Company’s Marketing strategy

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Competitive marketing is performed within a certain environment which itself is always changing. The marketing activities have, therefore, to change in consonance with environment to be continuously effective. In order to appreciate this process it is easier to divide the marketing activities into four basic elements which are together referred to as the marketing mix. These four basic elements (4Ps) which decide the heat of modern marketing over rivals: Product Price Promotion and Place (or physical distribution).

Market Segment

All corporate marketing activities have to be necessarily carried out in such a way that they lead to generation of surplus funds. Market segmentation helps in optimising the marketing mix for a segment. The output of a segmentation analysis is a profile of customer target group focusing on details that will best help to develop product, promotional, pricing and distribution strategies. The set of benefits sought to build the configuration of benefits sought and then select benefits in our offering that will constitute a critical advantage to act as the buying inducement.

Price It is an important element of the marketing mix which can be used as a strategic marketing variable to meet competition. Price is also an element which is highly perceptible to customers and significantly affects their decisions to buy a product.

Pricing Methods

The various considerations affecting pricing policies, the alternative pricing methods most commonly used.

These methods are: Cost-plus or Full-cost pricing

Pricing for a rate of return

Marginal cost pricing

Going rate pricing

Cost-plus or Full-cost Pricing

This is the most common method used in pricing where the price is set to cover costs (materials, labour and overhead) and a predetermined percentage for profit. The percentage differs strikingly among industries, among members—firms and even among products of the same firm. This may reflect differences in competitive intensity, differences in cost base and differences in the rate of turnover and risk.

Marginal Cost Pricing

Fixed costs are ignored and prices are determined on the basis of marginal cost. The firm uses only those costs that are directly attributable to the output of a specific product and the firm seeks to fix its prices so as to maximise its total contribution to fixed costs and profit. Marginal cost pricing is more effective than full-cost pricing for An organisation on account of the prevalence of multi-product, multi-process and multi-market concerns makes the absorption of fixed cost into product costs non feasible.

Competitive Advantage through Distribution Strategy

Channels of distribution are the most powerful element among marketing mix elements. By developing a sound distribution network and launching aggressive advertisement campaigns, a company can carve out a niche for itself. Channels of distribution help movement of goods from one place to another and thus create place utility and make it possible for the consumer to get goods when he wants them and thus create time utility.

It has acquired the distinction of being the most visible and glamorous method of marketing communication. Some of the major marketing and communication functions performed by advertising today include to inform, entertain persuade, influence, remind, reassure and add value to the product or service advertised. Advertising is an impersonal mass selling and communication method which makes use of various types of media to reach the target public in a short-time.

Advertising broadly aims at gaining exposure, creating awareness, changing attitudes of target customers in favour of sponsor’s products and services, and also at effecting sales and improving corporate image. Matching with a firm’s advertising needs’ advertising budget be determined, message formulated, copy developed, and media selected and scheduled. Identification and knowledge of the economic, demographic, cultural and psychological characteristics of the target customers should trigger the process of advertising planning.

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