School of Business
Department of Marketing
BMKT300 – Marketing Theory and Principles
Chapter 11 | Part 1
Pricing Strategies – Additional Considerations
,Objectives:
• Describe the major strategies for pricing new products.
• Explain how companies find a set of prices that maximizes the
profits from the total product mix.
, New Product Pricing Strategies
• Pricing strategies usually change as the product passes through
its life cycle.
• The introduction stage is especially challenging.
• Companies bringing out a new product face the challenge of
setting prices for the first time.
• They can choose between two broad strategies:
1. Market-skimming pricing
2. Market-penetration pricing
Department of Marketing
BMKT300 – Marketing Theory and Principles
Chapter 11 | Part 1
Pricing Strategies – Additional Considerations
,Objectives:
• Describe the major strategies for pricing new products.
• Explain how companies find a set of prices that maximizes the
profits from the total product mix.
, New Product Pricing Strategies
• Pricing strategies usually change as the product passes through
its life cycle.
• The introduction stage is especially challenging.
• Companies bringing out a new product face the challenge of
setting prices for the first time.
• They can choose between two broad strategies:
1. Market-skimming pricing
2. Market-penetration pricing
