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
2 Likes
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.
Answered By
2 Likes
Related Questions
A high percentage of new products fail during this period of Product Life cycle:
- Growth stage
- Decline stage
- Introduction stage
- Maturity stage
Factors which do not influence price determination is ……………
- Risk
- Goodwill
- Government control
- Buying motive
One of the additional elements of marketing mix of services is ……………
- Price
- Place
- People
- Promotion
…………… determines the sales volume and the profit margins.
- Price
- Place
- People
- Promotion