In Canada, a new costing method called the 'profit Velocity' is being adopted to maximize profits. _a very important aspect of successful marketing is conducting consumer research and analysis, periodically. This will reveal the features of your product or service, the problems or defects and the actual acceptance level of your products in the marketplace. With this information, you could decide whether to improve or expand your current lines, to introduce new ones, or change your strategy. Independent surveys and your direct contact with customers may well surprise you with their feedback. _you may have a good product or service but you still have to inform the marketplace about. You also have to compete with other businesses already on the scene.
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Strategic Alliances - this is a general term to include joint ventures, joint production or marketing agreements. It works on the basis of your forming an alliance with a company that is already well-established and also strong in an area where you are weak. You share the profits, ownership, a good share of the market and. Risks also have to be shared, as well as the advantages. Franchising - licensing or other forms of agreements where others are given the right to market your products or services. Advantages are rapid expansion, receipt of a substantial fee and possible royalties and commissions, promotion and recognition of your products in the marketplace. Disadvantages will be to guarantee an established market, cost of providing training, site selection, ensuring constant product quality and. _It is important to establish an effective price structure based on a sound pricing policy. Keep in mind the four different phases: manufacturing, distribution, retailing and direct sales to customers. The price structures will have to take into account: the prime cost, overheads, margins, markup, sales taxes and. If you plan to export, a completely different price structure has to be worked out, which could address generally be: prime cost or ex- factory cost plus a percentage margin.
The negative aspects will be the need to arrange for delivery, product return costs, advertising and ilahi sales promotion costs. Also, it will call for a maximum effort from you. Distributors - a distributor will stock your products, and also others, and sell to retailers and end-users. You will carry less inventory, sales will be in bulk, while the negatives will be lower profit margins, possible irregular feedback and could lead to problems in production scheduling. Agents - agents will sell your products for a commission to be paid after a sale, with the advantages to you being lesser costs for reaching markets, larger sales through intimate knowledge and their contacts in the market. Disadvantages will be little loyalty, shared attention and difficulty in planning inventory. Retailers - probably the most common way for goods to reach the retailers is through wholesalers or distributors. Advantages will be good access to customers, a sound knowledge of the markets, effective presentation, and quick introduction to the marketplace, through advertising and sales promotion. Negatives would be shared attention, possible higher product returns, little control over pricing and difficulty in forecasting demand.
Small businesses may have some advantages over the larger ones, being able to move quickly, change course more easily and offer better personalized services at less cost. Successful marketing consists of nine basic areas. Research and identify the potential of your product or service in relation to the market. The composition and size of the marketplace and your proposed share will form the base. You should analyze your potential customers and competitors and anticipate their reactions to your business coming on the scene. Also important is the state of your market, whether it is new and growing; has essay reached maturity with little room for expansion; or it has reached saturation point and is on the decline. Marketing can take the form of: Direct Selling - will give you complete filsafat control, immediate feedback, quick response and higher profits.
Why are contingency plans necessary in marketing? What are the common promotional tools in marketing? You may have a good product or service that you believe is essential and marketable, yet customers will not exactly beat a path to your door. You still have to sell it to them and at a profit. Customers won't begrudge you a profit, if you give them what they need, when they need it, with quality always a priority - and that's marketing. Marketing is the crucial area which will decide the fate of your business, big or small. Success of a business will largely depend on effective marketing.
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Awarranty/coverageis a promise by the seller that an offering will perform as the seller said it would. A cluster analysis/ market test is an experiment in which the company launches a new offering in a limited market in order to gain real-world knowledge of how the market will react essay to the product. Competition between suppliers of goods or services, by price cutting or otherwise, which is so intense as to endanger pelajar the survival of some or all of the competitors is called cut-throat competition/commercial strategy. A product or range of products offered by a retailer under their own name in competition with branded goods is known as own brand product/market potential. Reading 1 Before you read the text discuss the following questions. Then, scan the text for answers. What is marketing about?
What makes customers buy a certain product? What business areas should you research for successful marketing? What kinds of costs are there in marketing? Which costs are projected? What is the function of distributors in marketing? How is price formed? What are the phases in pricing policies?
It is usually visibly manifested by way of branding and the use of trademarks. The term _refers to a good or product with a positive cross-elasticity of demand, in economics parlance. The term is used by business and economic theorists to make sense of demand and how it affects the marketplace. _ is amethod of research in which people in a sample are asked to test various products that are not identified by brand name-for example, brands x, y, and. Match the words from two columns to form a phrase. Market curve brand pricing supply strategy cut-throat competition cost-plus factors response penetration social-economic models niche loyalty circle the correct word or phrase.
Coverage/Brand loyalty is a result of consumer behavior and is affected by a person's preferences. Customers will consistently purchase products from their preferred brands, regardless of convenience or price. Odd-even pricing/cost-plus pricing occurs when a company prices a product a few cents or a few dollars below the next dollar amount. For example, instead of being priced.00, a product will be priced.99. A market test/cluster analysis is an experiment in which the company launches a new offering in a limited market in order to gain real-world knowledge of how the market will react to the product. Some companies create sophisticated statistical models called niche models/response models, which are based on how customers have responded in the past to marketing strategies.
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A store that simply sells merchandise directly to the essay consumer; the merchandise is generally purchased by the store from a wholesaler, or it may be manufactured by the company that owns the store is called. The entire size of the market for a product at a specific time is called. It represents the upper limits of the market for a product and is usually measured by either sales value or sales volume. _ is the strategy a company employs to market its products or services. There are two main types of it: traditional and nontraditional. A type of department store, which sells products at prices lower than those asked by traditional retail outlets is known. _ is the overall image of a corporation or firm or business in the minds of diverse publics, such as customers and investors and employees.
Customer satisfaction the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Brand loyalty benefits buyers receive by purchasing and consuming a companys offering. Market penetration periodic or required maintenance or repair of equipment by its manufacturer or supplier, during and after a warranty short period. Product life-cycle any practice which contributes to the sale of products to a retail consumer. Complete the sentences using the necessary term from the box. Retail outlet Substitute product Commercial marketing strategy market potential Discount store corporate identityBlind product testMass-market products _are designed and produced for selling to large numbers of people. A typical one of them is Coca cola.
brand corporate identity supply curve cost per call coverage cut-throat competition blind product test substitute products customer satisfaction variety store cluster analysis social-economic factors. Merchandising a number of persons reached or served by an advertising campaign or market. Value when a customer chooses to repeatedly purchase a product produced by the same company instead of a substitute product produced by a competitor. After-sales activities period of time over which an item is developed, brought to market and eventually removed from the market. Sound out the market a measure of brand or category popularity. Coverage a measure of how products and services supplied by a company meet or surpass customer expectation.
Place: If a mcDonald's restaurant was located in the middle of a field, would it be student successful? If not, why not? Where are McDonald's restaurants normally located and why? Price: If McDonald's charged 100 a burger, would it be successful? What is the average range of prices McDonald's charges its customers for its burgers? Why do you think it sets prices at these levels? Product: If McDonald's did not offer tasty food or food which was not hygienically prepared, would it be successful?
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Lead in:marketing mix, vocabulary: key terms, reading:marketing. Speaking:marketing campaign, grammar:Perfect Forms, case Study:marketing, translation:key terms. Writing:report and essay, culture:tips for cross cultural communication, leadin. Write down metamorphosis five things that come to your mind when you hear the word marketing. Discuss them with other students. What is a marketing mix? Read and discuss the following questions.