The Importance Of Distinctive Organizational Challenges In Business

The company must factor in that each of their customers has lifetime value, a greater value than a small gain made on first sales. With competition in their sector, more penetration pricing would be appropriate. The penetrating pricing strategy would only make sense to retain customers; the pricing strategy must realize lifetime value, (University of Phoenix, 2011).

Market development is when a company is using an existing product but is marketing it in a new market such as other countries. This increases popularity for the service and the company.

Firms must consider many strategies when attempting to realize growth. Depending upon the stage of

This first strategy calls for the creation of more sales without changing the original product, which can achieved through the four P’s of marketing. The next strategy, market development, allows the supplier to find new markets for their current products by using demographic markets to see where the greatest revenue will be based on the target group you are selling to (seniors, teens, etc.). Product development is the next strategy which focuses on new products the modification of current products. This strategy is rather important as without evolving products to meet the ever changing needs of current and potential companies can see a loss in sales and would limit their ability to be competitive in the market. The final strategy is diversification. This strategy calls for companies to attain current or new businesses allowing them to “diversify” their offerings and break into new markets.

In order to acquire the market share in any segment, the company uses penetration pricing strategy aimed at increasing the number of consumers in an area. Apart from increasing the sales of the company, this strategy helps in increasing demand for the produce hence a positive result in productivity. In addition, the company uses promotional pricing strategy aimed at increasing the market share at the expense of the competitors (Ferrell & Hartline, 2011).

It also states in the textbook strategic marketing problems it defines market development strategy as a strategy where an organization introduces its existing offerings to markets its not currently

“Market penetration” is a relatively straightforward strategy, involving more sales of an existing product in an existing market. Existing customers need to be encouraged to buy more of the product or attract new customers. Businesses usually use different and effective promotional techniques or drop the prices to achieve this goal.

Will implement price penetration to gain the market share. Price penetration is where a business sets the price low with the goals of attracting customers and gaining market share. The price is raised once the market share is gained.

Marketing development is the act of increasing the total market served by a company by finding new customers and markets, or providing new products to existing customers and markets. An example of this for Nike is their sports clothes and trainers are always developing and coming out with new ideas.

Being able to acquire a new market may bring those new customers to their current market.

Marketing penetration, the decision to target current customers of a product or service (Dhar, Russ Winer and R., 2013). One of the main reasons why the first step to applying market penetration is important, it captures a sizable market and market growth, improve the amount of potential revenue growth and to know how well I am doing in the business. I will target new or competitor’s customers and my own customers. One of the things I find to work is to have location where it is convenient, so customers can have easy access. Too, making coupons available and percentage off is a great perk for customers who care to save a little extra. I also feel that any business can throw around words but a dedicated business person with a proactive attitude will do well. I would flood the market with my offers and products. I would also have on my website how my products are different from my

Market research denotes a systematic and an objective collection as well as analysis of data regarding a certain target market. This is inclusive of the level of competition and the environment. Market research plays a significant role in gaining an increased understanding of the issue under scrutiny. The importance of market research when implementing a new business strategy cannot be ignored. This is particularly important if a business wants to establish new operating locations as a diversification strategy. Therefore, it is important that when implementing the geographical expansion plan, Shake Shack should conduct effective research. Effective market research needs to be grounded on such factors such as the geographical location of the new operational area, population and target consumers.

penetration pricing strategy. All indications are that sales will continue to grow. In response to a

In the marketing world, before releasing a product onto the market a company would carry out research in all spectrums to investigate the targeted audience. Once market research is completed, marketing or advertising is carried out so that the targeted consumers can purchase and the company receives an earned profit from sales. Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably (Chartered Institute of Marketing, 2009). Marketing strategies need to tick off consumer needs and demand. Companies follow a set of marketing strategies to be able to achieve their set mission goals. Strategies like segmentation, targeting and positioning of the market is used to analyse the

Market Penetration: It focuses on expanding sales of the existing product in firms existing market. This can be achieved by a combination of pricing strategy , sales promotion and marketing and the objective of the firm is to be the dominant player in that market by driving out the competitors and increasing the loyal customer base. This would make it less risky and require less market research for the firm to expand as it can utilize its existing resources