Price as one of the 4 P's.
Task 12: Price Price is another one of the 4P's which is very important in marketing as most people cannot afford to buy anything no matter what the price is instead people's decision on buying a product is usually if the price right and if they can afford it. For price businesses use different types of strategies to price their products, incorrect pricing leads to costumers not buying their products therefore will loose income and turn bankrupt if a sol trader like I am. Price has always been a very important factor in the marketing mix but it's even more vital in today's competitive environment when businesses have to compete ruthlessly with their competitors. There are many factors that affect the price a business might charge. A business usually will look at its competitor's prices and see what they are charging then they can price their according. Also for a new business like mine I'm going to keep in mind that I am a new company without a reputation so I must have low prices other wise consumers will prefer to go to a well known brand so I have to try and get consumers attention. Other factors include looking at supply and demand once they research this they have to choose their strategies depending on the time and product. There are seven main strategies I will be looking at and comparing which one is best for my business and when. Penetration pricing: This is when
Tesco Stakeholders
What are Stakeholders? Stake holders are a certain group of people that have an interest in a business. Each group have their own interests in the business. Tesco has many stakeholders. They are as follows: * Shareholders * Customers * Employees * Government * Local Community * Suppliers * Financers * Pressure Groups Now I will explain what interests each group has: Customers. Generally a customer wants quality goods at a low cost. They would also want a variety of products to choose from. All customers want these things and by Tesco providing them Tesco will attract more customers because of people talking about it (Word-Of-Mouth). Tesco like most business' need their customers because they are the business' income as the customers are the people who buy Tesco's products. The customers are a bit like a pressure group because they apply pressure to Tesco to meet their needs. Meeting the customer's needs can be things such as expanding their stores or giving more variety on certain products. Tesco have feedback forms in their stores which allow customers to communicate with Tesco and tell how stores can be improved. This makes Tesco a more competitive supermarket. The comments Tesco will receive on their feedback forms will have a great influence on Tesco making them improve their stores to suit the customer needs. I think that the customer's comments have
"Using demand and supply diagrams explain recent changes in the price in coffee"
Economics "Using demand and supply diagrams explain recent changes in the price in coffee" Introduction A market exists wherever there are buyers an sellers of a particular good. Buyers demand goods from the market whilst sellers supply goods onto the market. Demand is the quantity of goods or services that will be bought at any given price over a period of time. The demand curve is downward sloping, showing that the lower the price, the higher will be the quantity demanded of a good. Demand curve Supply in economics is defined as the quantity of goods that sellers are prepared to sell at any given price over a period of time. The supply curve is upward sloping, showing that firms increase production of a good as its price increases. This is because a higher price enables firms to make profit on the increased output whereas at the lower price they would have made a loss on it. Supply curve If in a market there is more supply than demand there is then a surplus of this good. A rise in the price of this good leads to a rise in the quantity supplied shown by a movement along the supply curve. The change in supply can be caused by a change in production costs, technology and the price of other goods. At a lower price some firms will cut back on relatively unprofitable production whereas others will stop production altogether. The demand for a good will rise or fall if
Competitive Advantage - Microsoft Case
When trying to spill the beans of MS's success, the titles of two books from Bill Gates slip into my mind. They are "The Road Ahead" and "Business @ the speed of thought", which I would translate into "Direction" and "Speed" and could be the reason for MS's success - be good at setting strategy and adapting to the changes. However, to reframe them within the context of Modern Competitive Strategy, the reasons for MS's success are to create and maintain its modern COMPETITIVE ADVANTAGES. With the analysis of it competitive advantages, MS's profitability was more rely on its ability to DEFEND its market position rather than to create. To put it another way, the usage of MS's resources and capabilities can be better understood in light of isolating mechanisms. On one hand, MS focus on increasing customer retention. Software is an experience good. It can be tell exactly from the name - Windows XP - where XP is short for experience. For an experience good, the search costs, training cost and learning cost are high, which in turn help to increase customer retention. Here is a classic example. In 1998, Bill Gates gave his speech at Washington University and talk about piracy in China, and he said: "About 3 million computers get sold every year in China, but people don't pay for the software. Someday they will, though. As long as they are going to steal it, we want them to steal
Demand and Supply for housing
Demand and Supply for housing The determination of prices in local and regional housing markets is a classic example of microeconomics in action! We are seeing the interaction between buyer and seller with prices being offered and agreed before a final transaction is made. In this section we focus on the demand and supply side factors that determine the value of properties in a market. Each housing transaction in the UK depends on (a) The price that the seller is willing to agree for their property with the prospective buyer (b) The actual price that the buyer is willing and able to pay. Buyers place offers for a property that the seller can either accept or reject A Sellers Market When the market demand for properties in a particular area is high and when there is a shortage of good quality properties (i.e. supply is scarce) then the balance of power in the market shifts towards the seller. This is because there is likely to be excess demand in the market for good properties. Sellers can wait for offers on their property to reach (or exceed) their minimum selling price. A Buyers Market Conversely when demand both for new and older housing is weak and when there is a glut of properties available on the market, then the power switches to potential buyers. They have a much wider choice of housing available and they should be able to negotiate a price that is
T-Mobile Marketing strategy suggestion
A marketing strategy suggestion for T-Mobile Marketing strategy section Lewis Cuddy My marketing strategy suggestion To account for the modern necessity of e-commerce I would improve the T-Mobile website. The T-Mobile website is already very effective and offers almost everything available in a shop therefore there are only two ways in which I feel improvements can be made; Offering a phone comparison feature would be very useful. This feature would allow customers to compare the functions, specifications and prices of several products at once. When loading one of the 'shop' pages such as pay as you go deals I found the initial page very overpowering. There is a lot of information and graphics on a single page and therefore I would recommend simplifying these pages. I would recommend two new sponsorship deals, one with Manchester United FC and the second with X-Factor. Manchester United FC is not only regarded as the best British football club but they also have the largest fanbase in the world. This would increase sales with Man United fans and the publicity would be immense considering T-Mobile would be branded on every football kit and across the stadium. The Manchester United stadium alone supports over 76,000 people and this combined with viewers of TV coverage add up to an average of 8million viewers. Manchester United is renowned for reaching finals and in most
Stock Market Crash
Stock Market Crash A stock market crash is a sudden decline of stock prices in stock markets. It usually happens due to panic among stockholders and various economic factors. These crashes usually occur after a long period of rising stock prices (due to going speculations), when P/E ratios are far above their averages. According to Benjamin Graham, the father of securities analysis, there are three main forces behind the market crash: the manipulation of stocks, the lending of money to buy stocks and excessive optimism. The most famous market crash, the Wall Street Crash of 1929, also known as Black Tuesday, happened on October, 29 1929. It is regarded as a start of the Great Depression. All of the three forces mentioned above contributed to this crash. American economy was blooming in the 1920s. NYSE was the largest stock market in the world. From 1920 till 1929 many stocks quadrupled in value. Thus, many people invested their money in stocks, expecting to gain profit. It led to speculative boom that took place in late twenties: the rising share prices were encouraging people to invest even more. Many of the investors had to borrow money to buy stocks but they only had to have 10% equity and 90% margin to buy securities. Speculations on stocks stimulated further price rises and created an economic bubble. The P/E ratios in 1929 were far
Types of businesses - Marks and Spencer is a (PLC) Public Limited Company.
Task 2- Types of businesses Marks and Spencer is a (PLC) Public Limited Company, it offers its shares to the general public, often through the Stock Exchange. It is the share prices of these types of companies that are displayed in the daily press. Most of the larger companies are public limited companies, so they keep Household names like Marks and Spencer. The first owner of Marks and Spencer was Michael Marks; he started the company as a sole trader until 1894 Michael formed a partnership with Tom Spencer, a former wholesale company IJ Dewhirst, from the partnership the company started to expand. Tom Spencer died on 25 July 1905 and after 2 years Michael Marks died on 31 December 1907. It was then time for the owners today at that time to advance the success of the two founders. In 1926, Marks and Spencer became a public company and 2 years later the St Michael Trade Mark was registered. Through out the years Marks and Spencer has been expanding till today. Food departments have been opened such as café bars during these several years and many other methods have been used through out the years. Overall, we can see that growing the organization Marks and Spencer was done by four steps, firstly starting as a Sole trader, where Michael had to invest his own money and had to take risks. He had to carry out all the functions of the business. For Michael Marks this meant
The impact of economies and diseconomies of scale Tesco face
The impact of economies and diseconomies of scale Tesco face As businesses grow and their output increases, they commonly benefit from a reduction in average costs of production. Total costs will increase with increases in output, but the cost of producing each unit falls as output increases. This reduction in average costs is what gives larger firms a competitive advantage over smaller firms. This fall in average costs as output increases is known as Economies of Scale. Tesco benefit from economies of scale because they are constantly opening new stores around the country, such as their new store in Stockport. Therefore, they are always increasing their output, and so benefit from lower average costs. That is why Tesco seem to have the monopoly is supermarkets, as they have an advantage over smaller supermarkets such as Morissons, who do not buy as much quantity. In the short run, Tesco benefit from economies of scale by selling in bulk. They do this using special offers, such as 'If you spend £50, you get 5p per litre off your fuel' and also 'Buy one get one free'. These offers encourage us, the consumers, to buy in bulk. This means Tesco are benefiting from economies of scale as they are selling more quantity of their products, and are then able to buy more, and hence reduce their average costs. Tesco also benefit from economies of scale in the long run, because as
Tesco's organisational structure
Task 1 Organisation: TESCO plc Our Mission TESCO is a company, which is dedicated to professional management of both people and property. They are committed to each other through mutual respect and support. We realize the importance of individual growth in order to strengthen the whole. They invest in the development of the individual through training, education and reward. TESCO is committed to serve our owners, our residents, agencies and each other with integrity, fairness and honesty. They seek a balance between preservation of our resources and realization of profit. TESCO's strive to combine accuracy and reliability with accountability. TESCO is a caring organization that endeavours to exhibit PRIDE IN EXCELLENCE AIMS AND OBJECTIVE > TO INCREASE PROFIT: TESCO 's profits have topped analysts' forecasts, coming in at £1.4bn, with turnover up 11.5% at £28.6bn. Britain's biggest food retailer also said it had achieved its target for emerging markets as underlying operating profits rose 78% to £212m. Analysts had forecast that the underlying pre-tax profit would be between £1.33bn and £1.39bn. Six years ago, TESCO launched a four-pronged plan to drive growth in food, non-food, and retail services like banking and overseas hypermarkets in places like Asia and central Europe. > TESCO expands TESCO has been expanding more than ever for previous six
