Pricing Challenges /strategies Skimming Using high-priced unique products to achieve the highest possible contribution in a short initial time period, then gradually lowering the price as the market Market Pricing Following competitive pricing in the target market, adjusting production and marketing mix to competitive conditions Penetration Pricing Offering low pricing to generate volume sales which hopefully will compensate for low margins Copyright 2001 by Harcourt, Inc. All rights reserved 11-3Copyright © 2001 by Harcourt, Inc. All rights reserved. 11-3 Pricing Challenges/Strategies Skimming • Using high-priced unique products to achieve the highest possible contribution in a short initial time period, then gradually lowering the price as the market. Market Pricing • Following competitive pricing in the target market; adjusting production and marketing mix to competitive conditions. Penetration Pricing • Offering low pricing to generate volume sales which hopefully will compensate for low margins