Rani Channamma University, MBA dept. Belagavi....

2. Introduction to New Product Pricing
Strategy
• New Product
“New product is a product which has got
modified, newly created with innovative ideas
or having special importance”
is called as New Product
• Pricing strategy
Pricing strategy is a well structured plan to
price a product to achieve long term
marketing objective.

3. • New Product Pricing Strategy
New product pricing strategy is the process of
fixing the price for the newly created products
as to achieve long term marketing goal of a
business entity.
is called as New Product Pricing Strategy.

4. Methods of New Product Pricing
Strategy
• Market Skimming
• Penetration Pricing

5. Market Skimming
• Market Skimming is an outstanding method of
pricing for the newly created product.
• It is the process of fixing high prices for the
newly created or modified products..
Ex= Apple co.
• Market Skimming is possible only when there
are sufficient number of buyers have a high
current demand

6. Advantages of Market Skimming
• Advantages
1.It helps to recover the R & D cost as soon as
possible.
2. It helps to attract the consumers attention as
the high price communicates the image of
superior products.
3. It gets high amount of sensation and
advertisement in the market

7. • Disadvantages
1. It may fail to attract the consumers interest
cum attraction towards the product
2. It can’t reach maximum number of
customers

8. Market Penetration
• Market penetration is the process of fixing
lower prices for the products as to create a
greater demand for the product.
is called as Market Penetration or
Penetration pricing.
For Ex:- China Mobiles.

9. Advantages and Disadvantages
• Advantages
1. It attracts more number of customers
2. It can achieve higher sales target
3. It can build a customer base
4. It can get a good advertisement in the
market.

10. • Disadvantages
1. It may fail to attract more customers
2. There is possibility of loss

11. Thank You
• Team Members
Mr. Amit.
Miss. Akshata
Mr. Amaranath
Mr. Abdul
Mr. Arihant. K. Zunjarvad