Pricing is just one part of a marketing plan, but it is a big one. This is where you detail your pricing strategy with regard to the ways it aligns with the needs of you
Add some of this question to the paper uploaded.
Pricing is just one part of a marketing plan, but it is a big one. This is where you detail your pricing strategy with regard to the ways it aligns with the needs of your customers (based on their buying habits and price sensitivity) and how the margins you establish will cover operating costs.
Be sure to frame your pricing structure in relation to your competition, with a focus on direct competitors.
Explain your method or methods of setting prices. For most small businesses, having the lowest price is often not a good policy. It robs you of needed profit margin; customers may not care as much about price as you think; and large competitors can under price you anyway. Usually you will do better to have average prices and compete on quality and service. Some questions you may want to consider in this section include:
● Is your pricing competitive? Is it a competitive advantage?
● Compared to your closest direct competitor, would you be considered a bargain choice or a premium brand?
● Does your pricing strategy fit with what was revealed in your competitive analysis?
● Compare your prices with those of the competition. Are they higher, lower, the same? Why?
● How important is price as a competitive factor? Do your intended customers really make their purchase decisions mostly on price?
● What will be your customer service and credit policies?
About Promotion
Some questions you may want to consider in this section are:
● How will you get the word out to customers?
● Advertising: What media, why, and how often? Why this mix and not some other?
● Have you identified low-cost methods to get the most out of your promotional budget?
● Will you use methods other than paid advertising, such as trade shows, catalogs, dealer incentives, word of mouth (how will you stimulate it?), and network of friends or professionals?
● What image do you want to project? How do you want customers to see you?
● In addition to advertising, what plans do you have for graphic image support? This includes things like logo design, cards and letterhead, brochures, signage, and interior design (if customers come to your place of business).
● Should you have a system to identify repeat customers and then systematically contact them?
About Distribution
Some questions you may want to consider in this section include:
● Will your customers buy directly from your brick and mortar store, or will they be able to shop online as well?
● Will your products or services be available through distributors? How will you qualify distributors to determine if they are a good fit for your offerings?
● Will you use contractors to deliver your services in a licensing or franchising agreement?
● How do you sell your products or services? Retail, direct (Web, mail order, catalog), wholesale, your own sales force, agents, independent representatives, bid on contracts?
● If your business relies heavily on a sales cycle, what will be your sales plan and process?
Business Plan
Business Plan
Francisco Leon
Grantham University
BUS499 Business Policy and Strategy
Instructor: Elhan Durguti
Due Date:05/16/2023
NexGen Inc. Marketing Strategy
The products and services of NexGen Inc. include technology, software, consulting, and artificial intelligence. NexGen Inc. has several people and groups interested in the company's success. Rising demand across sectors for software-based solutions bodes well for the software development market (Rittenberg, 2022). NexGen Inc. focuses on helping small and medium-sized businesses that could benefit from specialized software. The growth of the software industry is an opportunity for the company, which has developed novel software solutions.
Microsoft, Apple, and Google, with their mass-production supply chains and well-known names, dominate the market. NexGen may want to show that it cares about its clients by charging reasonable prices (O'Riordan, 2017). NexGen's versatility, adaptability, and support are its most vital points. NexGen Inc. estimates annual sales of $5 million, based on the purchase and sale of 50,000 software products, for its first year in business. The company projects $25 million in revenue and 250,000 software licenses sold by the end of its third year.
NexGen Marketing Mix Strategy
Product Strategy
NexGen provides artificial intelligence (A.I.) solutions, technology, software, consulting services, and more. The company is committed to providing cutting-edge software solutions that enhance customer experience and streamline operations to increase ROI. NexGen also offers specialized A.I. services for a wide range of sectors.
Price and Pricing Strategy
NexGen's approach to expanding its customer base centers on keeping its product prices as low as possible. The company aims to maintain profitable operations by minimizing costs and maximizing revenue. Dynamic pricing uses supply and demand, seasonality, and competitive factors to adjust prices. As Vicente et al. (2018) described, NexGen employs a pricing technique known as "value-based pricing," in which prices are set based on how much customers value various goods. The company employs price strategies, including discounts, bundling, and promotions, to get people to buy more items and keep returning for more.
Place and Distribution Strategy
NexGen's products can be acquired by clients via a wide variety of channels thanks to the company's well-thought-out distribution strategy. The company sells its products on its website and through third-party retailers and wholesalers. To increase its reach and the quality of its offerings, NexGen routinely works with other businesses (Rittenberg, 2022). The organization can service customers worldwide because of its global supply chain and established international presence. NexGen employs data analytics to improve its distribution networks and increase product availability at crucial times and locations.
Promotion & Advertising Strategy
NexGen's advertising and promotion goals are to raise brand awareness and encourage increased product engagement. The company uses traditional and cutting-edge promotion methods to reach its target audience. These strategies include print, radio, and television ads and the Internet (Funke & Holt, 2018). NexGen also works with influential people and content producers to spread the word about its products and win over more buyers. In its advertising campaigns, the company highlights the high quality of its products and the positive feedback it receives from customers. NexGen also spends heavily on R&D so that it may provide its clients with cutting-edge products.
NexGen Product Life Cycle
The software solutions offered by NexGen are now in the expansion phase of their product lifecycle. Sales projections anticipate a tremendous increase over the next few years due to the high demand for the company's products (Statista, 2021). NexGen plans to stay ahead of the competition in the growing market for software-based solutions by focusing on innovation and providing superior customer service.
Stakeholder Management
NexGen's approach to stakeholder management centers on strengthening the company's bonds with its clientele, workforce, vendors, and investors. The organization places a premium on doing the right thing for its stakeholders, as evidenced by its commitment to ethical business practices, transparency, and accountability. NexGen places a high value on its employees and invests in training and development programs to help them grow professionally and personally (O'Riordan, 2017). The firm also monitors its suppliers extensively for signs of unethical or unsustainable behavior. NexGen has made it one of its ambitions to become carbon neutral by 2040. The company works with its shareholders and the local community to improve social and environmental conditions and advance sustainable growth.
Product Line & Product Features
NexGen provides cloud services as well as software and hardware tailored to the requirements of growing businesses. The company develops flexible, user-friendly, and data-analysis software that strongly emphasizes client satisfaction. NexGen's software products facilitate customer data analysis, operational efficiency, and enterprise bottom-line growth. Products from this firm are cutting-edge, trustworthy, and reasonably priced. Because of the company's well-established worldwide distribution network, the software may be adapted to any organization's unique requirements.
Product Differentiation & Positioning
NexGen's software solutions stand out from the crowd thanks to the company's dedication to originality, ease of use, and superior support. Small and medium-sized organizations (SMEs) will find the software more enticing because of its adaptability to their unique requirements (Vicente et al., 2018). NexGen markets itself to small and medium-sized businesses as a source of cutting-edge, dependable, and adaptable software solutions. The company's dedication to providing first-rate customer service is one factor that sets it apart from rivals. Businesses concerned with maximizing their return on investment will find NexGen's software solutions a good fit.
Economic, Demographic, and Geographic Factors that Influence Forward Consulting, LLC
NexGen's future success highly depends on the characteristics of its target market's demographic makeup. NexGen's commercial prospects are very sensitive to general economic conditions. NexGen may fare well if the economy continues to improve and consumers trust the market for innovative technology and are prepared to spend money on it (O'Riordan, 2017). Consumers may be more wary of making large purchases during a slump, and competition for a smaller customer base may increase. The price of manufacturing and raw materials could affect NexGen's pricing strategy and bottom line.
NexGen's success may depend on where the company focuses its marketing efforts. Customers' interest in and propensity to buy cutting-edge technology may be affected by demographic factors such as age, income, and level of education. One generation may be more comfortable with new technologies and willing to try out unfamiliar brands, while another may be more conservative and loyal to tried-and-true names (Rittenberg, 2022). NexGen's prospective earnings could also be impacted by the size and development rate of the target market.
For instance, NexGen may face increased competition and higher advertising expenditures if it focuses on consumers in densely populated urban areas. On the other hand, NexGen may have a more challenging time reaching potential clients in remote areas because of the lower population density. The success of NexGen may also be affected by regional factors, such as the accessibility and quality of technological infrastructure.
Rationale Assumptions
The need for eco-friendly and energy-saving items increases as people become more aware of their environmental impact. NexGen may safely predict high demand for their wares among this demographic. Second, the current market conditions, which include a thriving economy and supportive government policies, are ideal for NexGen's development and expansion (Statista, 2021). Thirdly, NexGen may anticipate a substantial competitive advantage because of its cutting-edge technology and distinctive marketing strategy. Finally, if NexGen continues to impress its customers with high-quality offerings and responsive support, the company will likely see an uptick in repeat business and advocacy from satisfied patrons.
Marketing Plan Strategy
The following is a three-year breakdown of the entity's allocated marketing funds. To begin developing its product strategy, the corporation will first research to identify the most advantageous product to acquire. The business will also outsource website upkeep to a marketing agency. To expose its wares to as many customers as possible, the corporation will advertise them on e-commerce platforms such as Shopify and Amazon (Rittenberg, 2022). Finally, content for all points in the sales funnel, such as educational materials for potential customers, will be developed. It will be shared on the business's blog and social media channels as soon as it has finished. The budget is broken down even further per month to detail the organization's anticipated monthly expenditures.
|
Marketing Plan Budget |
Year 1 |
Year 2 |
Year 3 |
|
Research |
5,000.00 |
5,000.00 |
5,000.00 |
|
Acquisition |
10,000.00 |
10,000.00 |
10,000.00 |
|
Website & Infrastructure |
2,400.00 |
2,400.00 |
2,400.00 |
|
Content Marketing |
5,000.00 |
5,000.00 |
5,000.00 |
|
Social Media Marketing |
1,200.00 |
1,200.00 |
1,200.00 |
|
Shopify Listing |
4,200.00 |
4,200.00 |
4,200.00 |
|
Amazon Listing |
5,000.00 |
5,000.00 |
5,000.00 |
|
Total |
32,800.00 |
32,800.00 |
32,800.00 |
|
Marketing Plan Budget |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
Total |
|
Research |
600 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
5,000 |
|
Acquisition |
1,200 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
10,000 |
|
Website & Infrastructure |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
2,400 |
|
Content Marketing |
600 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
5,000 |
|
Social Media Marketing |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
1,200 |
|
Shopify Listing |
350 |
350 |
350 |
350 |
350 |
350 |
350 |
350 |
350 |
350 |
350 |
350 |
4,200 |
|
Amazon Listing |
600 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
400 |
5,000 |
|
Total |
3,650 |
2,650 |
2,650 |
2,650 |
2,650 |
2,650 |
2,650 |
2,650 |
2,650 |
2,650 |
2,650 |
2,650 |
32,800 |
Organizational Success Strategies
NexGen Company Vision
NexGen is a software development firm that focuses on serving corporate clients. The company's long-term goal is to establish itself as a preeminent supplier of software solutions that help organizations save money, work more efficiently, and optimize their processes (Funke & Holt, 2018). NexGen's mission is to provide its customers with high-quality software solutions tailored to their requirements. The company's software solutions are accessible to many customers because they are intuitive, dependable, and expandable.
NexGen has been successful because it consistently anticipates and implements new technologies before its competitors. To ensure that its offerings are always at the forefront of their fields, the corporation spends extensively on R&D. NexGen's dedication to its customers is another reason for its success (Vicente et al., 2018). The organization employs experts whose sole focus is offering first-rate assistance to clients. That way, people will have a good time using NexGen's products and will be likelier to stick with the company over the long haul.
NexGen can maintain its status as a leading provider of software solutions thanks to its ability to adapt quickly to market needs. One of the keys to NexGen's success has been the company's capacity to respond to shifting market conditions. The company's business strategy is adaptable so that it can react swiftly to shifts in customer preferences or technology developments (Statista, 2021).
Relationship Marketing Strategy for Success
NexGen plans to implement multiple strategies, such as:
1. Continuous Improvement: NexGen will implement a pricing policy that aligns with industry norms. This will require monitoring the prices rivals offer and changing your offerings accordingly.
2. Competitive Pricing: By distributing its products to customers worldwide, NexGen plans to build a comprehensive distribution network (Vicente et al., 2018). To accomplish this, we will form alliances with reputable wholesalers and merchants.
3. Strong Branding and Marketing: NexGen will spend much on advertising and promotion to raise the company's profile. Creating marketing campaigns focusing on the correct people and using suitable mediums would be best.
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