Marketingstrategy is a set of plans outlined by a company that is focusing toventure into new markets with the aim of attracting more customers.Marketing strategy also aims at increasing sales volume as well asgaining a competitive advantage over the companies which producerelated products and services. A good marketing strategy will helpthe organization to create products which have better chances to makeprofit in the short term and long term. It involves conducting athorough market research on the targeted customer’s needs and wantsthat need to be satisfied and what competitors are offering in themarket.
Marketingstrategy that the company will take
Pricingstrategy-Pricecan be defined as the sums of values that consumers exchange for thebenefits of having or using certain products or services. It involvesthe process of identifying the optimum price to set for theorganization’s product and services with the focus of generatingrevenue and profits for the organization. Pricing requiresunderstanding the consumer’s desires that have not been met and theamount they are willing to pay in order for those desires to befulfilled (Nagle, 2013).
Pricingstrategy must take into account some factors if it is to be adoptedby the management. These factors include competition, variable andfixed costs, objectives of the company and the groups targeted andtheir willingness and ability to pay. In the case of our company weare interested in transforming our market from the low-end tohigher-end market using price. Pricing strategy is very important indifferentiating the customers in the different market segments. Thereare different approaches to pricing strategy which are discussed inthe below paragraphs.
Discountpricing is whereby organizations sell low-priced products in highquantities. The organizations exercise discount pricing by cuttingdown on costs such as production and distribution costs whileensuring that they do not alter the quality of the products.Discounts are used to reward customers who buy goods in large volumesas well as building strong customer relations. When selling ourproducts in the high-end target markets we offer products at slightlyhigher than the normal prices but at a discount ensuring that moreclients are attracted. Discount pricing will promote increase insales at the high-end market.
Premiumpricing is an approach which involves setting high prices to indicatethat the products are of high and unique quality. To penetrate thehigh-end market, our company has ensured that the products which areprovided to the market are marked at high prices than they were inthe low-end market. The assumption is that the customers value highlypriced products since they believe they are of high quality andprecious. The company has been keen to make sure that the productsmeet the expectations of the customers in the target market in termsof quality and value.
Competitionpricing is also employed in our companies pricing strategy. Thisstrategy involves studying the prices of the competitor companies’products in the market and setting prices using the competitor pricesas the reference. In the high-end market, our company has set highprices on differentiated products than those of Macy’s andNordstrom products. The high prices attract more customers since theyprefer quality not the price.
Finally,the organization will adopt cost based pricing approach in thesetting of prices for the products. The price of the product will beset by taking into account the cost incurred in the production anddistribution of the product in the high-end market. The products willbe valued at prices higher than the cost incurred directly andindirectly in their generation. The pricing approach ensures thatthere is a reasonable profit made from the manufacture and sale ofthe product.
Embracingpricing strategy aids the company in penetrating the high-end marketsince it offers products at prices which are most preferred there. Inaddition to that the company has offered unique products which areworth their price tags. The strategy helps also in gainingcompetitive advantage over the two rival companies significantly.
Productstrategy – thisis the planning done by an organization’s management on how toensure that their product is purchased by the target market. Ourorganization has come up with innovative ways of producing theproducts such that they more differentiated to satisfy needs ofdifferent customers. Differentiated products will also be expensivein the high-end market because they are also costly in production.The products should be different from those of the Macy’s Inc. andNordstrom’s Inc. so that they can offer the organization acompetitive advantage over them.
Theorganization has to promote the product mixes that are being offeredby the company by the use of media. The ads promoting the productsshould be done by prominent people in the United States so that thehigh-end customers value our products. Whenever the customers see theads about the products they will be willing to offer any amount ofmoney for the products.
Thereason our company employs product strategy is because it ensuresthat the customer awareness is created in advance in the high-market.The customers will have adequate knowledge of the product and pay forthem comfortably because they believe they are procuring high qualityproducts.
Inthe entry of the high-end market, the organization has to defineclearly the boundaries in the product and the market too. Theorganization has to ensure that it specifies the types of productsthat are to be provided in the target market. The firm has to ensurethat in the particular market segments, the different products whichoffered in the segments are slightly similar. The company has toensure that the products offered provide close substitutes in favorof the customers’ choices (Brooks, 2014).
Theorganization has to ensure that they have technological know tofacilitate the production of products which serve customer needs. Theuse of machines should not be compromised to alter personalinteraction with customers. In addition to technology, theorganization has to provide products which fit the client’s need intheir life. Our company provides clothing and jewelry which fitvarious occasions and functions happening in the high-end market. The organization has to maintain provision of products to customerswho have similar problems to be solved.
Theorganization has to plan on the market boundaries because it will beeasier to deliver the products to the exact groups of individuals whoneed them. Adequate information on the market helps in increasingcustomers’ level of satisfaction.
Segmentationis the division of the potential market into small groups ofconsumers with similar characteristics hence requiring differentproduct mixes. Our organization has embraced geographic segmentationwhereby the different states are offered different products dependingon the occasion. We have identified the metropolitan cities in theEast coast, Northern area and the south of United States. In thesemetropolitan cities, there are potential individuals in the units whowill make a prolific high-end market (Dickson, 2012).
Theorganization has also tried demographic segmentation when identifyingthe potential markets. In the areas identified, there existindividuals with high income and high social classes. These peoplewill provide a good high-end market.
Therationale of marketing segmentation is that it helps in increasingthe amount of sales because the organization will be selling toparticular people. Marketing segmentation is done after a seriousmarket research is done so the organization is able to deal specificgroups in the market confidently. Segmentation will increase customersatisfaction since they are provided with what they want by theorganization in the right time.
Customerrelationship management strategy
Customerrelationship management involves all practices of interactionsbetween the organization and its customers in the provision ofservices and products. It is a crucial tool in business managementthat has seen many organizations prevail in their operations (Kumar,2014). It involves understanding the customer needs precisely so thatthey can be dealt with accordingly. CRM strategy also focuses onretaining by providing them the best atmosphere in the shoppingpremises. In addition to the above objectives, CRM strategy aims atattracting new customers and winning their trust. Finally, CRM aimsat increasing profits in the long term by developing customerrelations which increase sales volume.
Ourorganization has come up with ideas on how to improve on customerrelations since they are the main reason why our business survives.The organization has therefore identified the following as the majorissues to address in relation to serving our esteemed customers.
First,we have invested in computers to aid in keeping of customers recordswhich ease market research since the records are used to study thecustomers’ behavior. The use of computers will also increase oureffectiveness and efficiency in our service provision in theorganization.
Wehave set up a good customer service to make sure that any follow ups,deliveries and complains are taken care of before they become athreat to our relation with the customers. Our premises are open 24hours a day and runs sevens day a week. There is also a telephoneline where customers make orders via telephone and any make otherenquiries.
Inaddition, we have a very friendly website where our customers canmake online purchases and enquiries about our products. We use thiswebsite to interact with our customers and provide information toanyone accessing the site.
Therationale of having Customer relationship management strategy is tohelp in building trust and confidence from customers. The customersof high-end market will feel as part of the organization because theyare treated well which translates into customer loyalty.
Strategyfor information collection
Anorganization needs to follow up on prospective customers so that theycan turn them into buying their products. Our organization will beusing the existing customers to attract new customers throughprovision of quality and unique products. In our social media pageswe post questions to the general public to get their views andopinions about our products.
Gettinginformation about prospective customers will help us in makingdecisions on how to win them. The information collected from thepotential customers helps us to know the weaknesses we could behaving and improve on them. It also provides us with more informationabout our competitors.
Nagle,T. T., Hogan, J. E., & Zale, J. (2013). The strategy and tacticsof pricing: A guide to growing more profitably.
Dickson,P. R., & Ginter, J. L. (2012). Market segmentation, productdifferentiation, and marketing strategy. Thejournal of marketing,1-10.
Kumar,V. (2014). Customerrelationship management. JohnWiley &Sons, Ltd
Brooks,G. R. (2014). Defining market boundaries. Strategicmanagement journal, 16(7),535-549.