Penetration Pricing Strategy: The pricing strategy of low price in the early stages of product introduction is called as “penetration pricing strategy’. Objective: The main objective is to capture a large share of the market in the early stages of product introduction in the market.
Types: This strategy can be of two types:
(a) Rapid Penetration Pricing Strategy – where low prices are charged, and the product is promoted with heavy promotional expenditure.
(b) Slow Penetration Pricing Strategy – where low price is charged, and there is limited promotional expenditure to promote the product.
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