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प्रश्न
Setting a price below than that of the competition is called ______.
विकल्प
Skimming
Competitive pricing
Penetration pricing
None
उत्तर
Setting a price below than that of the competition is called Penetration pricing.
Explanation:
Penetration pricing is a strategy where a product is introduced at a price lower than the competition to attract customers and quickly gain market share. The idea is to draw consumers away from competitors, build a customer base, and establish a strong market presence.
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संबंधित प्रश्न
It is also known as 'going rate pricing' or competition based pricing.
______ is the most common method used for pricing.
______ determines the sales volume and the profit margins.
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
What is parity pricing?
"Competition based pricing is ideal for non-branded products." Comment.
What is Cost plus pricing policy?
State two disadvantages of Cost plus pricing policy.
| 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.
What are various strategies used for pricing a product?
