ENTREPRENEURIAL MARKETING
PROMOTION STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the product could be resold at a lower price while still allowing the retailer to maintain an acceptable profit margin
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there will be more product choices available
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the product quality will be higher
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the retailer’s sales staff will be more friendly
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Detailed explanation-1: -Loss leader pricing: this strategy aims to attract customers by offering a product or service at below cost. The strategy hopes that customers will also purchase other products or services with a higher profit margin.
Detailed explanation-2: -Penetration pricing “Penetration pricing makes sense when you’re setting a low price early on to quickly build a large customer base, ‘’ says Dolansky. For example, in a market with numerous similar products and customers sensitive to price, a significantly lower price can make your product stand out.
Detailed explanation-3: -Penetration pricing is when businesses introduce a low price for their new product or service. The initial price undercuts competitors, forcing them to match the offer or quickly apply other strategies. Competitors’ customers may switch over to the cheaper offer, and new customers buy in too.