The task of the marketing manager is to decide the objectives of pricing before he determines the price itself. Pricing objectives provide guidance to decision makers in formulating price policies, planning pricing strategies and setting actual prices. The most important objective of the companies is to have maximum profits. Pricing objectives are goals that describe what a firm wants to achieve through pricing. Pricing objectives must be stated explicitly, and the statement should include the time frame for accomplishing them. There are six stages of setting prices. They are developing pricing objective, assessing the target market’s evaluation of price, evaluating competitors’ prices, choosing a basis for pricing, selecting a pricing strategy, and determining a specific price. Cost-based pricing is adding a dollar amount or percentage to the cost of the product. Cost-plus pricing is adding a specified dollar amount or percentage to the seller’s cost. Markup pricing is adding to Continue reading
Marketing Management
Marketing management combines the fields of marketing and management. Marketing consists of discovering consumer needs and wants, creating the goods and services that meet those needs and wants; and pricing, promoting, and delivering those goods and services. Doing so requires attention to six major areas – markets, products, prices, places, promotion, and people. Management is getting things done through other people. Managers engage in five key activities – planning, organizing, staffing, directing, and controlling. Marketing management implies the integration of these concepts.
Relationship Between Customer Satisfaction and Loyalty
Customer loyalty is an emotional rather than a rational thing. It is typically based on customer interest in maintaining a relationship with one organization. Often, customer interest is created and maintained through one or more positive experiences which lead to a relationship. Relationship is built on trust the most important thing to remember about trust is that without it, one have no relationship. This applies to all human situations, not just the customer service environment, for customers to continue long business with one and ones organization, trust has to be earned, and it does not happen overnight. Only through continued positive efforts on the part of everyone in organization can anyone demonstrate to customers that one can be worthy of their trust and thereby positively affect customer retention. Through actions and deeds, one must deliver quality products, services, and information that satisfy the needs of one’s customers. Even when one Continue reading
Service Process
Service process refers to how a service is provided or delivered to a customer. Delivery system is a creative process. Service process begins with a service concept and strategy to provide a service. In order to achieve these objectives various alternatives must be analyzed and identified before a decision is made. Designing a service process involves issues such as location facility, design and layout for effective design layout and workflow, procedure and job definitions for service quality, equipment selection and adequate service capacity According to Clovelock there are some operational issues which have to be considered while designing the service process. In order to achieve economics of scale and perform consistently the operation people would prefer to cater to individuals so that the customer feels as being treated specially. The decisions on design and facility layout should satisfy the objectives on both. Operational people are interested to improve Continue reading
Roles of a Marketing Manager
Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm’s marketing resources and activities. The marketing manager of a company plays an important role as far as marketing of the firm’s products and services are concerned. Apart from this, marketing managers are often responsible for influencing the level, timing and composition of customer demand accepted definition of term. It is worth noting that the roles of a marketing manager can vary significantly based on a business’ size, corporate culture and industry concept. However, we will discuss about the general roles that all marketing managers independent of any business performs. These key roles of a marketing manager will be analysed in depth below: 1. Carrying out of Marketing Research The first and most important role of a marketing manager is to carry out marketing research and analysis. The marketing Continue reading
The Importance of Marketing Communication
Those who practice advertising, branding, direct marketing, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales promotion and online marketing are termed marketing communicators. The communication process is sender-encoding-transmission device-decoding-receiver, which is part of any advertising or marketing program. Encoding the message is the second step in communication process, which takes a creative idea and transforms it into attention-getting advertisements designed for various media such as television, radio, magazines, and others. Massages travel to audiences through various transmission devices. The third stage of the marketing communication process occurs when a channel or medium delivers the message. Decoding occurs when the message reaches one or more of the receiver’s senses. Consumers both hear and see television ads. Others consumers handle or touch and read a coupon offer. One obstacle that prevents marketing messages from being efficient and effective is called barrier. Barrier is anything that distorts or disrupts a message. It Continue reading
The Concept of New Product Development
Product development is the process of finding out the possibilities for producing a product. It is necessary to find out the technical and financial feasibility, sales potential and profitability of the product. Thus, it can be said that the product development is concerned with the development and commercialization of new products. Definitions of New Product Development New Product Development is a process which is designed to develop, test and consider the viability of products which are new to the market in order to ensure the growth or survival of the organization. New Product Development can be defined as the process of innovating and inventing new ideas and concepts, with a view to developing a successful new product in the anticipation of customer needs. The new product development can be defined as the term used to describe the complete process of bringing a new product or service to market. There are Continue reading