Types

• Several types of pricing strategies exist in the economic market, from penetration, economy, skimming, bundle, promotional and value practices. These strategies focus on setting prices for entering the market with new products, gaining market share, taking advantage of low competition and driving sales through special prices.
  
  

Background

• Companies can set pricing strategies based on the current market environment. For example, an emerging market may allow companies to charge higher prices due to high demand for products. Once a market plateaus, companies may need to use an economy or promotional pricing strategy to drive sales. Value pricing strategies help companies earn sales in declining markets.
  
  

Considerations

• Pricing strategies will often require some level of economic theory when setting prices. This involves the use of supply and demand charts where business owners and managers will determine which price point the company will maximize sales and set strategies for maximizing sales.