This paper explains that the
price component of the marketing mix will vary according to the specific
phase in the product's life cycle. The author points out that, in the
release phase of the product life cycle, the company can generally use two strategies, depending on whether it decides on a high or a low release price. A high release price
strategy is also known as a market
skimming or a low cost strategy for a quick penetration of the market. The paper relates that the mature phase of the product is characterized by stabilized
sales and growth rates, and the company will tend to enter a defensive or even
analytical phase.