In basic supply and demand models, price is the key variable that determines how much of a particular product will be demanded and thus should be produced. This makes pricing fundamentally important to productive organizations; as such, a large amount of effort has been expended to master the process.
Sales channels are becoming more sophisticated; trends like ecommerce, big data, and dynamic pricing are driving the growth of pricing as a field, much like advertising and product management.
Many approaches to pricing already exist. As the field expands, many new approaches will be created, both proprietary and publicly available. Here is an abbreviated list of the most well-known pricing methods:
It should be noted that these pricing strategies are not mutually exclusive, but overlap both semantically and practically. Firms may use multiple pricing strategies in conjunction with one another.
Firms may also use different pricing strategies at different stages of distribution. For example, a new shoe company may use market penetration pricing at the wholesale level to get its shoes into retail outlets, but set MSRPs with good value pricing in mind for the final customer.