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In order to plan the company’s profitability in the short run and stop the negative trends and the recession it is necessary to make certain steps to improve the elements of the marketing mix, which clearly shows a consistent pattern sequencing of the major marketing functions. For this it is necessary to follow the following conditions:
1. The proposed product should be available to consumers and they must be interested in it, so the following function of the marketing mix should address this problem.
2. The consumer always appreciates goods not only on the basis of a set of their consumer properties, but also on the amount of those costs that are associated with its acquisition. Here we are talking about a certain marketing price-quality ratio. Specialists more clearly define this relationship as a “utility-quality”: the consumer examines the usefulness of the proposed goods to him and acceptable to him the price of this utility. Hence, the following components of the marketing mix – pricing policy.
In this strategy, the following activities are recommended:
1. Reducing the wholesale and retail prices for the same goods, which offer
2. Improving the company image (logos, promotional brochures and
full-color catalogs of their products).
3. Increase sales force.
4. The development of new technologies and the development of new marketing and
attracting customers (creating an advertising site or online store).
5. Improving the customer service (reduce delivery time, improved warranty).
6. Broadening the number of distributors
The ultimate goal of our strategy – attracting more customers, that will provide a greater volume of sales and, consequently, more profit.
I can advise the company Sainsbury to use the strategy of passive marketing. The strategy is characterized by low prices for goods and services and the minimum cost of sales promotion. Due to the difficult economic situation in the company and recession process, we can confidently say that the level of customer demand is mainly determined by the price, ie lower marketing costs provide a sufficient profit margin on sales. In addition, customers are well informed about products and services offered by such firms. This strategy will be effective in the initial phase of the company. The process of development involves a significant increase in marketing expenses.
The main factor for choosing this strategy is the implementation of these types of products through sales agents, who in turn develop each for himself a definite strategy implementation within the established rules. This approach is justified in all respects, as no buyer is looking for a seller and the seller is looking for a buyer, and in addition to that clients receive professional assistance specialist.
When providing the positioning of goods and services to market the company Sainsbury should choose this path: to position itself close to competing firms and to start fighting for market share. With respect to other competitors, it has greater resources and more competitive. Decisions about positioning are taken on the following grounds:
– To complete the identification of product characteristics with the needs and desires of customers;custom term paper
– Based on a large range of goods;
– On the basis of lower prices offered;
– To create the image of your company through more effective customer service and flexible system of discounts.
The purpose of the advertising campaign of Sainsbury should be to improve the image and stimulate demand for all goods and services produced by this company, especially when planning the advertising of its selected products and services. The subjects of advertising are all institutions and enterprises in the city and region.
Sales promotion activities should be directed to the buyer.
For the consumer to some commercial gain, Sainsbury may offer the following discounts:
– Bonus discounts: they are granted regular customers when within 6 months they are doing at least 3 orders. The value of this type of discounts depending on the amount of the order, from 5 to 10%;
– Seasonal discounts: available for customers purchasing goods outside the active season of its sales (summer time). It is 5%;
– Discount on the discount card when a customer transfers to the account of the company the seller a certain sum of money and for one year at any time can gain discounted 10%;
– Commercial agents the opportunity to decide the size of discounts to specific customers, depending on consumption. For discounts of this nature:
– Trading agent may make discounts to customers (including personal promotion) due to its percentage of the sales;
– If the salesperson is working with major customers that require significant discounts, the company provides an opportunity to increase the discount to the wholesale price up to 15%.
These activities will help to increase sales of the company and increase profits.
In conclusion, all these aspects of the marketing strategy for the company are called to lead to good changes in the results of the company and stop the recession process.
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