Explain Pricing Policy
Marketers should use the best prices to ensure their services or products compete successfully in the marketplace. The targeted prices should be sustainable and capable of delivering the targeted profits. The effective use of pricing can make it easier for companies to realize their business goals. However, price-setting remains one of the most challenging tasks for many companies. This is the case because the prices used by a specific company dictate its profitability and success.
Systematic pricing strategies have the potential to increase a company’s profits. Different departments in a firm such as marketing, production, and finance should be involved throughout the price-setting process. That being the case, pricing policy focuses on how business organizations set the most desirable prices for their products. Such prices should be informed by different aspects such as demand, level of competition, value, and production cost.
Pricing policy is therefore used by companies to set the right prices for different products and services. Business specialists believe strongly that a company’s pricing policy should be supported by evidence-based information. The information must focus on different attributes such as the prices of competing and substitute products in the market. The pricing policy should also ensure the value of the brand is considered. Production costs (or expenses) should be considered in order to ensure the products remain profitable. After arriving at the most desirable price, a company can use new strategies to attain competitiveness. However, the process of using prices to achieve the best business goals is called pricing strategy.
That being the case, pricing strategy and pricing policy should not be used interchangeably. The two refer to different pricing practices. Business organizations should therefore design the most appropriate pricing policies in an attempt to achieve their potentials. This approach will also make the companies more profitable.
Importance of Consumer Behavior for Marketers
The ultimate goal of marketing is to deliver quality services and products to more customers. Marketers should work hard to maximize their sales and profits. In order to achieve this goal, it is necessary for marketers to be aware of the behaviors of the targeted consumers. This is the case because consumers portray specific behaviors whenever purchasing a specific product. Such behaviors can be used to design the best marketing processes and strategies that have the potential to deliver positive results.
Consumer behaviors make it possible for marketers to predict the expectations of many potential buyers. Manufacturers can therefore use these expectations to produce superior products. Such products should be aimed at satisfying the ever-changing needs of the targeted consumers. The marketers can also develop new competitive advantages in an attempt to attract more customers. Differentiation in marketing can also deliver positive results.
Marketers should therefore begin by studying the behaviors of different consumers. This information will then be used to promote the concept of differentiated marketing. This approach will ensure the marketers use differentiated strategies to support the needs of various consumer groups. Such groups will be attracted using the most appropriate strategies. Consumer behaviors can also be used by companies and marketers to predict future purchasing trends.
Marketers should use customized approaches to exploit every opportunity or behavior. A proper analysis of consumer behaviors can make it easier for marketers to understand the dislikes and likes of many groups. This knowledge will be used to design the most desirable marketing strategy. Marketers should therefore explore the main sources of motivation for many customers. This is necessary because there are factors that encourage consumers to purchase specific services or products. As well, the marketers will understand the major issues discouraging consumers from purchasing specific products. This information can be used to design the most desirable marketing approach.
Procedure in Marketing Planning
Marketing planning is a powerful practice undertaken by companies before introducing different products in the marketplace. Companies that design and implement effective marketing plans find it easier to achieve their business potentials. Such plans guide marketers thereby delivering quality results. Several procedures should therefore be considered throughout the marketing planning process. The first step or procedure is setting the right goals.
The marketer should outline the major goals that must be achieved within a specified period. As well, the marketing strategy should be in accordance with the organization’s mission and vision. Many companies ensure their marketing goals are specific, realistic, attainable, and measurable. The second procedure is to assess the organization’s business situation. During this stage, the marketer must examine the company’s weaknesses and strengths.
A SWOT Analysis can be completed in order to identify the major strengths that can support the marketing process. During this second stage, a market research should be done in order to understand the existing opportunities and threats. The gathered information will then be used during the third stage. The third procedure is writing the most appropriate strategy and plan. The marketing plan should be guided by the needs of the targeted customers.
The plan will be used to ensure the products are delivered to the largest number of customers. During this stage, the planners can consider the effectiveness of a marketing mix. The 4Ps approach should be used because it has the potential to deliver quality results. The fourth procedure in marketing planning is implementation. The drafted marketing plan should be implemented in a professional manner. This approach will ensure the company realizes its business goals. During the implementation process, marketers are always encouraged to remain flexible and realistic. Some issues such as diversification, consumer demand, and competition should be considered throughout the implementation process.
Role of Consumer Behavior in Marketing
Consumers portray unique behaviors before purchasing a specific product or service. Marketers can undertake numerous studies in order to understand the buying behaviors and tendencies of different consumers. Consumer behavior is therefore a powerful field that focuses on the tendencies exhibited by buyers in the marketplace. This field is necessary because it guides companies to make the most desirable marketing choices and strategies.
For instance, consumers are influenced by various personal, psychological, economic, cultural, and social forces whenever purchasing various products. These forces encourage them to make the best buying decisions. A proper understanding of such behaviors can make it easier for many marketers to achieve their potentials. A firm that is aware of the forces influencing the decisions made by different customers will design the most appropriate marketing plan.
After analyzing the behaviors of different consumers, the marketer will understand the major factors that discourage many people from purchasing specific products. As well, the marketer will understand the major factors that encourage more people to purchase specific products. That being the case, consumer behavior is a powerful field that helps marketers understand the psychology of many individuals. This knowledge will make it easier for them to learn more about different brands and substitutes in the market.
The marketers will also understand how different consumers are influenced by their coworkers, friends, surrounding environments, and family members. The field also makes it easier for marketers to understand how effective advertising strategies influence the purchasing behaviors of different customers. Marketers should therefore undertake numerous researches to unearth the factors reshaping consumers’ behaviors. This understanding will make it easier for them to design the most appropriate marketing plans. Companies should therefore use consumer behavior to design effective marketing plans. Such plans will make it easier for the companies to realize their business objectives.