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

Posts Tagged ‘skimming 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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Introduction Strategies

Mar 22 2013

IntroductionProduct Introduction Strategies are specific to a truly new product, a basic model, the first of its kind with no competitors. It solves a problem for a specific customer or group of customers. Sales are low, costs are high, and cash flow is a problem unless the company has other income streams. Distribution is limited, and the objective is to build awareness and trial. Anything other than this is probably a line extension.

New product introduction strategies are directed to “early adopters.” The company’s president would probably handle a business-to-business transaction. The discussion would be less about the product or price and more about “how soon can I get it.”

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