Final answer:
Penetration pricing is the strategy used by new firms to establish a market presence, offering low prices initially to attract customers before raising them. Predatory pricing is used by existing firms to discourage competition. Trade secrets and trademarks help firms maintain a competitive advantage.
Step-by-step explanation:
Among the strategies listed, penetration pricing is a short-term pricing strategy that can be used by a firm aiming to establish a strong market presence. Penetration pricing involves setting the initial price of a product or service lower than the eventual market price to attract new customers quickly, grow market share, and build a customer base. Once the firm has successfully gained a significant presence in the market, prices may be gradually increased.
Predatory pricing is another tactic, although it is used by existing firms to discourage new competition. It involves temporary price cuts to a level that new competitors cannot match without making a loss, in hopes they will exit the market.
It is important to differentiate between these strategies and other concepts like trade secrets, which are methods of production kept confidential to maintain a competitive edge, and trademarks, which are symbols or names legally restricted for use by the registering firm and serve to protect brand identity.