By William M. LUTHER
This advisor indicates the way to arrange and increase a realistic advertising plan that covers 5 severe components; the product/service plan, advertising communications, study, customer support and revenues administration.
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Example text
Pricing strategy refers to deciding whether to price high to skim off those customers who are less sensitive to price or to price low to appeal to all and try to keep out competition. Expanding distribution is the process of finding new outlets through which to sell your product or service. Cost efficiency refers to an emphasis on controlling costs. Although cost efficiency is more important today in all market positions because of international competition, it is especially critical in the later stages of the life cycle, when your service is more of a commodity and price is more important to the customer.
Pricing strategy refers to deciding whether to price high to skim off those customers who are less sensitive to price or to price low to appeal to all and try to keep out competition. Expanding distribution is the process of finding new outlets through which to sell your product or service. Cost efficiency refers to an emphasis on controlling costs. Although cost efficiency is more important today in all market positions because of international competition, it is especially critical in the later stages of the life cycle, when your service is more of a commodity and price is more important to the customer.
Three major reasons are given to explain why market share leads to greater returns. First is economics of scale. The larger the business, the greater the savings in cost of goods, manufacturing, and marketing. Second is market power. A larger company is able to bargain more effectively, even to administer prices, and consequently receives a higher markup. For years, General Motors priced its cars to dealers just above the manufacturing costs of American Motors (eventually acquired by Chrysler).