group 5

• DEMAND CURVE

  shows the quantity demanded at every price. The key thing to understand about this model is that when all else is equal, demand decreases as price increases. Fortunately, the marketer does not have to regard everything else as fixed. She can make adjustments to product, promotion, or distribution to increase the value to the customer in order to increase demand without lowering price.
• SKIM PRICING

  is a pricing strategy where a company sets a high initial price for a product or service and then gradually lowers it over time. often used when introducing a new product to the market, especially when the product offers unique features or has a competitive advantage.
• PENETRATION PRICING

  is a pricing strategy in which the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth. is most commonly associated with marketing objectives of enlarging market share and exploiting economies of scale or experience.