Differentiate between market-skimming and market-penetration pricing strategies. Explain the conditions within which they are effective
What will be an ideal response?
Market-skimming is used to skim revenues layer by layer from the market by entering the market with high initial prices. The product's quality and image must support its higher price, and enough buyers must want the product at that price. The costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. Competitors should not be able to enter the market easily and undercut the high price. Market penetration is used to penetrate the market quickly and deeply to attract a large number of buyers quickly and win a large market share by setting a low price initially when it enters the market. The market must be highly price sensitive so that a low price produces more market growth. Production and distribution costs must fall as sales volume increases. Also, the low price must help keep out competition and be maintained over time.
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A marketing information system is a structure consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
Indicate whether the statement is true or false
Which of the following is true of the LGBT market in the United States?
A) It is no longer a target of opportunity for marketers. B) Average household income is lower than the national average. C) It has an estimated $830 billion in buying power. D) Its members are rarely represented in TV network programs