Can you help me understand this Business question?
A. Please comment about the paper written below (You can just explain it in a paragraph 250-300 words). You can add points to what its written. You can relate it to how it applies to past or current news events.
The purpose of the marketing mix strategy is to interface with the customer by employing a strategic platform (Proctor, 2000). The communication can be written, verbal, or via illustrative imagery that communicates product/service quality and the kind of distribution channel selected.Proctor explains that product positioning is the process of using images to influence consumer visualization. The image is reflective of the promotional message geared toward the market target, pricing strategy, the method of distribution, and product or service appearance.Products and services produce benefits for buyers: Good value for the money, novelty, availability, ease of use, good design, safety, and economical use. According to Proctor, benefits factor into the decision-making process for consumers. Thus, to assure benefits are produced, organizations/companies must focus on quality, features, options, style, brand name, packaging, sizes, services, warranties and returns.
Product mix refers to the host of products and services that are often offered by organizations, with 4 ways for an organization to increase its business:
1 The addition of new products
2 Increase the length of the product lines the company has by adding more items
3 Increase new product variations to augment the product mix
4 Consistency will be dependent on the organization’s desire to establish strong representation in a handful or numerous domains (Proctor, 2000).
Proctor notes that making decisions regarding product lines includes: abandoning low selling items, filling gaps missed by competitors, revamping, removing or discontinuing a product. Six mediums of decision-making are utilized:
1 Directly to purchaser/ or intermediary.
2 Employ single or multiple avenues of distribution.
3 Determining the length of time a particular channel should be used based on: Monetary resources, dimensions and completeness of items, median size of order, geographical cluster of customers and how far the distribution market is located.
4 The kind of channels used.
5 The number of distributers to be employed at every level.
6 Which medium to utilize.
The channels change based on changes in the marketing environment, the needs of buyers, and technical innovations.
The vertical marketing system is the trend, where activities are combined and overseen by 1 member of the medium. It decreases the cost factor, lessens problems among mediums and builds on the practical knowledge/expertise of other members. In contractual marketing systems organizations are able to retain control and legal autonomy, however the most powerful member leads. In horizontal systems 2 or more independent units ( may be rivals with the same ranking) in a medium coordinate, which decreases risk and promotes access to more channels of distribution, expediting market penetration (Proctor, 2000).
There are various approaches to price setting from a strategic perspective:
Marginal PricingCost-OrientedDemand-OrientedPrice SqueezePenetration/SkimmingCompetitionPsychological Dimension
Organizations can increase prices without increasing prices by:
1 Keeping customer price the same, but adjusting the discount format to allow increased profit for the company.
2 Small orders are no longer placed, and minimum order size is increased, which decreases the net costs.
3 Charge for delivery and special services.
4 Increase invoices for repairs on equipment the company buys.
5 Charge for engineering, installation and supervision services.
6 When overtime is required to complete rush orders transfer the cost of overtime pay to the Customers.
7 Collect interest on overdue accounts.
8 Get rid of items that have a low profit margin and replace with products with a higher profit margin.
9 Make escalator clauses part of bids for contracts.
10 Reduce the physical size of a product.
Price Leadership Strategy A specific supplier is normally regarded as the lead company in initiating changes in market prices. There are two types of price leadership. The first type refers to the biggest company with regards to market share, and/or the lowest-cost producer, who spearheads price adjustments with other businesses ready to follow suit because the new prices generate satisfactory profits for them. The second kind, occasionally referenced as barometric price leadership, is usually a smaller company that is chosen as the price leader, because it has shown to be able to notice changes in market conditions.Price leadership is frequently seen by suppliers as a way of systematizing pricing policies to control price competition and prevent price wars.
Frey (2019) outlines 10 ways a mind map can help generate focus on a strategic planning process through the use of mind mapping, which is a visual way to illustrate ideas and concepts. It is a visual thinking tool that facilitates the organization of information, that aids in better analyzation, understanding, synthesis, recollection and in creating new ideas.
1 Group brainstorming is powerful, as the groups work together the energy of the room is altered in a positive way.
2 Teams are able to see their ideas in context, promoting more participation, which helps them build on each other’s concepts more easily.
3 The team is able to capture the information right away, but organize it later on. The team has an infinite canvas at their disposal, allowing them to gather more information quicker, while at the same time giving them the option to sort through the information at a later date, so it keeps them focused on the activities at hand.
4 Freedom: Categorize ideas that are necessary. Icons, and symbols can be used as a visual codifiers. Common themed concepts can be groups together.
5 Focus! Concentrating on 1 map at a time, participants are not overwhelmed with data and information, allowing them to focus on current tasks.
6 Breaks down siloed thinking and fosters a “we” mentality instead of a “me” thought process, which allows them to arrive at an agreement and make decisions quicker.
7 Facilitates various thinking types such as SWOT, and PEST. Team members are able to engage in activities and conceive future visioning.
8 Allows divergent/convergent thinking, which encourages creative and analytical thought processing, and engages the rational and visual part of the brain.
9 Stimulates sense making, thus, team members are able to detect patterns in the information, prioritize and arrange it. Members can identify spheres that necessitate more research or discourse advancing them toward significant clarity.
B) Please summarize the video in 250 – 350 words. Below is the link.