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PRICING STRATEGIES
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CHAPTER 7
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aim of keeping out the competition, and it is essential that the company maintain its
low-price position since the market is highly price sensitive. Production and distribu-
tion costs are expected to fall as sales volumes increase. A penetration pricing policy
is appropriate when demand is elastic. For example, Anchor White and Ajanta tooth-
pastes used penetration pricing to enter the crowded dental cream market. The mar-
keters obtained as many customers as possible through a low price, and established a
position for their product in the market.
Product Mix Pricing Strategies
The pricing strategies ...
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