Commercial Applications
The main aim of penetrating pricing is to:
- Provide funds for expansion
- Maximize the market share
- Provide a reasonable return on capital
- Avoid price wars
Marketing Mix
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Answer
Maximize the market share
Reason — Penetrating pricing involves setting a low price in the initial stage to make the brand quickly popular and to maximise the market share. The manufacturer seeks to sell to the masses and capture a large share of the market.
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Factors which do not influence price determination is ……………
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