Pricing Strategies | Different types of Pricing in Marketing (Marketing video 63)

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Pricing Strategies refer to the tactics used by organizations to boost sales figures and improve profits by selling the products at suitable prices.

Pricing Strategies are very important for a business as they can make or break a company. Depending upon the industry an organization chooses one or more pricing strategies for its products and services.

Types of Pricing Strategies

1. Skimming Pricing

Skimming Pricing refers to a pricing strategy where the organization charges the highest possible price for the product initially to gain a competitive advantage.

The price is gradually lowered with time when the supply increases in the market

Example - Apple

2. Penetration Pricing

Penetration Pricing is used to attract customers at the initial stage by keeping the price of a new product lower than the competitor’s price.

Example – Jio Telecom

3. EDLP

Everyday Low Price or EDLP refers to the strategy of a retailer to offer goods at a discounted price to its customers continuously.

Example - Walmart

4. Loss Leader Pricing

Loss Leader Pricing refers to a pricing strategy where a retailer keeps the prices of one or two products lower and at a loss to lure the customers in.

Example – Printers, Gaming Consoles, Black Friday Sale

5. Captive Pricing

Captive Pricing is used when there is a core product along with accessory products and one product is used to attract a large number of customers for everyone.

Example -Razors

6. Yield Management

Yield Management refers to the pricing strategy which helps an organization maximize its revenues. This variable strategy is based on influencing the customer and targeting him at the right time and place.

Example – Airlines, Hotels

This video is on Pricing Strategies and different types of pricing and has the following
sub-topics.

Time Stamps

0:00 Introduction to Pricing Strategies
00:25 Skimming Pricing
01:11 Penetration Pricing
01:39 EDLP
02:30 Loss Leader Pricing
04:01 Captive Pricing
04:34 Yield Management

Видео Pricing Strategies | Different types of Pricing in Marketing (Marketing video 63) канала Marketing91