Price Sensitivity Companies can reduce price sensitivity of customers and have more scope for moneuvring their Pricing strategies. Price sensitivity of customers will determine the latitude that a company will have in increasing its price. A company should know the price sensitivity of its customers and the factors affecting it. In certain situations a company … Read more
Defining Innovations Innovations may be looked at from various perspectives. The following classification presents the perspectives of the customer and the target market. Innovation from Customer’s Perspective Innovation can be of 3 types, on the basis of extent of change they cause in consumer’s existing habits. – Discontinuous innovations, Dynamically continuous innovations and Continuous innovations. … Read more
Competitor Analysis Competition refers to rivalry among various firms operating in a particular market that satisfy the same customer needs. The industry structure affects long run profitability. Therefore, competitors should be understood and monitored. Their actions can spoil an otherwise attractive industry, their weaknesses can be a target for exploitation and their response to a … Read more
Factors Influencing Pricing Decisions Price-quality Relationship Customers use price as an indicator of quality particularly for products where objective measurement of quality is not possible, such as drinks and perfumes. Price strongly influences quality perceptions of such products. If a product is priced higher, the instinctive judgement of the customer is that the quality of … Read more
What is a Market – Definition and Different Types of Markets An exchange takes place in a market. A market comprises a group of buyers and sellers, who can interact with each other to buy and sell goods and services. They can interact with each other with or without physical contact. The transaction can be … Read more
Types of Distribution Channels Industrial channels tend to be shorter than consumer channels because of small number of ultimate customers, the greater geographical concentration of industrial customers, and greater complexity of the product which require close manufacturer-customer liaison. Consumer channels are normally longer because a large number of geographically dispersed customers have to be reached. … Read more
Sales Responsibilities The primary responsibility of a salesperson is to increase sales. For order getters this will involve identification of customers, presentation, demonstration, handling objections and closing the sale. In order to generate sales, six enabling functions should be carried out. Prospecting Prospecting is searching for and calling upon potential customers. Most sales person rely … Read more
What is Marketing Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its shareholders. It is also the process of finding, creating and retaining profitable customers. The aim of marketing is to know and … Read more
Marketing Mix The marketing mix is a particular combination of the product, its price, the methods to promote it, and the ways to make the product available to the customer. Based on its understanding of customers, a company develops its marketing mix of product, price, place, and promotion. The elements of the marketing mix are … Read more
Major Sales Promotion Techniques Companies use various sales promotion techniques to promote their products. The intention is to increase sales, make a large customer base, encourage trial, encourage repeat purchases to stimulate consumers’ purchase. The types of sales promotion techniques used by the company depend upon the sales promotion objectives set by the company. Consumer … Read more
Types of Salespersons The selling tasks are to win new businesses by identifying and selling to prospects. These salespersons should maintain good relations with current customers who can provide the leads. They should also be prepared to make a lot of cold calls and visits. Order Takers Order takers are not expected to persuade customers … Read more
Challenges in Personal Selling Personal selling involves face-to-face contact with a customer. There is a direct interaction between the buyer and the seller. In this two-way communication, the seller can identify the specific needs and problems of the buyer and tailor the sales presentation in light of this knowledge. But the audience with the customer … Read more
Sales Promotion Objectives The most basic objective of any sales promotion is to provide extra value that encourages purchase. When it is targeted at consumers, the intention is to stimulate consumers’ purchase. When the trade is targeted, the objective is to induce distributors to push the product. Sales Promotion Objectives are as follows: 1. Fast … Read more
Product Life Cycle (PLC) A product is delivered to go through definite life stages, in the same manner as living organisms do. They are first introduced in the market and customers accept the product if they find it serving their needs. Sales grow rapidly. Finally everyone who need the product acquires it and sales plateau. … Read more
