company objectives target group a willingness to pay
There are three main pricing strategies an organisation can adopt:
1 Penetration pricing-the organisation low price to increase sets a sales and market share.
2 Skimming pricing the organisation sets initial high price and an then slowly lowers the price to make the product available to a wide market. The objective is to skim profits off the market layer by layer
3 Competition pricing-setting a price in comparison with competitors