In light of this trade-off between benefits and potential risks, to what extent do you think penetration pricing is a suitable approach to helping a new product become successful in the marketplace?

Critical Thinking Penetration pricing is one approach to pricing for a new product launch. It is a helpful tactic to gain initial trials, build market share, discourage competitors, and pursue economies of scale. However, the initial price may set an expectation of value among consumers and essentially position the brand as a low-quality offering. This may result in some consumer resistance to purchasing the new product in the future if prices increase.

In light of this trade-off between benefits and potential risks, to what extent do you think penetration pricing is a suitable approach to helping a new product become successful in the marketplace? Would it be more appropriate to have some form of sales promotion or other incentive to encourage initial sales instead of some form of discounting? Do you think that a low price, even for an introductory period, would result in a negative perception of the brand?

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How many jars of pickles must you sell to break even?

Assume that you are in charge of pricing for a firm that produces pickles. You have fixed costs of $2,000,000. Variable costs are $0.75 per jar of pickles. You are….

If you were a marketer responsible for promoting these products, to what extent would you focus on a push or pull strategy for each of them?

n Class, 15–20 Minutes for Teams one of the steps in gauging the marketing communication budget is to determine whether the firm should adopt a push or pull strategy. let’s….

re there any brands that you are aware of that may have damaged their brand equity through the overuse of aggressive sales promotions?

Critical Thinking sales promotions are designed to generate short-term sales and, as a result, are often associated with some sort of discount or special offer. the end goal is to….