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Friday, March 30, 2012

There is the solved assignment of “Explain the different product mix pricing strategies.” It is the solved assignment of MB0046 (Marketing Management) for SMU MBA. You may read Process of Developing New Product and Requisites of an Effective Segmentation also.

1. Product line pricing: strategy of setting the price for entire product life marketer differentiate the price according to the range of products i. e. suppose the company is having three products n low, middle and high end segment and prices the three products say Rs. 10, Rs. 20 and Rs. 30 respectively. In this condition, all the three products cater to the different segments low, middle and high income group respectively.

2. Optional product pricing strategy is used to set the price of optional or accessory products along with a main product.

3. Captive product pricing: setting a price for a product that must be used along with a main product. For example, Gillette sells low priced razors but make money on the replacement cartridges.

4. By-product pricing is determining the price for by-products in order to make the main products price more attractive. For example, L. T. Overseas manufacturers of Dawaat basmati rice, found that processing of rice results in two by precuts i.e. rice husk and rice brain oil. If the company sells husk and brain oil to other consumers, then company is adopting by-product pricing.

5. Product bundle pricing is offering companies several products together at the reduced price. This strategy helps companies to generate more volume, get rid of the unused products and attract the price conscious consumer. This also helps in locking the customer from purchasing the competitors products. For example, Anchor toothpaste and brush are offered together at lower prices.

Above mentioned are basic principles of product mix pricing strategies for SMU MBA MB0046 assignment.


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