IGCSE/ A-Level Revision Questions

Strategy	Advantages	Disadvantages
Penetration Pricing	Rapid market share acquisition Discourages entry of competitors Creates economies of scale quickly	Low initial profit margins Risk of price wars May damage brand perception as a low‑price offering
Price Skimming	High profit margins on early adopters Recovers research and development costs quickly Creates an image of premium quality	Limited market share initially Attracts competitors seeking higher margins Requires strong product differentiation to justify high price

Strategy

Advantages

Disadvantages

Penetration Pricing

Price Skimming

Business – 3.3 The marketing mix – Elements of the marketing mix | e-Consult