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How are traditional pricing tactics used in eMarketing?
Of course the Internet marketer still has a whole selection of other more traditional pricing approaches to choose from that can be adapted to eMarketing scenarios:
Premium pricing e.g. selling music via iTunes.
Penetration pricing e.g. giving away free subscriptions to land grab market share for new start-ups such as Youtube.com and Myspace.com.
Economy pricing e.g. selling basic products and services online like basic web design or paperclips.
Price skimming e.g. new product launches online such as albums or games.
Psychological pricing e.g. products and services sold at 99p or $99.99 (Price Point Perspective).
Product line pricing e.g. subscription 1 @ free, subscription 2 @ $10.00 (with added value) and subscription 3 @ $49.99 for 10 years.
Pricing variations e.g. budget airlines selling tickets online where the first tickets bought are the cheapest, and the last ones bought tend to be more expensive.
Optional product pricing e.g. selling a holiday online with travel insurance.
Captive product pricing e.g. once you buy virus software from one brand, your updates must also come from them.
Product bundle pricing e.g. buying Internet access which comes with free online phone calls.
Promotional pricing e.g. Betting incentives, such as free Dollars to gamble online for current customers that gamble on football games to tempt them to play online poker, or vouchers with codes sent by e-mail as rewards e.g. Amazon.com.
Geographical pricing e.g. Microsoft pricing in different currencies in different international markets.
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