In recent days, the competition in the market has been the toughest one and therefore for a company to get competitive advantage over them is not an easy task to do so. You not only need to manage your products effectively, but you should also have good relationship with your customers. For this purpose the companies gives more value to its customers . Moreover, there are two steps that are quite helpful for a company in gaining the competitive advantage in the market.
Principle of Marketing
Principle of marketing are those rules and regulations, process and researches, which involves in finding the customers needs, wants, and then presenting a solution for them. We may also say principles of marketing are actually all about research and development, where we first analyze the market, infect we analyze the customers needs, then come with solution. We may also principle of marketing is all about identifying new ideas for business.
Whenever an advertising program is prepared, the marketing management should take into account the four advertising decisions.
Direct marketing is defined as communicating directly with the targeted customers on an individual basis so that immediate response can be obtained. Interaction must take place in Direct Marketing and therefore it is called two-way of communication.
For effective promotion of any product or service there are a number of marketing promotional tools that can be utilized in a promotion program. These should be applied carefully according to the given circumstances, because every promotional tool is suitable to certain circumstances. Following are the important types of marketing promotional tools that must be in your mind.
Marketing communications process consist of integrated activities in which the targeted audience is identified and a well coordinated promotional program is prepared to generate the desired response from the audience. Most problems of preferences, image and immediate awareness in the target customers is focused by the marketing communication. But there are certain limitations associated with the concept of communication. These limitations include high cost and short term duration that cannot generate the desired results from the targeted customers.
The storing, handling and moving of products and services so that the customers can get them at the right time, at the right place and in the right assortments is called logistics and function related with such activities are known as logistic function. Logistic function or logistic system is designed on the basis of the stated logistics objectives so that minimum cost would incur for the accomplishment of these objectives.
Vertical Marketing System
Before going towards the vertical marketing system and the types of vertical marketing system, lets talk about the links of distribution channels. A number of independent businesses are linked with each others in the form of a distribution channels. Previously these links are loose and each intermediary focuses primarily on its individual goals, and general distribution channel members do not fully cooperate with one another which resulted in the overall poor performance. One main reason of this poor performance was the lack of a leadership in the whole channel, which had created conflicts between the members. The members of the conventional distribution channel efforts to seek personal profit even at the expense of overall profit of the whole channel. Moreover, there is no proper system of roles and duties assigned to each member and no nominated bodies to resolve the conflicts.
Setting price for a product or service is not an easy task and your pricing approaches matters a lot in this regard. The price of a product or service is kept to a level that can generate both profit as well as demand. But generally the cost of the product or service provides the lower limit of the price and the perceived value by consumers provides the upper limit for setting price. Business Organizations should also take into account the prices of their competitors along with other internal and external factors. There are general Pricing Approaches that can be applied by businesses in setting prices for their products or services. These pricing approaches are of three types.
Price is the second important element of the marketing mix that needs to be properly determined and price change always took place in the market due to various factors. It is general that the successfully determined price of any product or service also requires some change due to many factors. This price change or price changes may be due to the changing demand or as a result of inflation or it may be originate as a reaction to the competitor prices. Whatever the reason may be, the price changes are an essential part of the business operations.
When a business manufactures a certain product then it can transfer the bulk of its product units to a large number of customers through marketing intermediaries. Distribution is an important function of any business which is not possible without the involvement of marketing intermediaries. Marketing Intermediaries consist of a chain of suppliers that help in effective delivery of products and services from the end of producers to the other end of consumers. It may include distributors, whole sellers and retailers, etc.