Marketing mix defines your business and the most basic components of a market mix comprise of Price, Product, Place, and promotion. This shows how important price is for a company. Setting the price is not an easy task at all. It involves different analysis and deep insights regarding the target market. Some of the most commonly used pricing strategies are: Premium Price When a firm knows that the product they are offering is of superior quality and can easily outperform its substitutes, they set a price higher than their competitors. They charge higher prices as compared to their competitors, as they know they are providing a better product. This is called premium pricing. Market Penetration When a firm wants to attain more market share, the strategy they use is Market Penetration. In this strategy, the price they offer is very low and none of their competitors can offer the same