Mkt 571 Week 4: Price And Channel Strategy Christi

MKT 571 Week 4: Price and Channel StrategyChristina ForresterPhoenixMKT/571 September 30, 2017Pricing and Channel StrategiesSkimming Pricing StrategyThis is a dynamic pricing strategy, where the business sets an initially high price for its product with a view to getting high profits. This strategy works in channels where a sufficient number of buyers have a high current demand, the high initial price will not attract more competitors and where the high price supports the image of a superior product. With this strategy, the business can generate high short-term profits and position the product as exclusive. In order segment, the market one brand may be differentiated to justify higher prices (Amstrong & Kotler, 2005).Penetration PricingThis is a static pricing strategy for entering the market with a low initial price so that greater share of mass-market can be captured. This strategy will be used where the market is highly sensitive to price and low price can stimulate market growth. This strategy is a tactic for creating a barrier to entry of other firms in the industry. The length of penetration price should be reviewed