Pricing new product Penetration strategy Pricing Setting a low price at the outset, in order to build a relatively large

market quickly Used when Demand is price elastic New firms can enter quickly if attracted by high price There are cost advantages by operating at higher volumes of output For some goods that price elasticities were high in the early stages of the life cycle, falling in maturity and then rising again in the decline stage Colgate-Palmolive, Proctor & Gamble,