Objectives:
        a. Identify strategies for pricing new  products.
        b. Select product-mix pricing strategies.
        c. Determine discounts and allowances that 
         can be used to adjust base prices.
        d. Adjust base prices using psychological 
         pricing techniques.
        e. Select promotional pricing strategies.
        f.  Select geographic pricing strategies to 
         adjust base prices.
        g. Identify segmented pricing strategies.
        h. Demonstrate procedures for selecting 
         appropriate pricing strategies for              products.
     New product Pricing Strategies
        Penetration pricing in the introductory stage 
         of a new product's life cycle involves 
         accepting a lower profit margin and pricing 
         relatively low.
        Price skimming involves setting the price 
         relatively high to generate a high profit 
         margin.
        A premium product generally supports a 
         skimming strategy.
         
     Product Mix Pricing Strategies
       The product mix is the collection of 
        products and services that a company 
        chooses to offer its market. Pricing 
        strategies range from being the cost 
        leader to being a high-value, luxury 
        option for consumers.
        Cost Plus
        Cost-plus pricing is the most basic type of pricing and 
         simply represents setting the cost of a product at some 
         level above the cost of producing and distributing that 
         product. So, for instance, a jeweler might decide to price 
         products at a 100 percent mark-up based on the costs 
         that go into creating the product.
        Competition Based
        Competition-based pricing is pricing that is established 
         specifically to address and respond to the prices of 
         competitors' products. Businesses may decide to price 
         either higher or lower or at about the same levels of the 
         competition, but their decisions are based on an 
         evaluation of what competitors are doing and how they 
         want to position their product mix.
  Discounts and 
  Allowances
    Clearance Markdowns to get rid of slow-
    moving, obsolete merchandise
    Promotional Markdowns 
    
     To increase sales and promote merchandise
    
     To Increase traffic flow and sale of 
     complementary products generate 
     excitement through a sale
    To generate cash to buy additional 
    merchandise