Pricing Objectives

What price point should you set for your products and services? This important and common question can better be answered by determining company objectives. Several common company objectives are: Survival Maximize current profits Increase market share “Skim” the market Seek “product-quality leadership” Survival: Companies facing new and intense competition, over capacity, or changing consumer behavior […]

Determining Demand & Calculating Costs

Product Demand Different prices for a product result in different levels of consumer demand. Assuming consumers are rational, increasing the price of a product results in a decrease in the number of consumers who are willing to pay that price. In other words demand decreases when price increases. Of course, the world is not a […]

Dealing with Unhappy Customers

95% of your unhappy customers will never complain. They feel that complaining isn’t worth their effort, or they don’t know how, or to whom to complain. Listen to Your Unsatisfied Customers Carefully It’s essential to listen to customers who complain. Listening closely lets you fix any underlying problems with your business process, so that other […]

Marketing Strategies for Service Companies

Many services businesses are small (such as shoe repair shops and hair salons) and don’t use formal marketing techniques. There are also plenty of professional service businesses such as accounting and law firms that thought it was unprofessional to use marketing, and some still do, but this is changing. The classic four Ps marketing approach […]

Increasing Customer Satisfaction & Retention

It’s difficult to over-stress the importance of customer satisfaction. Sustained profitability is only possible through building customer value and satisfaction. Profit comes as a consequence of building customer value. As Henry Ford said: “Business must be run at a profit… else it will die. But when anyone tries to run a business solely for profit, […]

Essential Marketing Concepts

Marketing is a term we hear all the time, but what is it exactly? This article outlines some core marketing concepts. Marketing Definition Essentially, marketing means creating, promoting, and delivering goods and services to consumers and businesses. Marketing activities are not limited to products you buy in a store. The scope of what is marketed […]