Kotler's Matrix, also known as the Product-Market Expansion Grid, is a strategic tool used in business to identify growth opportunities. The matrix has four key elements: Market Penetration, Market Development, Product Development, and Diversification. These elements can be applied to pricing strategies in the following ways:
1. Market Penetration: This involves selling more of the current products in existing markets. Pricing strategies here could include competitive pricing or price skimming to attract more customers.
2. Market Development: This involves selling current products in new markets. Pricing strategies could include penetration pricing to attract new customers in the new market.
3. Product Development: This involves developing and selling new products in existing markets. Pricing strategies could include premium pricing for innovative products.
4. Diversification: This involves selling new products in new markets. Pricing strategies could be a mix depending on the nature of the product and market.
Need to improve your product pricing to maximize your profit margin? This Pricing Strategies Toolbox...
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