Launching of a new product could take place either in the existing markets or in a new market that is in a different geographical region to enhance business growth (Steinhardt, 2019). However, regardless of the market, it is essential to conduct thorough market research and the gap in the market thus producing a product that will meet the consumer demands.   There is also the need for strategic planning to launch the new product (Steinhardt, 2019). Launching a new product entails identifying the unique needs the new product will address, monitoring the stages of product development as well as conducting post launching activity to assess the product acceptance and continue producing the new product.

Skimming prices and penetration price refer to the marketing strategies implemented at the launch of a new product (Steinhardt, 2019). Skimming price applies to the use of high upfront prices to help in the maximization of the short-term profits from the interested customers (Steinhardt, 2019). For instance, the business can provide a new product at higher prices to attract customers. The best examples of penetration and skimming apply to the smartphones company of Apple and Samsung. Apple mobile company utilizes the market skimming pricing approach, and it has been able to create a significant brand of a following and loyal customers. It is an approach that keeps the prices at exceedingly high prices without dropping (Steinhardt, 2019). The Apple Company neither provides discounts nor drops prices because the clients believe the products are of excellent quality and every new brand comes with unique features that attract new clients.

Reference

Steinhardt, G. (2019). Blackblot Market-Value Pricing™ Model Glossary. In Market-Value Pricing (pp. 45-49). Springer, Cham.