The market price is the price determined by the free play of demand and supply. The market price of a product affects the price paid to the factors of production – rent for land, wages for labor, interest for capital and profit for enterprise. In fact, price becomes a basic regulator of the entire economic system because it influences the allocation of these resources. The pricing decisions must take into account all factors affecting both demand price and supply price. The price determination process involves the following steps: Market Segmentation : On the basis of market opportunity analysis and assessment of firms strengths and weaknesses marketers will find out specific marketing targets in the form of appropriate market segments. Marketers will have firm decision on : (a) the type of products to be produced or sold, (b) the kind of service to be rendered, (c) the costs of operations to Continue reading
Marketing Principles
Major Differences Between B2B and B2C
Marketing includes those business activities in the flow of goods and services from production to consumption. Goods and services are of two types; consumer and industrial. Firstly, it is important to define the primary difference between Business to Business (B2B) Marketing and Business to Consumer (B2C) Marketing. Both markets are types of commercial transactions, however, simply put, business to consumer (B2C) is the process of selling products directly to consumers and industrial/business to business (B2B) is the process of selling products or services to other businesses. However, the differences between both business systems are much more complex than their simple definitions, so are their similarities. Obviously, both B2B and B2C markets have one fundamental difference: the type of customer. However, this article is going to investigate these markets further, discussing the similarities and differences between their market’s structure, marketing practices and buying behaviour within the industry. Market Structure One key Continue reading
Concepts of Luxury and Masstige
The word ‘luxury’ derives from the Latin word ‘luxus’ , which according to the Latin Oxford dictionary signifies ‘soft or extravagant living, indulgence’ and ‘sumptuousness, luxuriousness, opulence’ . There are two aspects to consider when defining luxury, the psychological value and the value of the product/service itself. The psychological value of luxury comes from its function as a status symbol and from a highly involved consumption experience that is strongly congruent to a person’s self-concept. From a product perspective, luxury brands are frequently defined in terms of their excellent quality, high transaction value, distinctiveness, exclusivity and craftsmanship. In his paper on International Retail Marketing, T.B. Jackson proposes the following as the core characteristics of a luxury product: ‘… exclusivity, premium prices, image and status which combine to make them more desirable for reasons other than function’. Dimitri Mortelmans, in his paper ‘The concept of luxury’, says there are three main characteristics Continue reading
Different Approaches to the Study of Marketing
Marketing may be studied by different approaches. To facilitate the study these approaches may be broadly classified as follows: Commodity Approach: The first approach is the commodity approach under which a specific commodity is selected and then its marketing methods and environments are studied in the course of its movement from producer to consumer. In this approach, the subject matter of discussion centers around the specific commodity selected for the study and includes the sources and conditions of supply, nature and extent of demand, the distribution channels used, promotional methods adopted etc. Functional Approach: The second approach is the functional approach under which the study concentrates on the specialized functions or services performed by the marketers and the problems faced by them in performing those functions. Such marketing functions include buying, selling, storage, standardizing, transport, finance, risk-bearing, market information etc. This approach certainly enables one to gain detailed knowledge Continue reading
4 Reasons Why Marketing is Important for Every Business
Managers face an endless challenge to create unique strategies that will enable them provide positional advantage in an effort to achieve superior financial or customer performance. A company’s pecuniary success largely depends upon prudent marketing efforts along with financial, operational, accounting and other business functions. Marketing is identified as focusing on strategies concerning the critical decision of market definition and market segmentation as well as the identification of potential bases for differentiation. Sometimes, people ask why marketing is important in the financial success of a company. The answer to this question is, assume you have a product to offer with excellent features, best quality and amazing packaging but no one knows about your product? There will be no demand in the market for your it, the company will make no sale and eventually no profit. Here comes the importance of marketing. The most important function of marketing, along with others, Continue reading
Global Branding – Issues, Challenges and Strategies
A global brand is the product or services that bring along their identity (brand) which is available in many nations and, though it may differ from one country to another, the localized versions have a common goal and a similar identity. In other words, global brands carry one brand name or logo together with it. A global brand can carry one name or logo and thus be recognized worldwide, however, the product may not be of the same standard at all. Global branding can be influenced by some the issues like social and culture, the economics of the country, and political condition in a country. Besides, a lot of the marketers in the world are facing the problem of customizing or standardize their products and services. Marketers tend to influence by major challenges before they went for global branding, at the same time, the marketers should also make decisions to Continue reading