Product Marketing Strategy helps manufacturers with product marketing, product strategy, and marketing strategy to maximize profitability over the product life cycle.

Posts Tagged ‘pricing strategy’

Pricing Strategy

Sep 19 2013

Pricing Strategy in Burton, OHOf all the elements of the marketing mix, none is more visible to the consumer than the pricing strategy. Over time, no other element of the 4Ps is more considered by the consumer. Consequently, the pricing strategy is a key element in of the product offering.

One pricing strategy is to utilize a skimming strategy where the product is priced significantly above the competition. This is done to generate higher profits. Some do this because they only want the very  top of the market like Rolls Royce, Tiffany’s or Four Seasons hotels. The product or service must separate itself from the competition to justify the premium in the consumer’s mind.

Another option is use a penetration or commoditization strategy where the product is priced below the competition to drive volume.

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Preemptive Commoditization

Apr 25 2013

Preemptive Commoditization in Canton, OH


Preemptive Commoditization is a low cost  and low price strategy that gained popularity with automation and the rush to become the low cost producer. It is especially well suited in today’s market when targeting third world countries, but is also risky in that it can be easily overcome with a new improved version at a comparable price.

The preemptive commoditization strategy needs to begin as early as possible in the product life cycle to preclude as many competitors as possible. The key to success lies in generating volume and automating processes to achieve low cost producer status.

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