Penetration Pricing Strategy
Posted on January 6th, 2012
The mention of penetration pricing strategy always manages to raise eyebrows. Admirable in some cases; cheeky and underhand, otherwise. The intent of penetration pricing is honorable, of course. It simply aims at boosting the market share of an established product or capturing customers in case of a new launch by underpricing it. Implementing this strategy is akin to playing with fire, as a few dubious qualities associated with it can create unnecessary problems for any company. Advantages of Penetration Pricing Does penetration pricing work? It definitely does, and it succeeds in taking your rivals completely by surprise, giving them no time to recover from your onslaught. If your sales pick up, thanks to word-of-mouth publicity, nothing else could be better.
- Penetration price strategy is implemented with the sole intention of spreading your presence in the market.
Tags: Penetration Pricing, Penetration Pricing Strategy, Pricing Strategy, Strategy
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