“Success is the sum of small efforts, repeated day in and day out.
The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack in will”
It’s nothing to do with my topic, but I just saw these words and really like it, so just wanna share with you guys who need motivation to move on.
Ok, now let me go back on the right track…..marketing…….
Today, we learned about Five Cs of Pricing:
value: copany objectives, customers, competition, costs,channel members
5Cs: Company Objectives
– Sales orientation: Max volume. which means it focuses on market share : market share is the greast predictor for LR success
I think sales orientation are for ordinary customers and provide daily life products or basic need products, such food or clothes. However, sometimes, even the same type of basic products, their target market is still different. Such as foods, there are many organic foods in the market which charge fairly high and mainly provide for richer customers.
– Profit orientation: Max profit or return: not so focus on share volume, charge as much as they can, not decrease the price. not only in SR, try to get profit as much as they can from small volume.
I think a good example is the jewelery company. Usually the price is pretty high for a well-made necklace or ring. and customers wont buy jewelery as often as they purchase foods. Therefore, the sale volume are not that high. But the price is very high and the company can earn much profit from selling one jewelery.
– Competitor orientation: relative to competitiors
– Customer orientation: max value: consider customer how much they will pay and how they value: relates to scarfice, dollar value and time, efforts.
I think this kind of orientation is more and more apparent and important in the future. Since our market is more value-orientated, companies should set up the customer orientation so that they can keep long term relationship with their customers. And nowadays, there are many different ways for customer to search product information and then compare. So they will know the product information better then before. So focusing on the value they can receive should arouse companies’ attention.