Some Considerations Regarding the Product’s Pricing Strategy According to the Product’s Life Cycle

Pricing strategy depends on the product strategy adopted and fluctuates according to the product’s life cycle; a wrong strategy can bring the “death” of the product in any phase of the life cycle, even if it could have had a long life span. The producer of an innovating product must decide which place will be occupied by the new product in its aria of characteristics and the market segment for which the product is created, and, considering these aspects, he will adopt a certain product strategy (he can opt for one of the three basic strategies: a clear strategy of differentiation from the competitors, a strategy of cost domination and a concentration strategy) and implicitly a pricing strategy.