The marketing strategy of a new product requires a number of considerations as it determines the future demand of the product. In this regard therefore, marketing managers ought to come up with the best strategies; which would be geared at ensuring the gain of popularity of their products in the market. More so, the marketing decisions made should be based on the marketing objectives of their products which would further determine the visibility of the products to both their competitors and the customers. As stipulated by the law of demand, consumers are in most cases sensitive to prices; and thus any new product in the market has to be priced accordingly so as to enhance its popularity. More specifically, product marketers have to employ the best marketing strategies for new products which would determine its general popularity in the market as well as its future demand. This paper critically evaluates the pricing decisions of two new commodities, QwikDry Diaper Rash Spray and ‘This and That’ so as to enhance better position in the market in terms of their demand in the future.
Perhaps, the skim pricing strategy for QwikDry products seems to be much promising in the sense that; it allows for familiarization of the product by the customers when its price is still low. Being a high quality product, QwikDry Spray is expected to gain popularity by customers as its outcomes are perfect and its price is lower than that of other related products. In this case, the customers are expected to test the product and develop a strong preference towards it; where in the future its prices would be raised. This would be preferred in the assumption that; other related products’ prices will not drop as this product is being offered at lower prices in its initial marketing stages. Generally, the penetration pricing strategy would work perfectly given that; when the product is launched, other competitors would not change the prices of other related products.
On the other hand, ‘This & That’ bag pricing would be based on the skimming strategy as in the case of QwikDry product. As a new product, This and That would maximize its profits in the long run by first allowing its customers to get used to it when its price is still low and then rise it as it gains popularity. Through enticing customers with low prices, its demand is expected to go higher as the customers familiarize themselves with it; and then hike the prices afterwards. By so doing, the marketers of This & That have to bear in mind that, as they offer the product to ‘test’ through lower prices; their future income would be higher as the product gains popularity among the customers. Further, as the product gains recognition among the customers; the product marketers can then decide to offer the product in better packages but still promote their customers through discounts or shipping costs. Moreover, the benefits of this strategy would depend on the feedbacks received from customers on whether they like the product or not.
Generally, the skimming pricing strategy would be very essential for the new commodities as this would ensure its high demand both in the short-run and the long-run. In this respect therefore, this strategy would offer the best opportunity for the marketing of the products to a great deal.