What Is a Product Line Pricing Strategy?
There are four elements of the marketing mix: production, pricing, place and promotion. A product has to be priced right for any company to reap profits. This strategy, product line pricing strategy, is used for selling products falling in a similar product range at different prices in different markets and to different customers.FunctionOrganizations use product line pricing when they offer the primary core product with a set of peripheral products. The two sets of products are thus priced consequently. A shirt would be the core product and cuff links would be the peripherals.SignificanceThe main aim of product line pricing is to ring in the maximum possible profits for the organization. The product range as whole is expected to make profits as opposed to each individual product making profits.BenefitsProduct line pricing lures price-sensitive customers, who feel that they are getting two or more products by just paying a little extra on what they would have normally paid to buy one p
