03-04-2017, 01:31 AM
Is santoor following market penetrating pricing strategy?
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market penetration pricing strategy applied by santoor company
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Is santoor following market penetrating pricing strategy?
12-04-2017, 01:17 PM
The price of penetration is a price strategy where the price of a product is initially set low to quickly reach a wide fraction of the market and start the word of mouth. The strategy works on the expectation that customers will switch to the new brand for the lowest price. Penetration prices are most commonly associated with marketing goals of expanding market share and exploiting economies of scale or experience.
Market penetration prices
A strategy adopted to quickly achieve high sales volume and deep market penetration of a new product. Under this approach, a product is widely promoted and its introductory price remains comparatively low.
This strategy is based on the assumption that: (1) the product does not have an identifiable price segment, (2) it has a demand elasticity (buyers are price sensitive), (3) the market is sufficiently Large as to keep a relatively low price The profit margins, and (4) competitors will also soon lower their prices.
Market penetration prices
A strategy adopted to quickly achieve high sales volume and deep market penetration of a new product. Under this approach, a product is widely promoted and its introductory price remains comparatively low.
This strategy is based on the assumption that: (1) the product does not have an identifiable price segment, (2) it has a demand elasticity (buyers are price sensitive), (3) the market is sufficiently Large as to keep a relatively low price The profit margins, and (4) competitors will also soon lower their prices.
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