Marketing Strategies in the Introduction Stage:

In launching a new product, management can set a high or low level for each marketing variable such as price, promotion and distribution. Management can pursue any of the following strategies:

A Rapid Skimming Strategy-The new product is launched at a high price and a high promotion level. The high price is aimed at recovering as much gross profit per unit as possible. Heavy promotion is aimed at convincing the market of the merits of the product.

Slow Skimming Strategy-The product is launched at a high price and low promotion. High price to get as much gross profit per unit as possible and the low promotion to keep marketing expenses down.

Rapid Penetration Strategy-Launching the product at a low price and high promotion aims to bring fastest penetration and a large market share.

A Slow Penetration Strategy-The product is launched at a low price and low promotion. The low price is aimed at encouraging rapid product acceptance while the low promotion keeps costs down.