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Marketing vocabulary · Pricing

Pricing strategy

Meaning in marketing, with examples

nounCore term

In marketing, pricing strategy means: The method a company uses to set and change its prices, based on its costs, its competitors, the value customers see and its business goals.

In Turkish: fiyatlandırma stratejisi

How it is used

A core part of the marketing mix. Common pricing strategies include cost-plus, value-based, premium, penetration and skimming pricing. Teams develop, review or change their pricing strategy, often when costs or competitors change.

Example sentences

  1. Our pricing strategy is to stay slightly below the market leader.

  2. With costs rising every month, we had to rethink our pricing strategy.

Common collocations

  • develop a pricing strategy
  • value-based pricing strategy
  • competitive pricing strategy
  • review the pricing strategy
  • price pointA particular price at which a product is offered, often chosen to match what a certain group of customers expects or can afford.
  • premium pricingSetting prices higher than competitors on purpose to signal quality, exclusivity or status, so that the high price becomes part of the brand's appeal.
  • penetration pricingLaunching a product at a low price to attract many customers quickly and win market share, often with a plan to raise the price later.
  • price skimmingLaunching a new product at a high price for customers who want it first, then lowering the price over time to reach more price-sensitive buyers.
  • psychological pricingSetting prices in ways that affect how customers feel about them, such as 99.90 instead of 100, so that the product seems cheaper than it really is.

More terms: Pricing

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