Although a company's marketing plan is always subject to change because of shifting market conditions, the primary objectives are constant. Objectives must be specific, measurable, achievable, not overly aggressive and have time limits. Marketing objectives should be based upon a realistic appraisal of your company's strength and weaknesses.
Make careful decisions regarding the pricing strategy and methods best suited for your business and industry. Remember, your most important objective is to achieve maximum profitability. If your demand does not decrease with raising your price, this indicates that taking price increases might be feasible.
Your pricing policy should consider both these costs. Competitor Pricing Actions what are the implications on your business competitor reactions to your pricing decisions For example, setting the price too low may risk a price war that may not be in the best interest of anyone.
Setting the price too high may attract a large number of competitors who want to share in the profits. Establish Pricing Objectives - Pricing objectives state your overall goals you want to achieve through your pricing efforts.
Because, pricing effects most business areas including finance, accounting and production. The major pricing objectives are market share, meeting competition and profit. Maximize Profit - seeks to maximize current profit, taking into account revenue and costs.
Current profit maximization may not be the best objective, if it results in lower long-term profits Maximize Revenue - seeks to maximize current revenue with no regard to profit margins. The underlying objective often is to maximize long-term profits by increasing market share and lowering costs Maximize Quantity - seeks to maximize the number of units sold or the number of customers served in order to decrease long-term costs as predicted by the experience curve Price Equilibrium - seeks steady state pricing in order to avoid price wars and maintain a moderate but stable level of profit Determine Prices - using the information collected in the above steps, select a:The pricing strategy portion of the marketing plan involves determining how you will price your product or service; the price you charge has to be competitive but still allow you to make a reasonable profit.
Additional Considerations If you are using your business plan to attract investors, obtain financing, venture capital or grants, a professional business price company can provide plans with the necessary format and information needed to suit the strategy objective.
This Small Business Plan Sample will help you write your business plan in the correct manner. You will get to see what a business plan .
When writing a business plan for your company, you’ll often notice that business plan templates or experts suggest you include a vision statement, a mission statement, and objectives. SA Business Plans deliver customized and professional business plans for South Africa and it’s new and growing businesses.
We are a consulting firm specializing in delivering winning South African business plans to both start-ups and growing ventures. When writing a marketing plan you need to be clear about your marketing objectives and how you’re going to achieve them. A good marketing plan sets realistic and measurable objectives; includes budgets and action plans, and allocates responsibilities.