Sales Promotions

Student Name Student Number

Joel Paulose Varghese 301301689
Midhun Mathew 301282322

Which Pricing Strategy would you recommend in each situation?

1. Price Skimming
2. Penetration Pricing
3. Status Quo Pricing

Scenario Pricing Strategy Recommendation

Scenario One If you are introducing a new and innovative product
with a unique selling proposition, I would recommend
Price Skimming. This strategy involves setting a high
price initially to target early adopters and capitalize on
their willingness to pay a premium for a new product.
Scenario Two If you are entering a highly competitive market and you
want to gain market share quickly, I would recommend
Penetration Pricing. This strategy involves setting a low
price to attract price-sensitive customers and gain
market share.
Scenario Three If you are a small business and want to maintain the
current price level without making any changes, I would
recommend Status Quo Pricing. This strategy involves
keeping the price the same as your competitors or your
previous pricing, to maintain your market share and
profitability.
Scenario Four If you are operating in a market where customer loyalty
is low and price sensitivity is high, I would recommend
Penetration Pricing. This strategy involves setting a low
price to attract customers and gain market share.
Scenario Five If you are operating in a market where your product is
highly differentiated and has a strong brand image, I
would recommend Price Skimming. This strategy
involves setting a high price to target early adopters
and capitalize on their willingness to pay a premium for
a premium product.