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प्रश्न
Identify two desirable conditions under penetrating pricing.
उत्तर
Penetrating pricing is desirable under the following conditions:
- Demand for the product is highly elastic, i.e., the quantity sold is highly sensitive to price.
- Substantial economies in unit cost can be achieved by operating at large volumes of production and sales.
- There is strong potential competition in the market.
- High income market is inadequate, i.e., very few consumers are willing to pay a high price.
- The public is likely to accept the new product as a part of its daily life.
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संबंधित प्रश्न
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| Evergreen Cosmetics is planning to launch a new range of 'anti-wrinkle creams' in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion, they could easily be successful in the market. |
- Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
- Describe any two qualities that a salesman selling this product should possess.
- Explain any two tools of sales promotion that can be used here.
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What are various strategies used for pricing a product?
"Penetrating pricing leads to setting a high initial price". Comment
