In light of this trade-off between benefits and potential risks, to what extent do you think penetration pricing is a suitable approach to helping a new product become successful in the marketplace?

Critical Thinking Penetration pricing is one approach to pricing for a new product launch. It is a helpful tactic to gain initial trials, build market share, discourage competitors, and pursue economies of scale. However, the initial price may set an expectation of value among consumers and essentially position the brand as a low-quality offering. This may result in some consumer resistance to purchasing the new product in the future if prices increase.

In light of this trade-off between benefits and potential risks, to what extent do you think penetration pricing is a suitable approach to helping a new product become successful in the marketplace? Would it be more appropriate to have some form of sales promotion or other incentive to encourage initial sales instead of some form of discounting? Do you think that a low price, even for an introductory period, would result in a negative perception of the brand?

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Pick three financial institutions, one from the US, one from the UK and one from Continental Europe.

Pick three financial institutions, one from the US, one from the UK and one from Continental Europe. Download their annual reports for a pre—crisis year (i.e. before 2008). Use their….

How many jars of pickles must you sell to break even?

Assume that you are in charge of pricing for a firm that produces pickles. You have fixed costs of $2,000,000. Variable costs are $0.75 per jar of pickles. You are….

If you were a marketer responsible for promoting these products, to what extent would you focus on a push or pull strategy for each of them?

n Class, 15–20 Minutes for Teams one of the steps in gauging the marketing communication budget is to determine whether the firm should adopt a push or pull strategy. let’s….