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Penetration Pricing - Essay Example

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College
Essay
Marketing
Pages 3 (753 words)

Summary

One of the pricing strategies that is described by Tellis article is penetration pricing. Penetration pricing is a marketing strategy used by firm s to attract customers when there is a new product or services in the market…

Extract of sample
Penetration Pricing

This pricing strategy makes the customers to come in large numbers to buy the products due to its lower price in the market making the firm to make high sales. Penetration pricing when applied properly can be of great help to the firm since it will increase in the market share and the sales volume. Experience curve pricing Experience curve pricing is a type of marketing strategy that is used to estimate future average cost of products or services. This type of pricing is based on the experience of the firm on how it estimates its price of product and services within a given period of time (Tellis 146). When conducting this type of pricing strategy the firm must use statistical techniques similar to those used in past pricing. Image pricing Image pricing is a marketing strategy that is used by firms when they have two products in the market that are exactly and have the same features but the prices are different. A firm makes sure that it will supply the market with product and gives it a new shape, name and consequently the price differs only by changing the image of the product. The idea behind this marketing strategy is to target the potential buyers who go for high price products since the customer thinks that the higher the price the better the quality. ...
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