Pricing strategy
Marketers should develop a pricing strategy for new products to achieve the desired impact in the market and discourage emergence of competition. For the sporting goods company, a penetration pricing strategy is appropriate because it brings in new customers, increases the market share, and builds customer loyalty. The penetration strategy fits for the sporting goods such as baseball gloves, apparels, and tennis rackets among others because they are low-priced items. The penetration strategy involves setting an initial low price, which is lower than the eventual standard price with an aim of attracting new customers (Nagle & Holden, 2002). Usually a price war goes ...
