Customer Needs In Terms Of Its Price example essay topic

Understanding customer needs My research has helped me to understand customer needs. My Pest particularly helped me with this as under economic I wrote 'the British economy is expected to accelerate next Year. ' From this I found out that there is more demand for products. Also under social it said 'consumer lifestyles are getting faster. ' This tells me that there is more need for snacking, so what my customers want is simply more snacks. My questionnaire stated that 15% of people eat healthily.

Therefore there is a need for more variety of healthy snacks. My product meets customer needs in terms of its price, the actual product, its promotion and the place it will be sold. I know this because from my questionnaire and competitive audit matrix, it told me the best price would be between 30-70 p and the best places to sell my product would be in supermarkets and newsagents. My questionnaire was again helpful in providing with me evidence for the best way to advertise my snack, which was, adverts on television.

Understanding and keeping ahead of the competition My research has told me many things about my competition. From my competitive audit matrix I could see that Kellogg's have many different types of healthy snack, not just one. It also showed me that Kellogg's promote all of their snacks on Television, the prices vary from between 30-37 p and they are all sold from newsagents and supermarkets. This was very helpful when I decided on my strategy and marketing mixes. I took into account my competition when considering the components of my marketing mix. With price I based it on my competitors pricing.

I didn't want to charge too little as I would lose profit but not too expensive so people wouldn't buy it. My competitors show a tried price which has succeeded so I know this price will mean I succeed as well. For place, I made sure I sell in all the places my competitors did so wouldn't lose profit. I will do the same amount or more promotion than my competitors, so customers are more aware of my product and buy it. My next step to keep ahead of my competition would be to try to cut costs so I could lower my prices and increase market share. Communicating effectively with customers to satisfy their expectations I know my promotional strategies communicate effectively with my customers.

This is because advertising on TV, which is my biggest way of promoting my product proved to be the most popular answer in my questionnaire for what influences you to buy snacks? I wanted to find out what it was customers wanted and so to do this I asked a questionnaire. External influences My marketing strategy was affected by many external influences. As you can see from my Pest, it says 'the British economy is expected to accelerate next Year. ' This will therefore cause demand to increase, the market will grow and also employment will rise. I want this so I can easily find workers and sell more snacks.

My Pest also says 'inflation is set to remain low. ' This is good, as I want prices to increase steadily, so people will still pay for my snack and I won't lose sales. It also said 'interest rates are at their lowest levels. ' This will cause more people to borrow money with less to pay back, people will therefore have more money and be able to spend more on my products. I wouldn't launch a new product if inflation was high as people wouldn't buy my product because it would be too expensive. Co-ordinating marketing functions to achieve marketing aims All of the parts to my marketing mix help me to achieve my aims and meet my objectives.

With price, by charging a low amount it will mean people will buy it which will help me to meet my objectives of achieving a 5% market share and making a profit. With product, I satisfy the objective of developing a healthy snack. For the place I sell my product will help me to meet my making a profit a profit objective as if I sell in the best place, I will meet more of the demand, making more money. Promoting my product will attract more customers which will cause me to gain a 5% market share. Constraints on marketing activities There are many different things that I had to take into account before launching my product.

From my Pest there were many political aspects I had to obey for example my product had to meet 3 conditions. Be of merchantable quality, be fit for the purpose it was purchased for and the description of it had to be accurate. I must also make sure not to make too many products as I am working for a family business and it would be too expensive. Maintaining a relationship with other stakeholders My stakeholders are my family. Effects my business decisions will have on them is it will increase or decrease their money, depending on whether I made a good or bad decision..