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Penetration Pricing

Published on Dec 06, 2015

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PRESENTATION OUTLINE

Penetration Pricing

by Jack,Aidan Torin

Penetration Pricing
The aim is to increase market share.This enables the company to increase the price.

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Penetration picing is used to launch a new product

Photo by kevin dooley

Lower than the established price

Introductary offer
Photo by Jeff Kubina

Advantages

  • Lower cost
  • More revenue
  • Makes potential customers aware of the product
Photo by psyberartist

Disadvantages

  • Customers may not continue to shop at business
  • Less profit per unit sold
  • Customers may not bother buying the product when its at normal sale price
Photo by fo.ol

Example

  • Discount stores
  • Wholesale
  • Utilities
Photo by JeepersMedia