Pricing Strategies Matrix

Pricing – International Pricing

• Setting prices in international markets can be a challenge.

• Companies must consider: economic conditions, currency exchange rates, and the international business climate.

Pricing Strategies

• Economy Pricing:– The costs of marketing and promoting are kept to

a minimum.– Gives the market an inferior but economical

alternative for existing competitions

Pricing Strategies

• Penetration:– Setting the price as low as possible to quickly

enter the market and gain market share.– Illegal forms: dumping

Pricing Strategies

• Skimming:– The practice of setting the price of a new product

as high as possible. – It generates revenue quickly to pay for the cost– It works best when competition is weak or non-

existent

Pricing Strategies

• Premium Pricing:– Charges a high price where there is a unique

brand– Used where a substantial competitive advantage

exists