Penetration (mercatic)
See also: Penetration (homonymy)
The policies generally recognized for the launching of a product are the policies of creaming and penetration.
In the case of a policy of penetration, contrary to a policy of creaming, the product is introduced at an intentionally low price, even aggressive, in order to conquer a big part of the market quickly.
This policy must be based on a good control of the costs and the capacity of the company to still lower those by exploiting the curve of experiment and the economies of scale, in particular if the market is in rapid growth.
It has as an main advantage dissuading the appearance of new competitors which will be discouraged in front of the weakness of the possible margins.
See too
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