Free Marketing Dissertations - The Next Step In The Process, Once A Product / Service Has Been Developed Or
The next step in the process, once a product / service has been developed or defined and the markets have been selected, is to devise an appropriate pricing strategy that will enable the company to enter the market and gain market share as fast as possible. There are four main types of pricing strategies an organisation could adopt when entering a new market or when introducing a new product. These comprise:
Premium if the product or service is special and unique, a company will charge a high price, to emphasize the unique characteristics of its product offer.
Penetration prices are set low purposely, to facilitate the company’s entry into the market and gain market share quickly. Once the product is known, the company will set a higher price.
Economic pricing this means that the company will keep charging very low prices for specific products.
Skimming firms that have a competitive advantage will set high prices which, eventually will fall because of new competitors entering the market.
The organisation will have to choose the one that best fits their product and overall strategy.
Promotion is a very important element of an organisation’s strategy. A sound promotional and marketing strategy in general, will help the company increase their sales potential and eventually, achieve top sales revenues. Informing buyers about a company’s products or services and making them ‘product-aware’ is fundamental. Promotion techniques can be classified as: advertising; public relations and personal selling. Advertising usually consists of media advertising i.e. television; radio; internet; newspapers and magazines. Personal selling involves activities such as telemarketing and customer presentations. Especially, when moving to a foreign country, this is a strategic aspect that should be planned and executed, in order to allow for a suitable company’s / product’s introduction into the new market. Needless to say, that it should be consistent with the local promotional strategies.
The above are fundamental factors that an organisation should be paying close attention to when developing an international strategy. We have seen, as in the case of Penske Logistics, how important it is to conduct thorough market research prior to a company moving to a foreign market. Simply because consumers’ expectations regarding a certain product or service, tend to differ from country to country. This is indeed the case still, within the European Union itself. Nonetheless, evidence shows that a high number of companies still make costly strategic mistakes due to poor planning. Therefore, non-cultural factors can definitely have a negative effect on the organisation, if not properly thought out and executed.
However, my opinion is that cultural factors can have a greater impact on an organisation operating abroad, than non-cultural ones.
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