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    Can you use penetration pricing in a business after it's been setup? On a question it says that the business isn't making as many sales how can you use the marketing mix and I wanted to know if you could use penetration pricing even if the business is setup?
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    (Original post by Beccae53)
    Can you use penetration pricing in a business after it's been setup? On a question it says that the business isn't making as many sales how can you use the marketing mix and I wanted to know if you could use penetration pricing even if the business is setup?
    Well its not ideal. The only reason you would use penetration pricing is because it'll give you a chance or competitive advantage in a new market. However once established, you can charge higher prices as you may have high market share or sufficient loyal customers, therefore no need to use penetration pricing


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    (Original post by Beccae53)
    Can you use penetration pricing in a business after it's been setup? On a question it says that the business isn't making as many sales how can you use the marketing mix and I wanted to know if you could use penetration pricing even if the business is setup?
    I think we should bear in mind that a business is likely to sell multiple products. So after a business has been set up, it may decide to introduce a new product in which penetration pricing can be used.

    A business could also make more sales by changing the product to better suit consumer tastes. The business could also also try different pricing strategies to increase demand such as the one you mentioned. In regards to place, the business could locate to a premises which is easily accessible to customers. Finally, the business could promote its product using local media sources to raise awareness in a cost effective manner.

    I hope this helped.
 
 
 
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