Pricing Strategies

Cost-plus: a method of establishing a selling price in which an agreed percentage is added to the cost price to cover profit.

Value-based:  Pricing method based on the perceived worth of good or service to its intended customers.

 

Competitive: Good, service, or offer that can hold its own against competing products because it offers an attractive value for money proposition to its buyers.

Going-rate: Current percentage rate of a commission, discount, or interest.

 

Skimming: The illegal practice of taking money from cash receipts for personal use. "Skimming" refers to removing the top layer of a liquid. Because a person skimming is not reporting the cash as income it is not reported for taxation purposes, thus making skimming a form of tax evasion.

Discount: Deduction from the par value of a financial instrument, made in advance of its sale.

 

Loss-leader: Good or service advertised and sold at below cost price. Its purpose is to bring in (lead) customers in the retail store (usually a supermarket) on the assumption that, once inside the store, the customers will be stimulated to buy full priced items as well.

Psychological: Having to do with psychology, the study of the human mind and behavior.

 

Marketing Mix: Product

convenience goods: The items which are bought frequently, immediately and with minumum shoopping efforts. These include candy, ice-cream, cold drinks, cigarettes, magazines and medicines.

Shopping Goods: The items in which the consumer is willing to invest a great deal of time and effort. For example, consumers will spend a great deal of time looking for a new car or a medical procedure.

Specialty goods are those that are of interest only to a narrow segment of the population—e.g., drilling machines. Industrial goods can also be broken down into subgroups, depending on their uses.

Del Monte Can

National brand goods:brand name used by a manufacturer whenever that product is sold.For example, Del Monte is a national brand for food products.In contrast, many marketers offer products under a variety of brand names called private labels , unique to each distributor or retailer

Store, or private label brands are as the name suggests, brands that are owned by retail store chains or consortia thereof store brands sell at lower prices than do national brands. Product such as coffee, rice, canned vegetables, that carries the store’s name.

Regional brands, as the name suggests, are typically sold only in one area.For example, 

Shaoxing Hometex——a Famous Regional Brand in Zhejiang,China. It provide products about home texitles.

 

 

Co-branding involves firms using two or more brands together to maximize appeal to consumers. For example, Nike and iPod combine together produce the Nike+iPod Sports Kit, a device which measures and records the distance and pace of a walk or run.

Benefits of Brand Leader

    Brand Leader means most widely sold and recognized product in a particular market segment. Also called market leader, a brand leader usually also commands the largest profit margins. The benefit of brand leader is that they have higher sales than those of any competing business in the same market. And the product from the brand leader can be given the most prominent position in the shop. Even more, the brand leader can sell to shops with a lower discount rate because the shops have the higher demand of the brand product. Since the producer of the leading brand get the higher sales level and higher profits. Furthermore, the item or brand is the market leader can be used in advertising, because consumers are often more rely on the brand product then normal one, and they tend to buy the most popular brands.

How to Conquer Your Sales Fears

Christine Buffaloe, Founder, Serenity 

Virtual Assistant Services

    For most entrepreneurs, they struggle with many numbers of issues, such as, lack of confidence in themselves or their product and fear of sales. Experts say there can be overcome with the proper attitude, training and practice. Here are five of the most common fears about selling and how they can be conquered.
    
   Fear of making a negative first impression. It is important to giving people a good first impression. in order to do that, you can show credibility through your appearance and nonverbal behavior. wearing the cloth which is fit to the occasions. For example, wear a suit with tie when your audience is business people. and wear hot pink or purple when your audience is school-aged girls. Secondly, focus on nonverbal behaviors like smiling and open posture.
    
   Fear of being rejected. It is not 100% of the time you are success to sell product. Some experienced salespeople is able to come over for it, some newcomers may regard failure as the end of the world. First of all, understanding the reasons behind a rejection can help you refine your product. Then is award to know that the more you did it the better you become at it, and less fear was the result.
   
   Fear of  coming across as pushy. Maybe you have seen a salesperson who keep pushing and pressuring you to buy the product. this is a problem that mane business owners worry to be impolite to consumers. Expert suggests  to  focus more on having a conversation with consumers than simply selling, and learn the consumers' needs and ask yourself what you are offering is of real value to the person. when you care about your consumers, it is easier to develop a sense of trust, then you are more likely to make the sale.
   

Tanner Shepard, Co-founder, 

Ranch Road Creative Solutions

     Fear of unsure the right or wrong. Maybe some salesperson  can not  sure if they use the tight tactics and offering people what they need? Debra Condren, president and CEO of Manhattan Business Coaching and author of Ambition is not A Dirty Word recmmends learning sales techniques by attending a training program.  Tanner Shepard co-founded Austin, Texas-based Ranch Road Creative Solutions, a marketing services provider, in 2005, he gained confidence only after an intensive weekly sales course. "I had to challenge myself out of my comfort zone," he says.

Ethical in Different Countries

    In nowdays. ethical objectives become an important targets in companies. Here are some companies who do a good job or a bad job on the ethics.

 The Co-operative Food is a brand devised for the supermarket and convenience store business. It has a compact food ethical policy.They hace made several changes in theri Food stores, including banning the sale of eggs from caged hens, converting their entire own-brand hot beverage range to Fairtrade, radically reducing the weight of packaging for 26 different wines and adding a further 66 pesticides to their prohibited list. their new Ethical Operating Plan is now taking thier ethics even furt.

  

A team of the company's engineers and technicians in Los Cacaos



Barrick is one of the worst ethical company which is a Toronto-based gold-mining corporarion. It had a hand in the buring of at least 130 homes near its Porgera Mine in Papia New Guinea. The company was also blamed in a toxic spill in Tanzania that left dangerous levels of arsenic in the area around its North Mara mine. and its attempts to mine the Pascua Lama region along the Argentina-Chile border were associared with a 56-70% shrinking of nearby glaciers.

Interview With A Business Owner

Maybe many people are curious how an owner runs his/her business?   I interview a solder trader who runs a secondary sector such as retail shoes and cloth.  Let us know his personal experience by interviewing some questions.
   
What type of risks was involved in becoming a business owner?
Raising money is the biggest problem, and then the challenge is how to get profits to return back the money.

What are your greatest strengths as an owner?
First of all, I'm confident of myself, I think I can make enough profits through the hard working of all the staffs.
Then I can make sure every employee works well in their own area.

What type of market research did you do?
I should observe the customer target and focus on it, since to make sure that we input the right goods. Then I also have to know what the most popular fashion and color in every year in order to suit the customers' taste.

What did you anticipate would be the greatest challenge?
The greatest challenge is competition. There are more and more stores opening in the area since it create too many of the goods for sale. In an addition, because of the economic crisis, we lose many consumers and get lower profits.

Were there any ethical considerations you had to make?
Yes, first of all, being honest is the most important element for us. Many consumers are happy to come back to buy goods because they have trusted at us. And we have run this business for more than 10 years; many suppliers are relieved to output the goods without paying. Our staffs and I are like friends though I have the prestige among the staffs. I can take care of every staffs including their families. Also there are a small number of the staffs, which let me easier to pay attention to them.

From the interview, I hope you can get at least some information new to know.

Business New----Taiwan faces economical challenge

   Taiwan is the world's 24th largest economy and Asian's sixth largest, witch economic rising relates to rapid industrialization and hi-tech section. Therefore, in the latter of 20^th Century, it is referred to as the “Taiwan miracle”.

  

Denni Wang managed to transform his business to remain competitive

    However, it heavily relies on the tech sector which makes it turns down fast in the global economic crisis. Over the last five years, its growth has slowed to an average of 4%, especially in the years during the financial crisis in 2009. It seems Taiwan has to find a new formula for economic success.

  

A concept of business competition and survival.

  The most important challenge that Taiwan faces is growing competition. There’s going to be growing dominance from the particular Asia, Latin America and also Africa. Chinese hi-tech manufactures development is a big pressure. Therefore, Taiwan has designed to develop some industries which can outperform China, Such as tourism, medical, education and high-value agriculture services.   

   This case reflects every business in the world. It is natural to face competition from every area of business. In order to come over the decline and challenge during the development, they should find the main problems and figure out the correct way and new ideas to be success in the competition.