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What is Market Penetration Pricing? What factors favour the use of this pricing strategy?

What is Market Penetration Pricing? What factors favour the use of this pricing strategy?

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Market penetration pricing is lowering price by the brand to penetrate more in the market by acquiring more and more customer. In this strategy the brand do not concern about the revenue base and profitability but want to expand more in the market by acquiring more customers. When a product is new or not performing well enough this strategy is use so that people can think about the product due to its lower price. This strategy is also works well when a brand entered a new market and geography.

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