Contemporary Marketing Study Set 5

Business

Quiz 19 :
The Global Marketplace

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Quiz 19 :
The Global Marketplace

Skimming pricing strategy: This strategy is also called marketing plus strategy which involves in the usage of the highest prices differentiated with competitive product prices. This strategy is generally used for the market entry price for the characteristic products with little competition. When supply goes beyond then the initial high price comes down. Penetration pricing strategy: This strategy involves uses of the lower price as the main weapon for marketing, where it is involved in the use of comparatively lowest entry price differentiated with competitive contributions emphasized on the principle where the original low price will assist secured market acceptance.

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Situation: D Computers launched its smart phone in the untapped markets to create brand identity. The company strategy is to create trustworthy consumer in the emerging markets. The company launched computers in these countries less than $500 initially, which is very much less than other countries. Penetration pricing strategy: It is a marketing technique used to attract customers in a new location, where it reduces prices in that particular location compared to other places, in order to get the brand identity. Justification: The company used this strategy in order to attract customer and to create brand awareness in these emerging markets. Due to application of this strategy in the countries like ID and CH the company is known everywhere and company created trustworthy customers as per their philosophy.