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प्रश्न
The main aim of penetrating pricing is to ______.
विकल्प
Provide funds for expansion
Maximize the market share
Provide a reasonable return on capital
Avoid price wars
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उत्तर
The main aim of penetrating pricing is to Maximize the market share.
Explanation:
Penetration pricing involves setting a low initial price for a new product to attract a large number of customers quickly and gain a significant market share. By doing so, the company aims to establish a strong presence in the market, discourage competitors from entering, and build customer loyalty. Once a substantial market share is achieved, the company may gradually increase prices to improve profitability.
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संबंधित प्रश्न
Explain the below mentioned pricing strategy:
Skimming pricing strategy
Explain the below mentioned pricing strategy:
Penetrating pricing strategy
It is also known as 'going rate pricing' or competition based pricing.
Introducing a product at low price and increasing the price once the brand succeeds is known as ______ pricing.
Give two conditions under which parity pricing is desirable.
What is penetrating pricing?
| Evergreen Cosmetics is planning to launch a new range of 'anti-wrinkle creams' in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion, they could easily be successful in the market. |
- Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
- Describe any two qualities that a salesman selling this product should possess.
- Explain any two tools of sales promotion that can be used here.
What pricing strategy will be used to launch shampoo?
Discuss the pros of Penetrating Pricing Policy.
"Penetrating pricing leads to setting a high initial price". Comment
