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    New product strategies of market-skimming and market-penetration

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    Discuss the two new product strategies of market-skimming and market-penetration.

    © BrainMass Inc. brainmass.com November 30, 2021, 12:00 am ad1c9bdddf
    https://brainmass.com/business/managing-customer-service/new-product-strategies-market-skimming-market-penetration-14606

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    Market Skimming or price skimming involves charging a relatively high price for a short time where a new, innovative or improved product is launched into the market. This is very advantageous to a firm for many reason. It allows the firm to quickly recover sunk costs before competitors step in and introduce substitutes, thus having a lowering effect on price. Also by charging high prices the company can obtain a high-quality image for its products. Some of the disadvantages od market skimming are:
    <br>1. It is only effective when the firm is ...

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    The expert examines new product strategies of market-skimming and market-penetration.

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