Explore BrainMass

Marketing Plan: Phase III (potential price strategies explained)

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Identify the potential price strategies that should be used for the product or service.

response gives 14 potential strategies and explains them all.

© BrainMass Inc. brainmass.com October 15, 2018, 8:31 pm ad1c9bdddf - https://brainmass.com/business/branding/marketing-plan-phase-iii-potential-price-strategies-explained-350361

Solution Preview

Premium Pricing.
Use a high price where there is a uniqueness about the product or service. This approach is used where a a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights.

Penetration Pricing.
The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom and Sky TV.

Economy Pricing.
This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc.

Price Skimming.
Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new ...

Solution Summary

The expert examines a market plan for phase III potential price strategies.