• By building economies of scale so that it can lower the fixed cost per unit. • Building capacities and spending money on research and development. New entrants are less likely to enter a dynamic industry where the established players such as Twitter, Inc. keep defining the standards regularly. It significantly reduces the window of extraordinary profits for the new firms thus discourage new players in the industry. Bargaining Power of
In addition companies need to deliver their products while keeping cost effectiveness in consideration. If they understand the perceived benefits of their target audience and are able to engage with them on a personal level, they can attain customer satisfaction and ultimately can have increased sales. In conclusion, conveying Unique Value proposition clearly to the customers could be a complete win/win for any business. Brand equity Formal Definition: The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself. Alternative Definition: Brand equity refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent.
Day conveys the idea that advertisements help enhance the needs of a consumer by repeating that the products will change their lives with a positive outcome. When these products demonstrate to their consumers that their products will help them, it lures the consumers to buy and try the product out to see if it will fulfil their needs. Jeffrey Schrank wrote
They are responsible for retail store tracking, bringing in new inventory based on consumer demand, creating sound financial plans that reduce company spending, and increase overall profit (Bordelon). Since the main goal of a Merchandise Planner is customer satisfaction their job can be best described as “being a liaison between the customer and the marketing and buying department, ensuring what the customer wants is available” (Bordelon). They review forecasts, use past performance to make projections, make recommendations for promotional markdowns, and manage inventory to maximize profitability. Additionally, merchandise planners research market trends to increase create more attractive
Through this we can sponsor the activities or event put up by any corporation. This process can guide towards admiration of the brand among the people involved in and around the activity. This would mainly attract the people to familiarise with the logo and name of the product resulting in high purchasing power to the product. Thus supporting a group this could reach the mass audience attracting them concern the product. Thus support would make the output to get promoted and would increase the value of the brand in long-term resulting in product stabilization not only at sales
If brand is not able to meet the consumers expectations, consumer consider it’s a low-quality brand. Consumer compare the prices of brands. And purchase the product with best outcome in low price but in many cases, consumer can pay more for better results. The product has design which attract the customer and easy to carry. Fashion leaders purchase the product which is more stylish and can satisfy their ego.
These tools mostly used for spreading the awarenes of the new products, enhancing the recall of the brand but mostly for increasing the number of sales as the company needs profits to survive in the long term. The report have deeply looked at the communication tools in practice when the creative strategy for the new Cadbury product was set. The paper analysed in what situation it is better to use advertising, PR or direct marketing for the Cadbury brand, therefore the advantages and disadvantages of the tools were found. For example, it has been identified that advertising is one of the useful tool for brand promotion because it is able to reach a wider audience within the shortest possible time frame (Egan, 2007. P 194).
BARGAINING POWER OF CUSTOMERS: 1. Buyers require special customizations: customers nowadays desire and want special customizations for the demanded product and would less likely switch to a supplier without the ability to offer special customizations. This positively affects marathon oil. 2. Low buyer price sensitivity: when buyer do not care about the price about the demanded product, the price of the product increases and they still will but the product.
A sales promotion strategy is an activity that is designed to help boost the sales of a product or service. This can be done through an advertising campaign, public relation activities, a free sampling campaign, a free gift campaign, a trading stamps campaign, through demonstrations and exhibitions, through prize giving competitions, through temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails. The importance of a sales promotion strategy cannot be underestimated. This is because a sales promotion strategy is important to a business boosting its sales. When developing a sales promotion strategy for your business, it is important that you keep the following points in mind.
Therefore, it can also be stated that mass media helps in developing an excellent communication with the customers. According to La Rocca et al. (2015:170) stated that by communicating well with the customers assist the organisations to understand the expectation of their customers. The proper means of communication enable the companies to enhance their sales level thereby increasing the profit margin as well. The mass media is primarily employed by the companies in order to reach a mass audience thereby making the process of marketing more