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If the toothpaste to be marketed is a new brand name one assumption is that there will not be a market share present to sustain sales. If a new brand comes onto the market and is immediately tagged with a higher retail price than those brands that enjoy brand loyalty chances are rather slim that sales will be high. Pricing strategies in this instance rely on marketing.
Advertising, samples, and promotional pricing can help a new company break into the market place and build a customer base. By promoting a new brand at a price that undercuts the competition slightly may entice consumers to consider purchasing the newer item...
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