Business Learning Centre

Business strategies in a complex environment: Prices and Promotional Activity

At present this strategy is very sensitive not only to be valued significantly by the final consumer, but because it is a source of confrontation between manufacturers and distributors.

1. Integrate the decisions of price and promotional policies in an apartment as a way to manage more efficiently
This will be more prepared resources, facilitate communication with the other hand, better manage the tools of analysis and work with more information to provide accurate conclusions on buyer behavior.

Pricing strategies should not include an annual increase based on variables such as CPI automatically. This generates strong points of discussion between manufacturers and distributors.

It is necessary to reconsider the offer price because consumers will punish us immediately if you offer him no help.

Besides taking into account variables such as the scope of both the manufacturer and the retailer, costs of production, distribution and marketing, brand strength, it is necessary to study other variables such as the elasticity of not only the brand but the item in question , the purchaser of the chain and role of the mark or reference within the category.

It is possible that prices may rise at a different time to start the year and must keep a few references and other prices rise in a significant percentage, or even that minor increases may arise several times throughout the year.

2. Create promotions tailored to the consumer and buyer
Understand the parameters of in-store purchase is critical to design more efficient promotions. These promotions are those which reach the consumer segment and provide more selected an investment return with much more controlled.

Leaning on loyalty card information and studies of buyer selling point is the key to the design of this promotional activity.

Again, this can not be done without close cooperation between manufacturers and distributors.

3. Analysis of promotional results
If we enter into the dynamics of sharing the business we handle, a critical activity in the promotional field is the analysis of the results and making decisions based on them.

Conduct at least quarterly analysis would be desirable to evaluate the promotional impact

The conclusions should be coupled with action decisions on action to redo or delete it, change the design or execution of subsequent actions, redirect investment into variable costs rather than fixed, adjust the items promoted to the type of promotion and knowledge of the buyer to shift the responsibility of design or execution.

This requires automated analysis focused as a promotional stage of the process of promotion, making sure the information needed to do and developing the tools to carry it out.

Possibly Related Articles:

• Concept and Examples of Marketing Strategies
  Marketing strategies, also known as Marketing Strategies, Marketing Strategies and Business Strategies, consist of actions carried out to achieve a specific objective related to marketing. Examples o...
• Cost Leadership Strategy
  Accounts for competitive advantage through a cost advantage, or by costs as low as possible. Thus, the company will be in a position of advantage not only from competitors but also with suppliers and ...