Johanna works in the marketing department for a toy manufacturer. Her company will be introducing a new type of toy and wants to obtain a dominant market share while discouraging competitors from offering similar toys. Which strategy would be best for achieving this goal?

Question

Quizplus · Accepted Answer

Penetration pricing would be the best strategy for achieving the goal of obtaining a dominant market share while discouraging competitors from offering similar toys. With penetration pricing, the toy manufacturer can set a lower price than their competitors to gain a larger market share. This strategy may make it more difficult for competitors to compete on price and could discourage them from entering the market. Additionally, by gaining a larger market share, the toy manufacturer can establish brand recognition and customer loyalty, making it more difficult for competitors to gain a foothold in the market.

Johanna Works in the Marketing Department for a Toy Manufacturer