During the introduction period, since consumers are very unfamiliar with the product, the company needs to introduce the product to the market through various promotional means and strive to increase the market awareness of the product. At the same time, since the production cost and sales cost during the introduction period are relatively high, the focus of the company’s marketing work during the introduction period is to make correct judgments and seize the opportunity to adopt effective marketing strategies to quickly establish product awareness as the core, so that the market can quickly accept the product, thereby occupying the market and forming a batch scale. During the introduction period, the company chooses the following four marketing strategies.
1. Quick skimming strategy
Adopting high prices and coordinating a large number of publicity and promotion activities in order to quickly expand sales and occupy the market, hoping to recover costs and make profits before the competition appears in large numbers. The market environment suitable for the quick skimming strategy is:
(1) There is a large demand potential in the market. (2) The target consumers have a desire for novelty.
(3) The product is of high quality and special efficacy. There are few other products that can replace it. Once consumers know about this product, they are often willing to pay a high price to buy it.
(4) The company faces potential competitors and wants to quickly establish a good brand image.
2. Slow skimming strategy
High prices are combined with few promotional activities. The purpose of high prices is to recover investment and obtain profits in a timely manner, and low promotion methods can reduce sales costs. The market environment suitable for slow skimming strategy is:
(1) The product market capacity is limited, there are few competitors and it is difficult to enter.
(2) Most potential consumers are already familiar with the product, and appropriately high prices can be accepted by consumers.
(3) The uniqueness of the product effectively fills the market gap.
3. Rapid penetration strategy
Low prices are combined with a large number of promotional activities in order to achieve the fastest market penetration rate and the highest market share, thereby effectively limiting the emergence of competitors and bringing huge market share to the company. The market environment suitable for rapid penetration strategy is:
(1) The product has a large market capacity.
(2) Consumers are not familiar with the product and are very sensitive to price.
(3) Potential competition is relatively fierce.
(4) Unit production costs can be greatly reduced as production scale and sales volume expand.
4. Slow penetration strategy
Low prices are used in conjunction with few promotional activities. Low prices help the market to quickly accept products. Fewer promotional activities can also reduce expenses and costs for companies to make up for the low profits or losses caused by low prices. The market environment suitable for the slow penetration strategy is:
(1) The market capacity of the product is large.
(2) Consumers are familiar with the product and are very sensitive to the price. (3) There is potential competition.
(4) The price demand elasticity of the product is relatively large. High prices can easily lead to a sharp drop in sales.