Product Market

Rather than deciding on putting low prices, it is preferable to find a differentiation (something that we can offer than our competitors do not do so), for example, quality of service. The option of low prices is easy to neutralize by our competitors and is difficult to be able to keep it for a long time. As for low prices, a strategy could be to opt for low prices when we are introducing a new product to market (introductory price), to thus achieve a fast penetration in the market, that the product has a fast response, or to become quickly known. Then increase the price due to demand (higher prices when demand for the product becomes high). Decide for average prices, i.e. prices near to the average market price, gives us the advantage of being comfortable to manage prices, but the disadvantage that are of greater competition. And by opting for high prices, I give us the advantage of achieve a higher profit margin, but the disadvantage of the possibility that we have fewer customers. Put high prices to our products, can take as a strategy, for example, when we are introducing a new product to the market, and want to take advantage of the purchases made as a result of the novelty of the product, or when we want to give our product a sense of quality or prestige..