Important Factors for Competition

Important Factors for Competition

Important factor for understanding the current & future competition in the market are customer switching ability, competitor ability to exit, industry set up cost, entry barriers, growth opportunities, and long term demand for the product.

1.    Customer Switching  Ability

First important factor for understanding the competition in the market is customer ability to switch from one product to other.  For example if a customer can easily switch the mobile network, then the level of competition would be very high in the telecommunication sector.

2.    Competitor Exit ability

Second factor for determining the market competition understands the competitor ability to exit the market. In this regard company needs to study the exist barrier of a particular industry.

3.    Industry Set up Cost

This is one of the important factors for determining the competition in the market. If industry set up cost is very high, then competition will be limited. For example there is little competition for airline producing industry.

4.    Entry barriers

Entry requirement of new industry are known entry barriers in the market. There are variety of entry barrier varies industry to industry. Some entry barriers are low profit, already saturated market, high investment requirement, skilled labour, and a leading brand.

5.    Growth Opportunity in the Market

Growth opportunity will attract new entry in the market. Therefore tough competition is expected in the industry, which has high opportunity of growth. Competitor would love to capture some share of the market.

6.    Long term Demand

Industry with long term demand (demand is not going to finish) is expected to have competition all the time, for example clothing and shoe industry. There will always be a monopolistic competition for essential goods.

Advantages of Pull Marketing Technique

Advantages of Pull Marketing Technique

In pull technique customer awareness about the product or demand is created by different methods. This strategy is customer focused in nature .Advantages of pull technique is brand image building, customer relation building, and wining customer loyalty.

1.    Brand Image Building

Pull technique is useful way to build brand image of the company. This image building can be effectively utilized by the management in future product launch and many other ways.

2.    Customer Relation Building

Pull technique is an effective way of building direct customer relationship. Customer is most important factor in marketing, and pull strategy focuses this important factor. Customer awareness & generic customer demand is targeted in pull technique by the company.

3.    Customer Loyalty

Pull techniques focuses on customer loyalty, which is very important for current product marketing and such loyalty may also be effectively used by the company for future products launch & promotions.

4.    High Price Possible

Pull marketing technique company may charge high price, because high customer demand is raised in pull marketing and customer is ready to pay high price for the product due to awareness created for the product or company.

5.    Limited profit Sharing

In pull marketing the company keeps the major portion of profit with itself, and only limited profit is offered to distributor. It means that profitability of company improves with pull strategy.

Important Factors for Packaging

Important Factors for Packaging

Important factor for packaging are product protection, easy carriage, attractive & Eye catching, customer Carriage convenience, brand image reflection, and display convenience.

1.    Product Protection

Product protection is one of the main factor or consideration for packaging. Companies should design the package to protect product from physical damage & from environmental negative effects.

2.    Easy Carriage

Packaging should facilitate the easy carriage of product. The packaging must ensure safe & convenient carriage of product from the warehouse to the shops. Utilization of carrying vehicle space is important consideration in this regard.

3.    Attractive & Eye Catching

Packaging should be attractive & eye catching for the customer. It is noticed that packaging play important role to attract customer attention toward the product. Attractive packaging is important factor for sales boost.

4.    Customer Carriage Convenience

Customer must be able to carry the product easily to their homes. Customer may refuse to buy a product, which is difficult to handle & carry. In simplest term, it can be said, that product packaging should be customer friendly.

5.    Brand Image Reflection

Brand image should be reflected in the packaging. Many people buy the product on the bases of brand name; therefore brand name should be appropriately reflected in product packaging.

6.    Support Display

Design should be easily displayable by the shopkeeper and should occupy reasonable space. Effective display is an important factor of sales promotions.

7.    Legal Formalities

Packaging should also comply with the legal formalities of a country. Regulator may issue different guideline for packaging of product (mainly related to Heath Safety issues).