Can you use penetration pricing after a business is setup Watch

Beccae53
Badges: 7
Rep:
?
#1
Report Thread starter 2 years ago
#1
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?
0
quote
reply
Foji
Badges: 16
Rep:
?
#2
Report 2 years ago
#2
(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


Posted from TSR Mobile
0
quote
reply
CallMeGodfather
Badges: 1
Rep:
?
#3
Report 2 years ago
#3
(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.
0
quote
reply
X

Reply to thread

Attached files
Write a reply...
Reply
new posts
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • Sheffield Hallam University
    City Campus Postgraduate
    Wed, 17 Oct '18
  • Staffordshire University
    Nursing and Midwifery Undergraduate
    Wed, 17 Oct '18
  • Teesside University
    Undergraduate open day Undergraduate
    Wed, 17 Oct '18

Who is most responsible for your success at university

Mostly me (235)
91.44%
Mostly my university including my lecturers/tutors (22)
8.56%

Watched Threads

View All