Product line pricing is a product pricing strategy, used when a company has more than one product in a product line.
It is a process that traders adopt to separate products in the same category into various price groups, to create different quality levels in the customers’ minds.
What is an example of product line pricing
Selling a product at or below cost to lure customers in and drive other sales is an example of product-line pricing.
A restaurant, for example, might offer a low-priced entrée with the purchase of a drink and dessert that have higher profit margins.
What is a price line in marketing
What is price lining? Price lining is the practice of releasing multiple versions of the same product or service at different price points simultaneously.
It gives the impression that a product has both budget-friendly, standard options and premium options with extra features and benefits.
Why is product line pricing good
Using product line pricing allows companies to target customers with low-end, mid-range and high-end budgets.
By offering two, three or more product tiers, a company can reach a much larger range of customers which opens them up to the potential for more sales and greater brand recognition.
What are the problems associated with product line pricing
The problems are: 1. Pricing Over the Life Cycle of the Product 2. The rate of Market Growth 3.
The Erosion of Distinctiveness 4.
What are the factors which determine product line pricing?
- Organisational factors: ADVERTISEMENTS:
- Marketing mix: Though price is an important component of marketing mix, other components cannot be niggard
- Product differentiation:
- Product Costs:
- Product life-cycle:
- Pricing objectives:
- Functional position:
What is price line example
Here are a few examples of price lining: Cell phones: Many cell phone providers offer the same phone at different prices depending on its features.
For example, a phone with a basic camera is likely to have a lower cost than the same phone with a camera of better quality.
What is meant by product pricing
Meaning of Pricing: Pricing method is exercised to adjust the cost of the producer’s offerings suitable to both the manufacturer and the customer.
The pricing depends on the company’s average prices, and the buyer’s perceived value of an item, as compared to the perceived value of competitors product.
What is price line or budget line
This price line shows all those combinations of two goods which the consumer can buy by spending his given money income on the two goods at their given prices.
What is product pricing example
Example of By Product Pricing When meat is processed for human consumption, the by product can be used as food for dog/cat.
So the manufacturer can sell it in market to recover some of his expenses say transportation and storage costs.
Hence, this concludes the definition of By Product Pricing along with its overview.
What is full line pricing
FULL LINE PRICING Definition & Legal Meaning Retailing a product family with relative prices and package discounting the line.
Also refer to product family.
What is product form pricing
Product form pricing can be a subset of premium pricing and is one of the pricing techniques used when a company wants to get maximum benefit for its brand name or maximum leverage from recently launched popular products.
What is product line example
Examples of Product Lines (NKE) has product lines for various sports, such as track and field, basketball, and soccer.
The company’s product lines include footwear, clothing, and equipment. The various product lines for Starbucks Corporation (SBUX) include coffee, ice cream, and drinkware.
What is product line decision
Product line refers to a group of same products. Product line decisions refer to decisions relating to addition or deletion of product from the existing product line.
What’s another word for product line
Alternate Synonyms for “product line”: line; line of products; line of merchandise; business line; line of business; merchandise; ware; product.
What is regular price line advertising
Price Lining is a retail marketing technique where Products and services of the same category are grouped in the different price range based on their functions and quality.
It is a technique to help consumers to make buying decisions easily based on their requirements and budget.
What is product line strategy in marketing
A good product line strategy guides managers to improve their product line’s total performance.
It creates a focus on the whole line, not just products independent of one another.
And the focus also sets a course to avoid disjointed decisions, actions, and investments that may impact the line’s performance negatively.
Why do companies use pricing lining strategies
Price lining offers consumers the flexibility of choice. Those seeking additional features or higher quality are willing to purchase the product at a higher price point, while budget conscious shoppers or those that just want the basics may go for the lower-priced option.
What is product line analysis marketing
A product line is an efficient marketing strategy to increase market reach, retain existing customers and increase sales values.
The main objective of a product line is to retain customers who are loyal buyers of a brand.
What is product line policy
Product policy is concerned with defining the type, volume and timing of products a company offers for sale.
The product policies are general rules set up by the management itself in making product decisions.
Good product policies are the basis on which the right products are produced and marketed successfully.
How do companies classify product lines
Product lines may be classified according to product class, customer group, price and/or quality, and distribution method.
What is product line types
Types of product line decisions are; Product Line Expansion or Filling (Width, Depth, Dual).
Product Line Reposition (Product Modification, Product Trading). Product Line Contraction (Harvest, Continuation, Concentration).
What is the difference between product line and product range
A product line is a family of products derived from the same ancestry. Say an iPhone 4, 6, 7 then 8.
A product range is a group of products that generally have something in common or compliment each other in some way.
Say an iPhone, an iPad and MacBook air are a range, they all do different things but are related.
How do you create a product line?
- Define Your Target User
- Product Validation
- Develop a Go-To-Market Strategy
- Set The Pre-Launch Stage
- Develop the Next Product
- The Bottom Line on Launching a Product
What is product mix and product line
A product line is one line of similar products that are sold within a company, whereas a product mix is the combined total of all the product lines sold in a company.
What is a product line length
Product Line length refers to the number of products/brands that come under a single product category/line.
What are the features of product pricing?
- (a) One Price Policy: ADVERTISEMENTS:
- (b) Flexible Price Policy:
- (c) Meeting Competition Policy:
- (d) Under the Market Policy:
- (e) Bait Pricing Policy:
- (f) Price Lining Policy:
- (g) Skimming Pricing Policy:
- (h) Uniform Delivery Pricing Policy:
What are the features of product line?
- Product line consists of closely related product items
- It is a compose of various similar items
- Product items are complementary to one another
- There is difference in price
What is product line filling
Adding more products to an existing product Line in order to leave no gaps into which competitors might move.
When product lines are increased by moving up or down market to attract new customers, the process is sometimes called line stretching. +1 -1.
How do you manage product lines?
- Gain clarity on your sales & marketing strategy
- Understand how the sales & marketing strategy is converted to units
- Dive in: perform a detailed product line analysis
- Take action: implement the results
What is the advantages of a good product pricing
The advantages of a pricing policy lies in its ability to make your product appealing to customers, while also covering your costs.
The disadvantages of pricing strategies come into play when they are not successful, either by not sufficiently appealing to customers or by not providing you with the income you need.
References
http://www.rcboe.org/cms/lib010/GA01903614/Centricity/Domain/3005/MP_7%20Market%20Factors%20Powerpoint.ppt
https://www.investopedia.com/terms/p/product-line.asp
https://www.shopify.com/in/blog/how-to-price-your-product
https://www.netrivals.com/resources/guides/3-major-pricing-strategies-a-short-guide/
https://www.monash.edu/business/marketing/marketing-dictionary/l/line-filling
