Price and pricing are differentiated by a thin boundary that separates their definitions. Price can be termed as the tag or amount of money that is placed on a product. A good example can be seen in the case of a phone. The recent Apple iPhone comes at the cost of $1000. In the given example, $1000 is the price. When it comes to pricing, it is a process that is used to reach the price (Dr. Fanning, n.d). Before the company releases products to the customers, they must reach the customers at a specific price. The process of determining the exact price is known as pricing.
There are three essential marketing concepts, and each of them is affected by price and pricing. The production concept is affected by the pricing and price of the product because if the price of the product is high, the sales might reduce and that means that production has to be decreased (Dr. Fanning, n.d). The selling concept is also affected by the pricing process and also by the prices of the products because when the products are priced at a high price, the buyers might reduce and that means that the company will have a challenge in selling its products to the customers (Dr. Fanning, n.d). The marketing concept is affected by the process of pricing because when the products are priced at a high price, the marketing initiative might be faced with a challenge and this is because the intended customers might pay less attention to the marketing teams.
The marketing concept emphasizes the need for an organization to make sure that it meets the needs of the customer while preparing products and services to reach the markets. Therefore, the marketer comes in handy to convey this essential message of the consideration of the company in meeting the needs of the customers (Dr. Fanning, n.d). The marketers are able to influence the customers by touching on the aspects that are relevant to the interests of the customers. During the marketing campaign, the essential way for the marketers to make sure that the targeted audience is convinced is by touching on some of the values that have been added to the product and are essential to the needs of the customers. For example, if a marketer is marketing natural products, he should insist on what the company has done to make sure that the products are chemical free.
A salesperson plays a significant role in convincing the customers to buy, and it is for this reason that he or she should dwell on the characteristics and specifications of the products that meet the customer's needs. A buyer is not only attracted to fair or low prices, but he or she is attracted by the value (Dr. Fanning, n.d). Therefore, the salesperson can influence the decision of the customer by touching on the extra miles that the organization has gone to make sure that the value of the product is enhanced thus meeting the needs of the customers. A customer is likely to be moved by a valuable product, and therefore the persuasion of the salesperson might go a long way to make sure that the customer purchases the product.
The best way for Sam to influence the product component is by employing one of the marketing strategies that he has been thinking of. Two options have been available for Sam to use and the first is the reduction of prices and the second is the concentration of value during the marketing campaign (Dr. Fanning, n.d). According to the case study, it is evident that the competitors can beat Sam if he tries to reduce the price of the products and that would come with other long-term effects. Therefore, for some to influence the product components, he has to employ the strategy of emphasizing the aspect of quality, and this would come along with different steps and measures. The first step would be to invest in equipping the marketing team with skills that would enable them to sell the value of the product to the customers.
It is imperative to note that the approach that an organization takes when marketing a product to the customer has an influence on how the customers accept the product and embrace it. At the same time, the knowledge that is possessed by the marketing team is critical when it comes to marketing the product (Dr. Fanning, n.d). it is for this reason that Sam needs to make sure that the marketing team has been trained on how to convince the customers about the value of the product and not only the price. The second step would be to overreach his marketing boundaries. Reaching many customers is also a strategy that can help to win more customers thus increasing the sales and profits.
Fundamental to marketing is essential for any businesses, and it irrefutably impacts a business positively especially when it comes to sales and profits. An organization that knows the essentials of marketing is in the best position to increase its sales and profits. The reason for stating so is associated with the psychology of the customers (Dr. Fanning, n.d). In marketing, an organization looks for ways to convince the customers of the essence to use its products and services. Marketing has proved to have a significant effect in persuading the customers to purchase a specific product or service. In line with the case study, the essentiality of the fundamental to marketing is evident, and this is because of the contemplations of Sam.
The only strategy that Sam thinks of in case to reach more customers and beat the competitors is marketing. The only difference is that he considers some marketing strategies over others. In this respect, it is evident that the only way Sam can increase profits is by having a deeper understanding of marketing and employing the most effective marketing tools and techniques. In the case of the e-book, it is evident that it talks of marketing as the tool that attracts customers to the products of a company (Dr. Fanning, n.d). Marketing is the vice that is used to communicate to the customers of the efforts of the company to make sure that the needs of the customers are factored in the products or services. It is therefore evident that for a company to increase its sales and profits, it has to understand and employ the most effective marketing strategies.
Dr. Fanning, S. (n.d). The Marketing Concept [e-book]. Retrieved from www.themarketingconcept.com