New Product Pricing Strategies
The most challenging stage of product is introductory stage. In introductory stage of new product companies face the challenge of setting the prices for the first time. Companies have only one chance to get new product price right. They can choose among the two strategies i.e. market skimming pricing and market penetration pricing.
Market Skimming Pricing
Companies interested in profitable sale set initially high price for a product to skim maximum revenue from the segments which is willing to pay high price and then slowly move to low price.
Market Penetration Pricing
Companies interested in large market share set low price for a product in order to attract large number of customer.
Product Mix Pricing Strategy
The strategies of setting the price for a product when the product is part of product mix.
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