By Michael Armstrong
This advisor to trendy options in all fields of administration is a perfect significant other for pro managers, in addition to an important reference publication for enterprise and administration scholars. It comprises over a hundred systematic and analytical equipment used to help in decision-making and to enhance potency and effectiveness.
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Develop new distribution channels. Reduce prices to attract the next layer of price-sensitive buyers. Maturity stage ᔢ ᔢ ᔢ ᔢ ᔢ Find new market segments and customers. Reposition brand to appeal to a larger or faster-growing segment. Encourage increased usage among existing customers. Modify product characteristics – new features, style improvements. Modify marketing mix, eg cut prices, advertise or promote more aggressively, move into higher-volume market channels. Decline stage ᔢ Maintain brand in the hope that competitors will withdraw their products.
The market leader makes the first move on prices, up or down, and his or her competitors tend to follow. When using this approach, the company has to decide on its pricing policy. It may go for market leadership, bearing in mind John Winkler’s1 advice that ‘Market leaders make most money. ’ Or the company may decide to maintain its prices in line with the average or broadly in the middle segment of the range. It may then follow a policy of parallel pricing by aligning its price increases with those of its competitors.
The choice includes obvious channels such as retail outlets and wholesalers, but it may also include such approaches as business format franchising and mail order, as summarized below. The internet is being increasingly used. Business format franchising Business format franchising is a system of selling and distribution organized through a contract between a principal seller (franchiser) and distributive outlets (owned by franchisees). This depends on the franchiser having an idea, a powerful brand name, and a ‘secret process’ or specialized equipment or goodwill that can attract customers.
A Handbook of Management Techniques by Michael Armstrong