UNIVERSITY OF CALOOCAN CITY

College of Business and Accountancy

Name: Gladys F. Tatad Professor: Mrs. Salvacion Mopas

Course/Year/Section: BSBA MM2A

BUSINESS MARKETING

Pricing strategy: 6 different pricing strategies

1. Pricing at premium
With premium pricing, businesses set costs higher than their competitors.
Premium pricing is often most effective in the early day of a product’s life cycle
and ideal for small businesses that sell unique goods.

2. Pricing for market penetration

Penetration strategies aim to attract buyers by offering lower prices on goods and
services. While many new companies use these techniques to draw attention
away from their competitors, penetration pricing does tend to result in an initial
loss of income for the businesses.

3. Economy pricing
Use by a wide range of businesses including generic food suppliers and discount
retailers, economy pricing aims to attract the most price-conscious of consumers
with this strategy, business minimize the cost associated with marketing and
production in order to keep product prices down. As a result, customers can
purchase the product they need without frills.

4. Price skimming
Design to help businesses maximize sales on new products and services, price
skimming involves setting rates high during the introductory phase the company
then lower prices gradually as a competitor goods appear on the market.

5. Psychology pricing
With the economy still limping back to full health, price remain a major concern
for America consumer. Psychology pricing refers to techniques that marketers
use to encourage customer to respond on emotional level rather than logical
ones.

6. Bundle pricing
With bundle pricing, small businesses sell multiple product for a lower rate than
consumers would face if they purchase each item individually not only is bundling
goods an effective way of moving unsold item that are talking up space in your
facility but it can also increase the value perception I the eyes of your customers
since you’re essentially giving them something for free.
 UNIVERSITY OF CALOOCAN CITY
College of Business and Accountancy

Channel pricing

Channel pricing s the use of distribution channel as a factor in pricing. It is common firm
to offer different prices depending where you buy item. The following are common type
of channel pricing.

1. Price discrimination
Channel are good way to differentiate between customer who are willing to pay
more for your products and those who are price sensitive

2. Clearance channel
Using dedicated channels to clear excess inventory such as unpopular colors.
Brands may take significant step to keep clearance inventory.

3. Costs
Using pricing to recoup the cost of expensive channel.

4. Penetration pricing
Charging less when you open a new channel in order to gain market share.

Price system

Price system is a component of any economic system that uses prices expressed in any
form of money for the valuation and distribution of goods and services and the factors of
production.

Bidding and Negotiating

Bidding and negotiating involves organizing a bidding process, making a contractor

selection, and negotiating a construction contract. Some clients have a contractor in
mind. In other cases, the client may have favored contractor but also want to consider
other contractors and creative competitive bidding.

References:

http://quickbook.intuit.com
http://simplicable.com
www.hutterarchitects.com