Examples of Penetration pricing in the following topics:
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- These include: price skimming, price discrimination, psychological pricing, bundle pricing, penetration pricing, and value-based pricing.
- Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
- Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.
- The main disadvantage with penetration pricing is that it establishes long term price expectations for the product as well as image preconceptions for the brand and company.
- By definition, long term prices based on value-based pricing are always higher or equal to the prices derived from cost-based pricing.
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- Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
- Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.
- The advantages of penetration pricing to the firm are as follows:
- This can achieve high market penetration rates quickly.
- To gain further market share, a seller must use other pricing tactics such as economy or penetration.
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- Penetration and skimming are two strategies employed in pricing new products.
- What price level should be set in such cases?
- Two general strategies are most common: penetration and skimming.
- Penetration pricing in the introductory stage of a new product's life cycle involves accepting a lower profit margin and pricing relatively low.
- Compare penetration and skimming as two strategies for setting a price level
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- When a company sets an initially low entry price (lower than the eventual market equilibrium price) to attract customers, they are engaging in penetration pricing.
- Penetration pricing is used when the marketing objective is to increase market share/sales volume.
- These include: price skimming, price discrimination and yield management, price points, psychological pricing, bundle pricing, penetration pricing, price lining, value-based pricing, geo and premium pricing.
- Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
- Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.
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- Price: Prices for such products may be a little higher than conventional alternatives.
- The price is the amount a customer pays for the product.
- There are various strategies that can be applied when pricing a product like skimming and penetration pricing.
- Skimming means to price the product highly to increase profits.
- Penetration pricing can be applied when you want to enter a market and price your product lower than the perceived market price so that more people will buy it and this will increase your market share.
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- The price is the amount a customer pays for the product.
- Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well.
- From the marketer's point of view, an efficient price is a price that is very close to the maximum that customers are prepared to pay.
- A good pricing strategy would be the one which could balance between the price floor and the price ceiling and take into account the customer's perceived value.
- Common pricing strategies include cost-plus pricing, skimming, penetration pricing, value-based pricing, and many more.
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- Prices must be set to attract the appropriate market segment in significant numbers.
- Competitors often try to gain market share by reducing their prices.
- The price reduction is intended to increase demand from customers who are judged to be sensitive to changes in price.
- Price reduction is often seen in newer brands that have to compete with already existing brands.
- New brands not only require lower prices to penetrate the target market, but they typically require more investment as well.
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- Pricing may be low penetration to build market share rapidly or high skim pricing to recover development costs.
- Pricing is maintained as the firm enjoys increasing demand with little competition.
- There is intense price cutting, and many more products are withdrawn from the market.
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- Offensive Strategy: This strategy aims to adopt a policy of "destroyer pricing" to preempt the entry of new firms or drive away existing competitors.
- Also known as predatory pricing, this strategy is useful when competitors or potential competitors cannot sustain equal or lower prices without losing money.
- Market penetration occurs when a company penetrates a market in which current or similar products already exist.
- The market penetration strategy is the least risky since it leverages many of the firm's existing resources and capabilities.
- A prominent example of market penetration was the emergence of Facebook in the social networking market.
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- Upon contact with contaminated water, the parasitic larvae can penetrate the skin and mature within the organ tissues.
- These infect freshwater snails by penetrating their skin.
- The site of penetration will promote the transformation of the miracidium into a primary sporocyst.
- Penetration of the human skin occurs after the cercariae have attached to and explored the skin.
- As the cercaria penetrates the skin, it transforms into a migrating schistosomulum stage.