Marketing, Pricing, Price skimming

There are a number of pricing strategies available to the launch of a new product such as an innovated, technologically driven IPad. In general, pricing strategies depends on both marketing and pricing objectives, markets for the product, the level of differentiation attached to the product, the products life-cycle and any number of other factors (Armstrong and Kotler 2011, p. 313). In determining what pricing strategy to use with the launch of a new IPad, management can choose between price skimming or penetration pricing (Armstrong and Kotler 2011, p. 313).