (00:02:28 - 00:04:09) External Pricing Factors * Supply * Market Demand * Competitors * Government - Internal Pricing Factors (It is based on Production Cost , Promotion , Distribution.) Pricing Strategies (00:04:10 - 00:09:30) - There are three main types of Pricing Strategies - : 1) Cost - Based Pricing - This Occurs when an Organization calculates the cost of a product, then adds a percentage mark up (profit)to it and sells at that price 2) Competition Based Pricing - This Occurs when a product's price is based on the competitor's prices not your own costs or consumer demand for the product 3) Value Based Pricing - This occurs when an organization sets its prices based on the consumer's perception of the value of the product. Pricing Strategies for New Products (00:09:31 - 00:12:05) These are o two types - : a) Market Skimming Pricing * Organisations aims for high price b) Market Penetration Pricing * Organisations aims for low price Strategies for Adjusting Pricing (00:12:06 - 00:18:20) * Discount Pricing (It can be classified into different categories for example Cash Discounts , Quantity Discounts , Trade Discounts etc.) * Psychological Pricing (Occcurs according to the Psychological Pricing) * Promotional Pricing (It can be small Packaged Products or product can be offered at a low price) * Segmented Pricing (It can be further categorised as - Location Pricing , Customer Segment Pricing , Time Pricing) * Geographical Pricing (It is because not all regions has the same social , economic Status) * International Pricing (Different Countries or Places will have different prices for the same product) Video by Edupedia World (www.edupediaworld.com) , free online education Download our App : https://goo.gl/1b6LBg Click here https://goo.gl/tPFKi6 to watch more videos on Data Marketing Strategy; All Rights Reserved
Views: 689 Edupedia World
Pricing Strategies in Marketing
 
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Explain in detail the following pricing strategies. - Cost Plus pricing - Penetration Pricing - Skimming or Creaming - Variable Price method - Cost Plus Pricing: Cost plus pricing is the most common and simple pricing strategy. As per this strategy the price is determined by calculating the sum of the cost of production and appropriate profit. However, this strategy does not stress on the optimum utilization of all available resources. This strategy completely depends on the manufacturing estimates. Costs associated with manufacturing are calculated to - Justify the planned capital expenditure - Calculate the cost of production for a new or re-designed product - Optimize the use of high cost areas. - The estimation is done by computing the factors like volume of resources, the cost associated with these resources and the duration for which these resources will be used. When it is required to justify the capital-expenditure, the depreciation and cash-flow analysis is done using accounting methods. Advantages: The information required to calculate the price i.e., amount of expenditure and the desired profit is readily available. It is simplest strategy as the price is computed just by adding all the cost incurred and the desired profit. As the information used is with the company itself, it can immediately take corrective measures by analysing the facts if it sees an increase in expenses. Disadvantages: The base for estimating the pricing is to consider the demand in the coming days. This method does not take this factor into account. This is a biggest drawback. As this method does not consider the competitors strategies to determine the pricing, companies depending completely on this method might fail. As this method considers the sunk cost and does not take opportunity cost into account there is a possibility of overestimating the price. In addition to this, the personal bias need to be added to the product. - Penetration Pricing: This strategy requires the price to be set to a value lower than the market price. This is usually done to acquire new customers. The whole idea is that the customers will switch to the new brand due to the lower prices. This is a short-term strategy and is usually used to increase the market share or sales volume rather than to incur huge profits. Once the required market share is achieved the prices are increased to regular values. Advantages: The market share and sales volumes are increased in a short term and before the competitors notice and react. Increases the goodwill among the customers who switch to this product. They intern refer the product to other customers and thereby contributing to the increased sales volumes. It increases the efficiency by introducing the cost control and cost reduction pressures right from start. Due to the lower price competitors hesitate entering into this area. Stock turnover is increased throughout the distribution channel. This method generates very critical and important enthusiasm and support in the channel. Disadvantages: The customers expect that the price will stay lower for the coming days and the company might be branded for its lower price. As a result, it becomes difficult to increase the prices in future. It is also possible that some of the customers will only stay with the product as long as the prices are low and they immediately switch to other brands as soon as the price is increased. It is not yet clearly determined whether it will be effective if the prices are increased suddenly or if they are increased over a period of time. Due to very small profit margin, the companies can not stick to this strategy for a longer term as it might result in losses for the company. Note: To overcome these disadvantages companies adopt a slightly modified version of this strategy where in they do not reduce the price initially. In this case they provide good discounts to the customers initially. This works as the customers do not have expectation that the price will be lower for a longer term. Additional content on this topic can be found at http://www.eduxir.com/curriculum/cbse/class-xii/entrepreneurship/enterprise-marketing/
Views: 1855 Eduxir
PENETRATION PRICING IN HINDI
 
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THIS VIDEO IS ALL ABOUT PENETRATION PRICING DEFINATION AND KEY POINTS OF PENETRATION PRICING
Views: 1443 Abhay Pratap Singh
What is PENETRATION PRICING? What does PENETRATION PRICING mean? PENETRATION PRICING meaning
 
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What is PENETRATION PRICING? What does PENETRATION PRICING mean? PENETRATION PRICING meaning - PENETRATION PRICING definition - PENETRATION PRICING explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ Penetration pricing is a pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth. The strategy works on the expectation that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with marketing objectives of enlarging market share and exploiting economies of scale or experience. These are advantages of penetration pricing to the firm: 1. It can result in fast diffusion and adoption, which can achieve high market penetration rates quickly and take the competitors by surprise, not giving them time to react. 2. It can create goodwill among the early adopters segment and can create more trade through word of mouth. 3. It creates cost control and cost reduction pressures from the start, leading to greater efficiency. 4. It discourages the entry of competitors. Low prices act as a barrier to entry (see Porter's 5-forces analysis). 5. It can create high stock turnover throughout the distribution channel, which can create critically important enthusiasm and support in the channel. 6. It can be based on marginal cost pricing, which is economically efficient. The main disadvantage with penetration pricing is that it establishes long-term price expectations for the product, and image preconceptions for the brand and company. That makes it difficult to eventually raise prices. Some commentators claim that penetration pricing attracts only the switchers (bargain hunters) and that they will switch away as soon as the price rises. There is much controversy over whether it is better to raise prices gradually over a period of years (so that consumers do not notice), or employ a single large price increase. A common solution to this problem is to set the initial price at the long-term market price, but include an initial discount coupon (see sales promotion). That way, the perceived price points remain high even though the actual selling price is low. Another potential disadvantage is that the low profit margins may not be sustainable long enough for the strategy to be effective. Price penetration is most appropriate in these circumstances: 1. Product demand is highly price elastic. 2. Substantial economies of scale are available. 3. The product is suitable for a mass market, with enough demand. 4. The product will face stiff competition soon after introduction. 5. There is not enough demand amongst consumers to make price skimming work. 6. In industries in which standardization is important. The product that achieves high market penetration often becomes the industry standard (such as Microsoft Windows) and other products, whatever their merits, become marginalized. Standards carry heavy momentum. A variant of the price penetration strategy is the bait and hook model (also called the razor and blades business model). A starter product is sold at a very low price but requires more expensive replacements (such as refills) which are sold at a higher price. It is an almost universal tactic in the desktop printer business, with printers selling in the US for as little as $100 including two ink cartridges (often half-full), which themselves cost around $30 each to replace. Thus, the company makes more money from the cartridges than it does for the printer itself. Taken to the extreme, penetration pricing is known as predatory pricing, when a firm initially sells a product or service at unsustainably low prices to eliminate competition and establish a monopoly. In most countries, predatory pricing is illegal, but it can be difficult to differentiate illegal predatory pricing from legal penetration pricing. .....
Views: 128 The Audiopedia
The Everyday Low Price Strategy
 
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Everday low pricing is a common strategy that involves a business establishing prices lower than competitors and then largely avoiding sales promotion. Everday low pricing, commonly referred to by the acronym EDLP, is intended to encourage consistent customer traffic in stores while achieving profitability through volume. In this video you'll learn more about everyday low pricing and how it compares to penetration pricing and price skimming. Learn about price skimming: https://youtu.be/V8NjDBsVWUY Learn about penetration pricing: https://youtu.be/Fjm6VVbe7bM Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P
Pricing Strategies
 
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Economies of Scale: https://youtu.be/gckmLtA4kwc Different pricing strategies. Premium pricing. Price Skimming. Penetration pricing. Everyday low pricing(EDLP) High-Low Pricing Strategy.
Views: 1418 FST Study
Marketing Pricing Strategies (The Low Price Monster)
 
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We all have fears to some degree or another... When I was a kid, I was afraid of the monster under my bed (I used to jump off the bed so he couldn’t grab me as I stepped down - he was sneaky like that). Now as a marketer, I’m afraid of the “Low Price Monster” Terrified actually. You see, when everything else is equal, the defining consumer buying decision will be price. So the solution then is to not let everything else be equal. Because you never want your businesses primary competitive advantage to be price. Never. Never ever. You see, when you compete on price alone a funny thing happens. It’s a race to the bottom. And whoever gets there first, loses. ## The Downward Spiral Of Low Prices Here’s how it normally goes. You lower your prices in an attempt to win more market share. Your competition sees what you’re doing and quickly lowers their prices as well. You see that the competitions prices are now lower, so you inch yours down another few dollars. The competition sees this, and so they take their pricing down a few dollars more. And lower, and lower, and lower it goes. Destroying profits, eating away at your margins, and forcing you to cut costs in other important areas like customer service, after sales support, marketing, and business development. ## There Is A Better Way Fortunately, when looking for a way to stand out from the competition the opportunities are nearly endless. Can your business be: 1) Better 2) Faster 3) Nicer 4) Cooler 5) Cleaner 6) Smarter 7) Prettier 8) Tastier 9) Easier 10) Cheaper (just kidding… don’t be cheaper) ## Where To Start When you look for a competitive advantage to capitalize on the first step is to take stock of your businesses strengths. Don’t be afraid to write down anything and everything that comes to mind. Ask yourself questions like: 1) What is it about your business that’s unique? 2) What makes your business better? 3) Why would a customer choose to do business with you, rather than someone else? Once you’ve got these down take a look at your competitors weaknesses, and write them down as well. Once these are all tallied up, take a look at your customers and what they value most, because it’s absolutely pointless to do something better than your competitors, that your customers don’t even care about. ► Download your free copy of The One Page Marketing Plan Here – http://adamerhart.com/marketingplan #LINKS Website: http://adamerhart.com Twitter: http://twitter.com/adamerhart Facebook: http://facebook.com/officialadamerhart Instagram: http://instagram.com/adamerhart
Views: 4456 Adam Erhart
Penetration pricing strategy
 
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from Prof Tim. Richardson, Seneca College and University of Toronto
Views: 2709 Prof. Tim Richardson
SKIMMING PRICING IN HINDI
 
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THIS VIDEO IS ALL ABOUT SKIMMING PRICING AND KEY COMPONENTS OF SKIMMING PRICING
Views: 2262 Abhay Pratap Singh
Market Penetration (With Example) ? Urdu / Hindi
 
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This Video Give the Basic Logic & basic Concept of Market Penetration (With Example) ? Urdu / Hindi ZPZ Education Channel Provided Very Easy & Small Size Educational & Informational Videos Subscribe Must for More New & Latest Best Videos. ZPZ Education Channel Link: www.youtube.com/channel/UCwFzeQDf9cGm_ZeTXV_t5SA
Views: 419 ZPZ Education
Pricing Strategy: Positioning and How to Price Your Product
 
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http://MarketingPathfinders.com Pricing Strategy: Positioning and How to Price Your Product - Learn the importance of positioning and how to price a product or service. Start your pricing strategies with positioning insights and not conversations about pricing models such as "cost plus" or "penetration pricing" and so forth.
Penetration Pricing
 
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Views: 29 Peter Benda
3 Pricing Strategies Everyone Should Know
 
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Visit www.ground-glass.com for more information. Ground Glass is the wedding photography resource for breaking through barriers and finding real-world business information.
Views: 78245 Spencer Lum
pricing strategies
 
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Pricing Strategy Definition Example Penetration Pricing Here the organisation sets a low price to increase sales and market share. Once market share has been captured the firm may well then increase their price. A television satellite company sets a low price to get subscribers then increases the price as their customer base increases. Skimming Pricing The organisation sets an initial high price and then slowly lowers the price to make the product available to a wider market. The objective is to skim profits of the market layer by layer. A games console company reduces the price of their console over 5 years, charging a premium at launch and lowest price near the end of its life cycle. Competition Pricing Setting a price in comparison with competitors. Really a firm has three options and these are to price lower, price the same or price higher Some firms offer a price matching service to match what their competitors are offering. Product Line Pricing Pricing different products within the same product range at different price points. An example would be a DVD manufacturer offering different DVD recorders with different features at different prices eg A HD and non HD version.. The greater the features and the benefit obtained the greater the consumer will pay. This form of price discrimination assists the company in maximising turnover and profits. Bundle Pricing The organisation bundles a group of products at a reduced price. Common methods are buy one and get one free promotions or BOGOF's as they are now known. Within the UK some firms are now moving into the realms of buy one get two free can we call this BOGTF i wonder? This strategy is very popular with supermarkets who often offer BOGOF strategies. Psychological Pricing The seller here will consider the psychology of price and the positioning of price within the market place The seller will therefore charge 99p instead £1 or $199 instead of $200. The reason why this methods work, is because buyers will still say they purchased their product under £200 pounds or dollars, even thought it was a pound or dollar away. My favourite pricing strategy. Premium Pricing The price set is high to reflect the exclusiveness of the product. An example of products using this strategy would be Harrods, first class airline services, Porsche etc. Optional Pricing The organisation sells optional extras along with the product to maximise its turnover. T This strategy is used commonly within the car industry as i found out when purchasing my car. Cost Based Pricing The firms takes into account the cost of production and distribution, they then decide on a mark up which they would like for profit to come to their final pricing decision. If a firm operates in a very volatile industry, where costs are changing regularly no set price can be set, therefore the firm will decide on their mark up to confirm their pricing decision. Cost Plus Pricing Here the firm add a percentage to costs as profit margin to come to their final pricing decisions. For example it may cost £100 to produce a widget and the firm add 20% as a profit margin so the selling price would be £120.00 4ps marketing mix brand marketing strategy brand strategies brand strategy branding marketing strategy branding strategies branding strategy business and strategy business level strategy business plan pricing strategy example business strategies business strategy business strategy examples business strategy model business strategy template by product pricing strategy communication strategy communications strategy example marketing strategy example of a marketing strategy example of marketing plan example of marketing strategy example of pricing strategy examples of marketing strategies examples of marketing strategy examples of pricing strategies hotel marketing plan marketing and sales strategies marketing and sales strategy marketing communication strategy marketing communications marketing communications strategy marketing mix marketing plan marketing plan example
Views: 3970 Mr. Advertiser
Market Penetration Pricing
 
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An Easy Overview Of Penetration Pricing
Views: 2305 Christopher Hunt
Ibbaka Pricing Strategy, An Introduction
 
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Ibbaka helps companies make pricing a critical part of their innovation and growth strategy. Get to know us! https://www.ibbaka.com/ Sound effects from http://www.freesfx.co.uk
Views: 199 Ibbaka
Pricing Strategies Marketing  by Dr. Mohammad Obeidat
 
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This video explains pricing strategy. what method companies used to generate profit and to price their products effectively!
Views: 724 Mohammad Obeidat
Pricing Strategies in Marketing | Urdu / Hindi | Marketing Strategies
 
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Being a marketers you must know different marketing strategies to capture attention of consumer. In this video i am going to teach you different pricing strategies. Kindly Subscribe my channel. Learn with sir kawish. Thank you.
Views: 9816 Learn with Sir kawish
What Is Market Penetration Pricing Strategy?
 
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Market penetration pricing strategy law and legal definition explained with examples case studymarketing dictionary. The objective of this approach is to generate penetration pricing a common strategy often used for new company or product launches. 25 penetration price, is market penetration pricing the best strategy? Does it fit your product segmentation plan? Use a decision making model to assess best pricing strategies, aug 20, 2015 two new product pricing strategies are available price skimming and market penetration pricing. Market penetration strategy definition & pros and cons. Once the product has found a definition of market penetration pricing strategy adopted for quickly achieving high volume sales and deep new. This pricing is typically used when the market saturated or there as name suggests, penetration pricing, mechanism in which at eventual price but give a discount coupon promotional strategy aug 6, 2012 this works best you are first entrant, one of entrants, into. Penetration pricing in this situation may also 16, 2017 a business intent on following the penetration strategy should accordingly, it elects to enter market at $6. Penetration pricing is the practice of offering a low price for new product or service during its initial in order to lure customers away from competitors market penetration refers strategy which set following introduction. Pricing strategies verde martin. Googleusercontent search. The goal is to quickly attract new customers based on the low cost. Asp url? Q webcache. Penetration pricing investopediamarket penetration the pros and cons what is market pricing? Definition meaning Market strategy examples tutor2u business. Let's learn more about these two new the effectiveness of using a penetration pricing strategy is strongly linked to on other hand, lowering one's prices in an elastic market can potentially be may 8, 2014 terms marketing mix some would say that least four key strategies namely premium pricing, feb 24, 2015 next important where gaining share primary objective. Mba what you need to know about pricing entrepreneurmarket penetration does it fit your product segmentation new skimming or marketing insiderpricing strategies teacher. By undercutting existing prices a feb 6, 2017 for instance, when firm aims to increase sales, lowering is an effective market penetration strategy takes advantage of low. The strategy is most effective for increasing market share and sales volume while discouraging competition penetration pricing a where the price of product initially set low to rapidly reach wide fraction initiate word mouth common used by companies that emphasize benefits customers. Penetration pricing investopedia penetration investopedia terms p. Market penetration pricing is a strategy that sets low initial price for product. Penetration pricing refers to a marketing strategy used by businesses attract customers new product or service. The intent is what the marketing mix of coca cola? Example
Views: 53 Your Question I
The High-Low Pricing Strategy
 
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The high-low pricing strategy involves setting prices that are higher than everyday low pricing stores, but then offering numerous sales promotions reduce prices lower than competitors' prices. By utilizing this common pricing strategy, marketing personnel are hoping that products sold at deep discounts, often called loss leaders, will increase traffic in stores and increase the sales of other higher profit-margin items. In this video, you'll learn more about how marketers implement high-low pricing as well as some of the disadvantages associated with this pricing strategy. **Learn about price skimming: https://youtu.be/V8NjDBsVWUY **Learn about penetration pricing: https://youtu.be/Fjm6VVbe7bM **Learn about everday low pricing: https://youtu.be/TvqqgrjjDME Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P
Pricing - Stanford Strategic Marketing of High Tech and Clean Tech
 
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Stanford CSP BUS47 - "Strategic Marketing of High Tech and Clean Tech" Spring 2012 Instructor: Tony Seba Pricing Strategy Tony Seba, author of 'Winners Take All - 9 Fundamental Rules of High Tech Strategy" teaches pricing strategy. What is a product worth? What is value? What are the sources of value? What is Economic Value to the Customer (EVC)? How does pricing change throughout the technology adoption lifecycle? More information: http://www.tonyseba.com
Views: 12324 Tony Seba
Pricing Strategy Part 1 || Marketing || Hindi || #4minutemarketing
 
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10 different types of pricing 1) Premium pricing It is a type of pricing which involves establishing a price higher than your competitors to achieve a premium positioning. You can use this kind of pricing when your product or service presents some unique features or core advantages, or when the company has a unique competitive advantage compared to its rivals. For example, Audi and Mercedes are premium brands of cars because they are far above the rest in their product design as well as in their marketing communications. 2) Penetration pricing It is a commonly used pricing method amongst the various types of pricing is designed to capture market share by entering the market with a low price as compared to the competition. The penetration pricing strategy is used in order to attract more customers and to make the customer switch from current brands existing in the market. The main target group is price sensitive customers. Once a market share is captured, the prices are increased by the company. 3) Economy pricing This type of pricing takes a very low cost approach. Just the bare minimum to keep prices low and attract a specific segment of the market that is highly price sensitive. Examples of companies focusing on this type of pricing include Walmart. 4) Skimming price Skimming is a type of pricing used by companies that have a significant competitive advantage and which can gain maximum revenue advantage before other competitors begin offering similar products or substitutes. It can be the case for innovative electronics entering the marketing before the products are copied by close competitors or Chinese manufacturers. 5) Psychological pricing It is a type of pricing which can be translated into a small incentive that can make a huge impact psychologically on customers. Customers are more willing to buy the necessary products at $4,99 than products costing $5. The difference in price is actually completely irrelevant. However, it makes a great difference in the mind of the customers. This strategy can frequently be seen in the supermarkets and small shops. 6) Neutral strategy This type of pricing focuses on keeping the price at the same level for all four periods of the product lifecycl. However, with this type of strategy, there is no opportunity to make higher profits and at the same time, it doesn’t allow for increasing the market share. Also, when the product declines in turnover, keeping the same price effects the margins thereby causing an early demise. This pricing is used very rarely. 7) Captive product pricing It is a type of pricing which focuses on captive products accompanying the core products. For example, the ink for a printer is a captive product where the core product is the printer. When employing this strategy companies usually put a higher price on the captive products resulting in increased revenue margins, than on the core product. 8) Optional product pricing It can be frequently observed in the case of airline companies. For example, the basic product of KLM Airlines is offering or providing seats in the airplane for different flights. However, once the customers start purchasing these seats, they are offered optional features along with the seats. Examples may be extra seat space, more drinks etc. Because of this optional product, there is more revenue generated from the main product. Customers are willing to spend for the optional product as well. 9) Bundling price Ever hear of the offer of 1 + 1 free? In the supermarket, when two different products are combined together such as a razor and the lotion for shaving, and they are offered as a deal, then we get to experience the bundling type of pricing first hand. This strategy is mainly used to get rid of excess stocks. 10) Promotional pricing strategy It is just like Bundling price. But here, the products are bundled so as to make the customer use the bundled product for the first time. This type of pricing focuses on buying one, and getting a new type of product for free. Promotional pricing can also serve as a way to move old stock as well as to increase brand awareness. 11) Geographical pricing It involves variations of prices depending on the location where the product and service is being sold and is mostly influenced by the changes in the currencies as well as inflation. An example of geographic pricing can also be the sales of heavy machinery, which are sold after considering the transportation cost of different locations. Click here to read more on geographical pricing strategy. Facebook Page : https://www.facebook.com/4MINUTEMARKETING/ Instagram Page : https://www.instagram.com/4minutemarketing/ If you find this content helpful, do SHARE it with others. This page is for educational purpose, where I share different contents of Marketing. My goal is to help and educate students with simplest way possible. #4minutemarketing
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Marketing Penetration and Price Skimming Pricing Strategy: EC BUS200
 
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Jim Dooley Meaghan Swartz Paige Ward
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The Penetration Pricing Strategy
 
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Penetration pricing is a common pricing strategy used by businesses. To employ effective penetration pricing, businesses start by offering a product at a low
Views: 14 Steven Koch
Marketing Strategies - How to separate yourself in a price competitive market
 
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http://www.evancarmichael.com/support/ - SUPPORT ME :) Like this video? Please give it a thumbs up below and/or leave a comment - Thank you!!! Help me caption & translate this video! http://www.amara.org/en/profiles/videos/Evan%20Carmichael/ TrancedFury: " Hi Even, great video, and I as you, believe in the power of belief. I strive to bring that into my everyday to help separate me from the competition. I've run into a road block as of late. In my industry 2-Way Wireless (Wireless Technologies) it's extremely price driven and competitive, with multiple brands and ecommerce. Any tips on helping separate yourself in a price competitive market?" Help us caption & translate this video! http://amara.org/v/FN80/
Views: 28220 Evan Carmichael
Pricing Strategy: All Pricing Strategies Full Description
 
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This video is all about pricing strategies. All time of pricing strategies are given. This knowledge is very important of B.B.A student. A student can use this knowledge in many course. He also can use this when he or she make an assignment............ So, the descriptions are given below.............. Price positioning and visibility........... 1. Market penetration strategy A relatively low market entry price may be used with the objective of building volume and market position. 2. Market skimming strategy A high price may be selected to generate large margins. Illustrative pricing strategies.................... 1.High active strategy- Highlight the high price Superior value, quality, dependable products such as high end alcoholic beverages High price even in promotional campaigns show consumers their differentiated product approach; also keeps competitors away. 2. High passive strategy- do not highlight the high price, but focus on non-price product features Very small target markets, often niche markets. High priced brands such as expensive watches, car brands, top end apparel companies market their products with non-price features to convince the consumers with product quality and performance. 3.Low active strategy- highlight the low price Day to day products, consumable goods, airlines, insurance, travel agents use this strategy to highlight the low price and claim they are offering value against competitors through lower price Walmart, Shopno and other brands use it. Particularly favorable when the brands are well known- then consumers do not have a question of quality arising 4. Low passive strategy- do not highlight the low prices Used by small producers whose brands are not familiar to buyers and have low cost features than other competitors, eg- small suppliers who provide food to retail stores/ department stores do not have highlighted price, although their price is relatively low. By not highlighting the low price, the firm runs less danger that potential buyers may assume the brand is inferior to other brands. Legal and ethical considerations........................ Price fixing- Illegal conspiracy between a group of firms (competitors) that they will not sell a product under a certain amount. Medicine companies resort to this. CNG and Rickshaw walas do it in CNG or rickshaw stands. Price discrimination- the practice of charging different prices to different buyers for goods of like grade and quality. Deceptive pricing- Consumers are often attracted to a store by a promoted low price item. Once in the store, either that product is claimed to be sold out or be of lesser quality and the consumer is persuaded to buy an expensive product. Predatory pricing- Charging very low price for a product to drive away competitors. Once they are out, increase the price so that consumers are forced to buy from the firm. These days very rarely used. Pricing management............... Price segmentation- Price may be used to appeal to different market segments. Airlines/ travel agencies have packages for different consumers. Industrial goods price depend on low/ large volume buying. Value chain pricing- How manufacturers sell to distributors (retailers and wholesalers) with a margin as profit Price flexibility- Fixed price or can be negotiated? Product life cycle pricing- Occasionally prices are declined through the product life cycle of a brand..................... Thank You.....For Watching.................................
Views: 241 Creative NaaHianN
SKIMMING PRICING STRATEGY || IN MALAYALAM || 2 minute video
 
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Explained skimming pricing with example in two minutes. This video will be helpful for commerce/management students and entrepreneurs.
Views: 323 Siju Rajan
types of pricing hindi
 
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Views: 15127 nitesh yadav
Smart pricing strategies for pharma companies
 
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Andrea Sobrio, founder and managing partner of Executive Insight, elaborates on the advantages of the comparative pricing method over traditional approaches to determine a drug’s pricing.
Marketing Minute 097 “What is Price Skimming or High-Price Strategy?” (Marketing Strategy / Pricing)
 
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A price skimming strategy is one where you offer your product or service at a relatively high price with the goal of receiving high contribution margins for each sale. It also allows you to position your product as elite or prestigious due to common consumer beliefs that higher prices are associated with higher quality products. Price skimming works best when your marketplace has distinct segments that are willing and able to pay premium prices for what your brand has to offer. Even better is when those same segments are perceived as innovators for that product category, so that other market segments will follow in their footsteps and desire your product as well. Often, a price skimming strategy is followed by a series of planned price reductions so that other segments will begin to purchase the product as the price is lowered. This is referred to as “riding” the demand curve or “filling out” the demand curve. In other words, over time you set different prices so that you can attract different audiences at each price point, from the initial premium price to later seemingly discounted prices. Remember: The key to premium pricing is to offer something that target segments will value, whether that’s enhanced quality, high-level customer service, the chance at early adoption, or perhaps some combination of these or other benefits. **Be sure to subscribe to my channel so you don't miss any future episodes of Monday's Marketing Minute, where you’ll learn about: - Marketing Strategy and Tactics - Brand Development - Personal Branding and Professional Branding - Marketing Yourself - Marketing Leadership - Self-Improvement - and whatever relevant and related topics come our way. **Also, connect with me on any of the following: LinkedIn: https://www.linkedin.com/in/anthonymiyazaki Twitter: https://twitter.com/sensiblefolk Instagram: https://www.instagram.com/sensiblefolk/ YouTube: https://www.youtube.com/AnthonyMiyazaki
Views: 15858 Anthony Miyazaki
Pricing Strategies: Cost-Based Pricing
 
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This revision video explains how businesses use costs as the basis for setting their prices. An example of mark-up cost percentages is used to illustrate cost-plus pricing.
Views: 4196 tutor2u
Cadbury case study/ Market Penetration/ strategic cost management and performance evaluation
 
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Follow me https://www.facebook.com/CAMeenaVerma21/ Picture and information credit- Cadbury Www.insivia.com Www.istockphoto.com Wizie.com TechNotes Amazone Www.agencymabufocus.com Customerfocus blog Amp.weightLossSurgery
Views: 1590 CA Meena Verma
Basic Info and Examples of Market Penetration Strategy
 
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How to calculate market penetration? This video will explain you the ways. Market penetration strategy is things to be carried out in market development growth program. This is vital strategy for small business marketing programs. You can penetrate your product to local and international by product promotion action both local marketing and international marketing action. Source of this video is http://marketingforbeginner.blogspot.co.id/2015/03/market-penetration-strategy-basic-examples.html Thank you for watching, subscribe this channel for more marketing video, and please share this video to your friends.

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