![]() ![]() And that makes you have the larger piece of the cake in the market. As branding makes you drive sales to the next level of the customer life cycle that is customer loyalty for a long time. Now, this switch will not ensure the customer loyalty. Some customers will make a switch from the competitors to your brand which will help in increasing the market share as well as improve the overall position of the brand in the market. With lower prices, a business can attract a significant number of new customers. Also, this boosts the word-of-mouth publicity of the brand in the complete target segment. When a business offers products/ services at a lower price it will make the customers a positive view of the business. With the help of a penetration pricing strategy, a business can develop a positive brand for its customers. It can be in a way of communication or creating a buzz for the more strategized audience. Generate Positive Brandingīranding contributes to making a product or service more appealing to the customer base. And this strategy can help you gain the right momentum for your business. So, to encourage first-time usage, companies have to take resort to many marketing tactics. Customers always have resistance to new products as they already might be using a similar product of a different brand. When a company is introducing a new product in the market, the penetration pricing strategy can help in gaining customers and becoming an established brand in some time. Here’s a look at some benefits of the penetration pricing strategy: 1. Advantages of Penetration Pricing Strategy PriceIntelGuru provides the best platform to experiment and try out new pricing strategies for all kinds of businesses. Basically, you can have a strategy based on the already tried and tested formula. Well, it helps in adapting to the marketing tactics of the competitor’s prices. A part from using the strategy for promoting the organization’s products, the marketing professionals utilize their insight for penetration pricing strategy and determine if a competitor uses them. Marketing professionals in diverse industries make use of penetration pricing strategies for their marketing activities. Penetration pricing strategy enables a business to widen its customer base and improve profitability in the initial phase itself. To begin with, many factors determine the exact pricing of the product such as the number of competitors in the market, similarity with their product, and how they price their products.īy selling the product/ service at a lower price, the marketing professionals can retain their customers in the long run even after increasing the prices for their product. ![]() So, free samples and low prices may attract them in a better way assuming the audience is price sensitive. ![]() As we want to attract new users but also some loyal users of the competition. The purpose of the strategy is to make as many people as possible try out the new product. To enter the market with a low price to cut the competition. Now, this is actually the oldest trick in the book. It aims at offering the product at a lower price than required to make a profit. Penetration pricing is a marketing strategy which businesses utilize while introducing anew product or launching a product in a new market. Let’s have a look at what penetration strategy is and who can benefit from the strategy. ![]() And in today’s blog, we will deep dive into the concept of penetration pricing strategy. Whether you are a marketing professional or management, having an understanding about a penetration pricing can help in improving your career prospects. Irrespective of the industry in which a business operates, penetration pricing strategy can prove to be effective in creating a customer base. Got you interested? Well, penetration pricing is the practice of offering a productor service at a lower price initially for attracting the customers. Pricing strategies help you harness the power of pricing in a way that helps you boost your profitability without increasing your costs. ![]()
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