Market penetration pricing - How To Discuss

To the extent that consumers recognize and buy a product in a specific market.

A strategy that requires rapid success in high sales and deep market for new products. With this approach, a product is widely advertised and the launch cost is relatively low.

This strategy is based on the assumption that (1) the product has no identifiable market segment, (2) it has demand flexibility (buyers are price sensitive), and (3) margins have relatively low profit margins. The market is too big to sustain, and (4) competitors will also lower their prices immediately.