Market-skimming pricing and market-penetration pricing

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Problem: During the introduction stage of the new-product life cycle, companies need to choose between two broad pricing strategies: market-skimming pricing and market-penetration pricing. Explain the pros and cons of each.

Solution:
Pricing is deciding the consideration that customer has to pay in lieu of the organisation's goods and/ or services. It means deciding the right price which consumer has to pay including discount structure.When deciding the price, marketers must always be thinking of whom their target markets are. They must understand the wants and needs of the customer then construct marketing ...