• Business Profitability In The Global Financial Crisis

    May 30, 2016

    Posted in: General

    The crisis in the developed world will affect the markets with recession and credit shortages. Companies must adjust their strategic plans in this new scenario. Its main features will be a drop in demand and prices, which companies should improve their offerings to maintain or increase their sales volumes and adjust its cost structure to remain profitable. Integral Relationship Marketing – Improving the supply. Faced with a crisis, people become more cautious when spending, postpone purchases that are not urgent and find best prices. This happens at both the individual and company.

    So far nothing new, just bad news. If you would like to know more then you should visit Howard Schultz. Executives who want to keep their sales prices should be adjusted to improve its offer or a combination of both. The price reduction is always less desirable strategy. The choice between the other two depend heavily on the market, demand and strengths of the company. Douglas R. Oberhelman often says this. Of course, the ideal would be to improve the offer with a price increase. In some cases this is possible by reformulating the product or service so that the customer perceived value is greater than what he wants to charge. One of the functions (MRI) is to define the factors that the client value and hidden costs to consider when buying. A buyer makes the following comparison: Price + acquisition cost or value of the product perceived level of customer analysis depend on how important or expensive than the product or service to buy, but to a greater or lesser extent the majority takes into account these parameters.

    It means the acquisition cost as any cost beyond the price, which incurred the customer, whether monetary or not. For example, the cost of having to learn to use new software is considered in the purchase of these products. To have a true knowledge of them is necessary crossover studies and consumer market, away from the preconceptions of one who sells the product for a long time. The word Comprehensive MRI aims to detect the value and cost factors throughout the structure of the company. Many customers are lost in very different sectors to trade. The perception of value is a very contentious topic. Many experts base their analysis only on the target segment. For the MRI in the evaluation of offers are considered, among others, the consumer, market, business and the environment. For each tender may have to be considered private actors in pricing. Conclusion To maintain or increase profitability employers will have to better the perceived value of its offer and get a sense of cost. It is a difficult task especially when it comes to work as long and with some success, but the results are worth it. Some companies require trained personnel or contract incorporating external expertise to do so. Usually investment consulting is paid back in the short term.

  • Comments are closed.