Your prices send out important marketing signals, establishing the position of your products in the market, contributing to the overall image of your business. It is essential to get your pricing right. If you set your prices too high your sales will suffer and if you price too low your profits. LIke all aspects of the business it should have a regular objective analysis to ensure the figures you are using to determine price and profitability are correct.
Customers have a concept of a “just” (fair) price. For special purchases customers become aware before and during the purchase process. Customers will buy at (perceived) bargain prices. Down payment/installment price is more important than total price. If there are close substitute products, customers will be sensitive to price. If cost an be passed on (e.g. as a business expense) the buyer will be less sensitive to price
The price you can charge for your product or service will depend on the level of demand from the consumer, the level of supply from your competitors, the state of the economy and your own position in the market in relation to price and quality.
2015 saw the highest number of mergers and acquisitions in economic history. Whilst a merger might be good for the business, your loss of power may also be at risk. Great if this is part of your exit strategy
Every business is different in the route it takes to get in the hand of its customers. Most businesses consider that word of mouth is the most effective method of marketing. This model considers six potential routes to market and then a plan to meet the connectors online and off through strategic networking.
Most companies have a portfolio of products or services. In some businesses it will be seen as multiple income streams. The portfolio helps to iron out peaks and troughs over a given period of time. The Boston Growth Matrix helps us to consider the contribution of each or each group to the bottom line of your business.
In the first part of this video we look at a Porter's Five Forces Template to consider the market environment that we are operating in. The second part is an exercise using Lewin's Force Field analysis to assess the importance and urgency of each of the five forces.
In the first of two tools, we look at Ansoff's Matrix with post it notes to help determine your product and market growth strategies. It points out the various strategies that a business can take depending on whether it wants to market new or existing products in either new or existing markets. The second tool is the Promotional Programming Template which helps you consider a programme of message and media to get the word out to your current and target clients.