Element 1: What is your definition of the pricing strategies

Element 2: There are several pricing strategies, explain the strategies that you think it is important and in which context of industries it can be applied.

Element3: Choose one Pricing approach (theory, strategy, philosophies, models, techniques, etc ) to discuss in-depth.

Element 4: Provide real example/s that support your chosen approach

1-

Pricing strategy refers to method companies use to price their products or services. Almost all companies, large or small, base the price of their products and services on production, labor and advertising expenses and then add on a certain percentage so they can make a profit. There are several different pricing strategies, such as penetration pricing, price skimming, discount pricing, product life cycle pricing and even competitive pricing.

2-

Price Skimming Strategy

Another type of pricing strategy is price skimming, in which a company sets its prices high to quickly recover expenditures for product production and advertising. The key objective of a price skimming strategy is to achieve a profit quickly. Companies often use price skimming when they lack financial resources to produce products in volume, according to the article "Pricing Strategy" at NetMBA.com. Instead, the company will use the quick spurts of cash to finance additional product production and advertising.

3-.

Product Life Cycle Pricing

All products have a life span, called product life cycle. A product gradually progresses through different stages in the cycle: introduction, growth, maturity and decline stages. During the growth stage, when sales are booming, a small company usually will keep prices higher.

4-

For example, if the company's product is unique or of higher quality than competitive products, customers will likely pay the higher price. A company that prices its products high in the growth stage also may have a new technology that is in high demand.