Geographical pricing refers to the location at which the price is applicable. Geographical pricing strategy is influenced by a number of factors such as the location of the company’s plant, the location of the competitors’ plants and their pricing strategies, dispersion of customers, extent of transport costs, demand and supply conditions and competitive environment. In geographical pricing, there are generally two methods of price basis which are stated in the offers or quotations submitted by a seller to a buyer. These are: Ex-Factory: “Ex-factory” means the prices prevailing at the factory gate. When a seller quotes to a buyer “ex-factory price’, it means that the freight and transit insurance costs are to the buyer’s account. In other words, the seller will charge the costs of freight and insurance to the buyer. The more distant customers landed costs are higher because of freight cost. FOR Destination or FOB Destination: When 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.
Significance of Advertising
Advertising helps in spreading information about the advertising firm, its products, qualities and place of availability of its products, and so on. It helps to create a non-personal link between the advertiser and the receiver of the message. The significance of advertising has increased in the modern era of large scale production and tough competition in the market. Advertising is needed not only by the manufacturers and traders but also for the customers and the society. The benefits of advertising to different parties are discussed in the following paragraphs. Read More: Introduction to Advertising Benefits to Manufacturers and Traders It pays to advertise. Advertising has become indispensable for the manufacturers and distributors because of the following advantages: Advertising helps in introducing new products. A business enterprise can introduce itself and its products to the public through advertising. It can create new taste among the public and stimulate them to purchase Continue reading
Major Benefits of Branding
Branding is undertaken to help support sales and revenue generation; stimulating initial sales and then retain sales. By creating a strong brand name with the associations identified above in terms of brand identity, the consumers perceptions may be influenced which potential to impact on the purchase decision. When a consumer makes a purchase, they will traverse the purchase process model, usually defined as occurring in five stages; need/desire recognition, information search, evaluation of alternatives, purchase decision and post purchase behavior. Branding has the potential to impact across all of these stages, potentially influencing the process in favor of that particular brand. Strong brands have the potential to stimulate the perception of a need or a desire; as seen with Coca-Cola and the sound of the bottle opening included in the advertisements, often accompanied by images of an apparently refreshing drink, seeking to stimulate thirst. Apple have also been good at Continue reading
Marketing Concept in Marketing Management
In a modern industrial economics, productive capacity has been built up to a point where most markets are buyers markets (i.e. the buyers are dominant) and sellers have scramble hard for consumers and ultimately consumers began to occupy a place of unique importance. The business firms recognize that “there is only one valid definition of business purpose to create a customer”. In other words, the recognition of the importance of marketing leads to the acceptance of marketing concept. The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case. In 1776 in the Wealth of Nations, Adam Smith wrote that the needs of producers should be considered only with regard to meeting the needs of consumers. To better Continue reading
Customer Segmentation Analysis
The buying behavior of customers will vary by segment, such as the elderly, the affluent, where people live, and so forth. If you want to understand how to compete, then you should understand the purchasing processes — who is buying what from whom? You can start your analysis with various customer segments and then test each hypothesis to see if this segment is buying the product or service. This type of analysis, referred to as customer segmentation analysis, helps the organization focus on those segments that provide the greatest growth. Customer segmentation analysis identifies and profiles promising target customers so that you can reach them with optimal marketing mixes. All consumer markets contain many subgroups of customers and prospects who behave differently, have different hopes, fears and aspirations, and have different purchasing behaviors. Segmentation enables a company to craft individual marketing plans that hit the “hot buttons” of each consumer Continue reading
Campaign Management Process
The very concept of a campaign in marketing is focused on a time bound effort to design a strategy for various objectives as per the client requirements. The business objectives which can be the drivers for a campaign are considering an effective launch for a range of products, follow-up and may be increase market share sometimes. The process of campaign management involves an understanding of what are the expected benefits of the campaign, budgeting and costing of the campaign while ensuring that all needful resources are met and finally evaluating the effect of the campaign on the target market. There could be various kinds of campaigns and depending on the objectives of the campaign the basic principle can vary while some core processes remain the same. Some campaigns perform more than one of the functions which may include product launch in the first stage and then go on to brand Continue reading