Why is it critically important for a brand and/or company to price their product and/or service correctly the first time?
What does “Price Elasticity of Demand” mean? What are the two approaches to pricing and why are they important?
How can choosing the wrong marketing channels impact a brand or company’s business? How should a brand go about choosing the proper marketing channels?
How can a brand or company’s supply chain be a competitive advantage or competitive disadvantage?
then Reply to the below discussion for 150 words：
Question 1 (part 1): Why is it critically important for a brand and company to price their product and service the first time correctly?
It is essential for a company to set the prices of its products correctly when introducing a new product in the market . Amount determines it is a factor to consider as a way of attracting new and prime customer to purchase a given product. Price determination, which will be affordable to the consumers, is essential to consider. The company will set affordable prices that will not exploit the consumers; customers are the vital aspects of an organization without customer competence; the business will drastically fall. Before a company launches a new product, it first has to consider different price values equations that will find all the factors such as the customer’s financial status, convenience, the quality grade of the product and finally the company should consider the brand identity and unique product features . It is advisable for companies to set their product price moderately in order not exploit the more significant part of the company the customers, and the prices set the company will be able to gain some profit from the product sales.
Question one (part 2): What does “Price Elasticity of Demand” mean? What are the two approaches to pricing and why are they important?
Price elasticity of demand is the percentage change in the quantity of good and services demanded divided by the price change percentage. There two ways in which a company can determine the price of a given product . The two pricing approaches include cost-based pricing and demand-based pricing. The cost pricing approach is an approach where the final price of a product is determined by adding the production cost of the product and the set product cost; Cost-pricing technique have divided into two major division, which includes cost plus pricing and markup pricing methods. Demand -based pricing technique is a technique that a company uses to determine the final prices of a given product by the organization depending on the demand rate of the product. If the product has a high demand, the company will have to set the product so high in order to maximize their profits and when the product demand is deficient, the company will lower the product prices.
Question 2 (part 1): How can you choose the wrong marketing channels to impact a brand or company’s business? How should a brand go about selecting the proper marketing channels?
If a given company does not choose the appropriate marketing channel, the wrong marketing channel leads to a negative effect on the company, the company with face some changes(“5 Ways To Ensure Your Product Launch Is A Success – Custom Software Product Development | Zittel Blog”, 2019). Reputational risk is an impact that the company will face since the weak marketing channel will lead to the information of the given company not effectively reaching the targeted groups. The image of the company will not be clearly portrayed once the company chooses the wrong channel. Another challenge that a company will face when an unappropriated marketing channel have been selected is that the company will not be able to target on the available potential shareholders and investors who may want to take part in the operations of the respective company. Mix and mismatch is another challenge a company with a lousy choice of marketing channel will face. The chain is not reliable enough to target the potential customers of the given product of the company. The company will not be able to establish an active link with customers and the shareholders.
There are steps that a company can follow to make the right marketing channels and be able to target the audience he wants awareness of the company and its products to be reached easily. There steps to follow in choosing the appropriate channel for your company’s products includes, first is reviewing the currently used marketing channel and determining its reliability and performance. Reviewing the channel also ensure the chain can decide on the shortcoming of the channel used. .Another way to establish the right marketing channel is that after reviewing the currently used marketing channel, it is better to make the advancement of the marketing channel and increase its operational properties. The marketing channel chosen should be able to meet the company’s satisfaction level. Customer fit satisfaction and the chain should be market fit. Another aspect to consider is advancing the marketing strategy to a better innovative strategy version, which is affordable; this much focuses on technological advancements.
Question 2 (part 2): How can a brand or company’s supply chain be a competitive advantage or competitive disadvantage?
There are various ways that a company and its brand can follow to achieve a competitive advantage from its supply chain . The primary role of the chain supply is to create a channel of the amount of your company’s products to the respective customers. The supply chain can also significantly affect your business since the chain can create appropriate innovative ways that can change to the company, increasing its profit margins at ease. For the supply chain to impact significant competitive advantages the company should majorly focus on some factors as follows, the fist is maximum technology utilization where the more profit the company has to utilize the technology effectivity by first improving the technological level of the chain supply through supply chain automation and robot utilization. The company should also be adaptive to agile process may occur and thus reducing the distribution volume through the supply chain . And finally, the company can gain a competitive advantage from the supply chain through maximizing supply chain partnership by making the supply of your company’s products to be affordable and viewing the suppliers as a valuable resource. Suppliers are the one who can give a review of the product performance in the market.
Competitive supply chain disadvantage can lead to the company profit lose and lease to the companies daily operations to be interrupted, The difficulty of the chain supply is that the main goal and objective of the company are lost since the chain analysis majorly focuses on the overall operations of the company to be broken into segments which are very disadvantageous.