What pricing strategy can be used at the introduction stage of a product?
A new product can be introduced with a skimming strategy—starting off with a high price that keenly interested customers are willing to pay. The alternative is a penetration strategy, charging a low price, both to keep out competition and to grab as much market share as possible.
What products are in the introduction stage of the product life cycle?
The introduction stage happens when a product is launched in the marketplace. This is when marketing teams begin building product awareness and targeting potential customers. Typically, when a product is introduced, sales are low and demand builds slowly.
What is the pricing strategy for the product life cycle?
One customer can easily shift from one product to another if one product’s price does not play well to meet his expectations. Since the competition is increasing, pricing strategies for the growth stage of the product life cycle, the marketer needs to offer prodcut line pricing or options of product prices.
What is a product life cycle?
A product life cycle encompasses the time it takes to develop and introduce the product to the market until it’s no longer produced and sold to consumers. Primarily, it is divided into 4 stages – the introduction stage, growth stage, maturity stage, and decline stage.
What is the pricing strategy in the introduction stage?
Generally, in this stage product price is high. Moving to price strategy, the pricing strategy in the introduction stage is also called new product pricing or new market pricing. This is the strategy any marketer adopts while for the first time entering the market. At this stage, the product might be innovative, modified, or imitated.