BUSI 1600 Lecture Notes - Lecture 7: Cash Flow, Fax, Price Skimming
Document Summary
Position the company in light of the market characteristics & competition: the p"s refle(cid:272)t your strategy. Plan opening promotional activities to build awareness. Select right marketing mix to match your competitive advantage. Those things that a company controls and can be used to influence the customers to buy/continue to buy: product/service, price, place/distribution, promotion/communication. For services add: people, physical evidence, processes. Think about relationship between price & place. Late entry/mature markets: meet the competition, niche strategy. Early entry: high price, low price. Advantages: max cash flow for reinvestment, promotion, r&d, tests market prior to full-scale production, customers perceive high quality. Disadvantages: can cause ill will in market, attracts competitors. Advantages: fast market penetration, discourages competitor entry, focuses on customer value. Disadvantages: generates high volumes that must be met, requires large capital investment to meet high volumes, potentially large losses if errors are made, a tough way to compete. Premium pricing: high price but offers good quality.