Example penetration pricing how to#

Then, marketers can focus on building customer loyalty rather than continuously fight for new audiences' attention. This is beneficial for companies because their products can penetrate the market quickly and build brand awareness for the business. Penetration pricing can be highly effective for some brands because it allows them to generate serious customer interest. Here are some key advantages of using this marketing technique: Increased customer interest

Example penetration pricing how to#

When you know it how to use it effectively, penetration marketing strategy can help you market products and gain interest of new customers who'd potentially stay with the brand long-term. Related: Marketing mix pricing strategies: definitions and examples Benefits of using penetration pricing As a result, these customers are less likely to go to the competition because they can pay less for a product of the same quality. This makes the price appear more attractive to customers because they'd normally expect to see a more typical, higher price.

When using this strategy, marketing teams agree to lower the price of a product for a fixed period after its launch. Using this strategy is common for campaigns that introduce a new product to an already competitive market. View more jobs on Indeed View more What's a penetration pricing strategy?Ī penetration pricing strategy, sometimes referred to as predatory pricing, is a marketing technique that consists in offering customers a lower price initially.