Price strategy in marketing plan 4p,professional slideshow software 2013 suite,windows xp install on usb drive,advertisement 3 2010 hssc - Plans On 2016

Sometimes your level of service can justify a higher price, if you guarantee your product for 5 years, people will be willing to pay more than a product only guaranteed for 90 days! Walmart is the example of Price Penetration, they go for the low price and best market penetration. If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader. This example illustrates what Niraj Dawar, of the Havard Business Review, meant in his article on effective marketing strategies. According to Dawar, downstream activities—such as delivering a product for specific consumption circumstances—are increasingly the reason customers choose one brand over another and provide the basis for customer loyalty.
Yet, business strategy continues to be driven by the ghost of the Industrial Revolution, long after the factories that used to be the primary sources of competitive advantage have been shuttered and off-shored. The strategic question that drives business today is not “What else can we make?” but “What else can we do for our customers?” Customers and the market—not the factory or the product—now stand at the core of the business. Let’s consider more closely how companies can use downstream activities to overturn traditional strategy. In their quest for upstream competitive advantage, companies scramble to build unique assets or capabilities and then construct a wall to prevent them from leaking out to competitors.
Downstream competitive advantage, in contrast, resides outside the company—it is the external linkage with customers, channel partners, and strategic alliances.
It is no secret that today, in many industries, the activities such as sourcing, production and logistics are being handled by outsourced companies, while subsequent efforts to reduce the costs and risks of customers are becoming sources of competitive advantage and the true source of value for the company. The seven Ps of marketing strategy namely product process promotion people physical evidence place and price.
Your price strategy will largely be based on how consumers perceive your product or service. This strategy may be an option due to quality of the product or service, uniqueness or even just brand perception. Some people do want peace of mind and that can be a powerful persuader depending on the audience you are targeting.

In our recent economic downturn even Saks Fifth Avenue was reducing prices for a time to be able to be competitive (but note that they did not do it for long). Generally the price penetration strategy will be marked by lower levels of service, less frills and often lower quality.
This strategy is associated with margins that are low and the need to sell on volume to make a profit, mistakes in this strategy can cripple or destroy a business. Many companies plan to lose money when introducing a new product or entering a new market so that they can build awareness and market share. They will examine the strengths and weaknesses of their product and try to price appropriately. There is a reason that half of new small businesses fail in the first two years, they don’t analyze and plan before they start selling.
Companies are still organized around their production and their products, success is measured in terms of units moved, and organizational hopes are pinned on product pipelines. According to Dawar, “this new center of gravity demands a rethink of some long-standing pillars of strategy: First, the sources and focus of competitive advantage now lie outside the firm, and advantage is accumulative—rather than eroding over time as competitors catch up, it grows with experience and knowledge. You can tell which of its activities a firm considers to be a source of competitive advantage by how well protected they are: If the company believes its edge lies in its production processes, then plant visits are strictly controlled. It is most often embedded in the processes for interacting with customers, in market research, and in customer behavior.
Why do you think people (including you) are willing to pay more for a brand name product just so you can have a popular logo on it? Apple computer does this by producing great products that they price higher then competitors products and rarely sell at a discount, their innovation, quality and reputation allow them to do this.
Many companies in financial trouble make the mistake of lowering the price below their competitors to try to capture market share and stay in business. Copy-writing is the art of taking these considerations into account and creating a compelling offer that increases the value and perception of your product in the eyes of the consumer.
Production-related activities are honed to maximize throughput, and managers who worship efficiency are promoted.

If it believes that R&D sets it apart, security around its research labs is airtight and armies of lawyers protect its patents. Your copy needs to stress the advantages of your price strategy and stay away from it’s weaknesses.
They then put themselves in a position where it is impossible to stay in business, much less be profitable. However, that same consumer, finding herself in a park on a hot summer day, will gladly pay $2.00 dollars for a chilled can of Coke sold through a vending machine. Downstream, it’s no longer about having the better product: Your focus is on the needs of customers and your position relative to their purchase criteria.
And if it prizes its talent, you’ll find hip work spaces for employees, gourmet lunches, yoga studios, nap nooks, sabbaticals, and flexible work hours. Prices in such cases are often arbitrary through under-invoicing and over-invoicing of transactions.The concept of transfer pricing, which was earlier limited to foreign multinational companies, is becoming increasingly significant for Indian companies as a result of their increasing internationalization.
That 700% price premium is attributable not to a better or different product but to a more convenient means of obtaining it.
Indian firms enter international markets by way of joint ventures, wholly owned subsidiaries, etc.
Third, the pace and evolution of markets are now driven by customers’ shifting purchase criteria rather than by improvements in products or technology” (Dawar, 2013). Companies own distribution systems in international markets, which make transfer pricing crucial for formulating an international pricing strategy.

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