Pricing Kudler wishes to offer competitive pricing relative to other caterers. In order to do this, it must develop a successful pricing strategy. Kudler has many pricing options at its disposal; however, the best pricing model Kudler should use is the competition based pricing
Low customer satisfaction is another internal weakness that is crucial to the success of CanGo. Another internal weakness includes severe communication issues within CanGo’s management and employees. External threats such as competition, plays a big role in the future success of CanGo. Your organizations internal organizational strengths such as online growth, and cost advantage offers great potential if properly utilized. Another external threat includes economic slowdown.
There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices. This is what some firms in the leisure industry will aim to do, for instance, Cinemas will hope to achieve the highest level of profits. Although most firms in the leisure industry aim to maximise profit, some firms have other main objectives, such as to maximise growth. Growth maximisation is where the firm’s main goal is to increase the size of the firm as much as possible.
If the income of the business is more than the expenses then the company has made money and vice versa. The figures covered in the income statement are important to its managers and owners, but also to their investors and creditors’.
This advantage is most especially important in the technologies sector, in which a definitive product of specific design or purpose sets the standards for which other organizations can find most difficult to match. Though designs may be similiar in style, the cause of entering into an untapped “arena” may provide unparalled precedence in the industry. Additionally, being a first mover provides the organization the ability to set pricing at whichever value suffices its tactical goals (primary goals), as well as an enhanced demand for a rather new and innovative product. However, the problem with being a first mover is actually based upon the contrary to what is mentioned above. Without prior market penetration of an organization’s competetitors, the usefulness and effectiveness of properly marketing a new product or service can be quite burdensome.
Finally, we have seen how these incentives affect different types of organizations. We have seen cases where companies move for reasons that other may consider small like consultation, or travel. While others move because of additional material benefits, such as lower labor, and shipping costs. Because of the importance of this decision an organization should study the different types of incentives and chose the most beneficial to their
Adjustments to stock levels should be made if it is needed. Another threat could be in the process of forecasting. Forecasting which items to carry and how much to carry is always a challenge. Using historical data on which items have sold well in the past and what quantities have sold will provide a good indication of what items and what quantities to carry in the future. There is also a threat when it comes to Kudler’s competitors.
Task 1 The marketing mix is developed on four main elements known as Product, Price, Promotion and Place, but the marketing mix can also be extended by adding another three elements these are People, Process and Physical. Product – This is where a decision is made on what product or service should be offered to customers. This could also be improving an existing product or service, it is very important that technology based are updated as they may become out of date very quickly which would make them inferior to the competition. To create competitive advantage organisations may also use the product for brand naming, packaging and a guarantee that accompanies the product. Price – Price is a very important part of the marketing mix
It is unlikely that those firms will integrate backwards; such activities are very different. However, network owners mostly integrate forward. However, network owners do not rely solely on ISP business, they also generate revenues from other sources such as telephone, advertisement and TV. Thus, it is conceived that the supplier bargaining power is strong. Furthermore, the current strong growth is alleviating most of competition pressure which is going to be more intense once the market reaches high saturation levels.
This affects us greatly because what we give is what we now get. In chapter one Pariser states, “Your behavior is now commodity, a tiny piece of a market that provides a platform for the personalization of the whole internet". To put in other words, your personal information is sold so businesses know what to sell. An interesting quote is added in this chapter, “If you get something for free, you’re the product, not the customer"(Pariser45). What is meant by this is sites such as Google or Facebook give us free services, or so we think, but what is really happening is they collect our personal information and sell them to businesses so they can use it to lure us into buying their products through specialized ads.