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Pricing Strategies

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Pricing Strategies Price is a very important factor for any product as it is instrumental in affecting how well it sells and how large a company's margins are. Companies must ensure that their product is not priced too low to signal poor quality and shrink margins or too high, which may decrease repurchases and orders in general. There are numerous strategies that companies can pick from when pricing products. In this blog I will discuss the strategies of market skimming and market penetration and how companies use them to launch new products. Market skimming Market skimming is a pricing strategy in which a company charges the highest initial price that customers are willing to pay and then lowers it over time. The price is lowered once the demand of customers willing to pay more has been satisfied (Hayes.A, 2022). This is a very useful strategy for big companies like Apple when they want to launch new products as they can successfully gather as much revenue from each customer grou...
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STP Analysis for McDonald's

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STP Analysis for McDonald's McDonald's is a hugely successful fast-food chain with over 40,000 stores worldwide (Statista, 2022). The marketing strategy used by the company has played a major role in its success. The STP model for marketing helps companies deliver personalised messages to customers and audiences in order to engage them (Hanlon. A, 2022). In this blog I will analyse how the company uses segmentation, targeting and brand positioning to ensure global success for the business. Segmentation Segmentation involves identifying groups of target customers and the characteristics of each segment (Hanlon. A, 2022). The four types of market segmentation used by companies, such as McDonald's, are: demographic, psychographic, behavioural and geographic. Segmentation is important to understand the needs and wants of the clients, as well as their buying behaviours. Whilst many companies may try to target very specific demographics of customers, McDonald's maintains a la...
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How Nike uses Market Segmentation

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 How Nike uses Market Segmentation Nike is a worldwide business that designs and sells sportswear. They are a hugely successful company both commercially and in terms of their cultural impact. Nike takes steps to segment the market, then target specific groups and then finally position itself to attract customers. In this blog I will talk about how Nike segments the market in order to ensure they can target groups of customers to generate revenue. Psychographic Segmentation Nike has achieved a large dominion over the sports market with "45% of general athletic footwear and up to 96% of footwear used in basketball" (Wells. T, 2022). One of the main reasons for Nike's success is their use of market segmentation. The four types of market segmentation that is used by companies is geographic, demographic, psychographic and behavioural segmentation. While Nike uses all the types of market segmentation they focus strongly on psychographic segmentation. This means that Nike group...
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Market Research

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Market Research Market research is a process that is incredibly important to all businesses trying to attract new customers. It is vital as without understanding the market, a company won't be able to effectively identify the threats and opportunities that the company faces. In this blog I will talk about why market research is so useful, the forms of research companies will conduct and types of data the company will use. What is Market Research?  Market research is all about collecting information about consumers and then analysing that data in order to benefit the company. It can help businesses make well informed decisions and focus their resources into projects with the most potential. It can help businesses decide whether there is a demand for a certain type of product, ensure optimal product placement and also improve the businesses adverts and promotions. How to perform Market Research There are several stages to market research but the first one is to identify the objective...
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Apple's Marketing Mix

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Apple's Marketing Mix It is irrefutable that Apple has grown to become one of the largest and most successful companies in the world. Whilst the technology Apple produces can be revolutionary, its marketing strategy is one of the core reasons for the company's success. In this blog I will be looking at how Apple has been able to gain a large following through its marketing strategies. Product Apple strives to create exciting and technologically advanced products. Apple, as a company, has become synonymous with being the pioneer in new technologies. For example, the iPhone X was the first mobile phone to use facial recognition as a form of security system. By offering a unique product Apple was able to attract customers due to how it offered technology no other company had at the time. In addition, Apples has designed all their products to easily link to one another to form a cohesive network. Finally, Apple focuses on creating products that are simple in design and are intuitiv...
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