To gain market share with your unique product, setting prices as low as possible is referred to as ___________.

Setting prices as low as possible to gain market share with a unique product is referred to as market penetration. This pricing strategy aims to attract customers and quickly increase market share by offering lower prices than competitors. The idea is that by making the product more affordable, it encourages more consumers to try it, thus facilitating a swift entry into the market. Once a strong customer base is established through these lower prices, businesses might adjust their pricing strategies as they gain recognition and loyalty from customers.

Market penetration is particularly effective in competitive markets where price sensitivity is high, and consumers are likely to switch brands based on cost. By reducing prices initially, businesses can create a robust initial demand and potentially increase their market share swiftly, paving the way for future growth and profit opportunities as the product gains traction.

In contrast, market skimming involves setting a high initial price to maximize profits from customers willing to pay more, which is not aligned with the goal of gaining market share through low pricing. Cost-plus pricing is based on adding a markup to the cost of production rather than focusing on market dynamics. Competitive pricing aligns closely with what competitors charge but does not specifically target the low-price strategy as a means to gain market share quickly.