Penetration Pricing

Concept summarized by Sam Mishra, MBA (MIT Sloan)

To penetrate a market, a product / service can be priced as low as possible to gain a large number of customers. If the marketing strategists decide that customers buying criteria is based primarily on price, pricing low, or lower than the competition, can be a good strategy. For existing markets, penetration pricing can help improve the sales of existing products. Please refer to the market penetration quadrant within the Ansoff Matrix framework to understand why.

Also see target return pricing, skimming pricing, and perceived value pricing.