Using Marketing Channels and Price to Create Value for Customers - Essay Example

Marketing Marketing When making sales of any cosmetic product, it is always critical to have two marketing channels to reach out to a wider audience. Most people ignore the impact this has on their products, but it is one of the best ways of reaching out to a wider clientele and making better changes to the systems already in place. For this product, the direct and indirect marketing strategies are used. The first is directly to the customer, while the other uses the distributors to get in touch with the wholesalers before they reach a retailer who provides it to the client (Kotler, Keller, & Burton, 2009).

This broadens the targeted customer base, and creates a new understanding of what the markets are all about. It opens up new avenues that provide the product with ideal marketing properties, hence reaching more clients within the shortest time possible. This also allows more clients to be aware of the products being sold, and have the right information (Kerin, 2012). Selective distribution is used to reach out to a majority of the clients (“Week 6 reading”). The targeting process allows the consumer to attain the level of growth required in sales and revenue.

The work of the distributor is to understand the market and rally all the supply chains under its control to take up the product to the wholesaler (Hochbaum, 2011). This marketing gimmick entices the wholesaler to stock the product. The wholesaler takes up the product and convinces the retailers that it is a good way of meeting the changing client’s demands. It will be a boost to the retailer’s sales and revenue collection. The retailer recommends the products and ensures the clients come back for more.

This makes it easy to reach out to more clients while at the same time providing new requirements to satisfy the needs of these clients (Kerin, 2012). The pricing strategies in place aim at maximizing the sales and the market share. By maximizing profits, it is possible to create efficient systems and effectively capture the required clientele bases. It opens up new methods of doing business while still earning the forecasted profits. By working on maximizing the market share, the company earns a better share of the clientele bases and captures more markets (Hochbaum, 2011).

This allows more people to view the product and create a better way of involving all the people needed to attain these goals. The main strategy here is to use the odd-even pricing strategy (“Week 6 reading”). This approach allows clients to come and acquire products in bulk because of the benefits noted. The impact is quite huge especially when people realize that the products in place are of high quality. This presents better understanding of what the markets need and creates a pricing strategy that benefits both the client and the company (Kerin, 2012).

Product mix pricing is a good recommendation because of the benefits expected from making such introductions to the cosmetic industry (“Week 6 reading”). Any of the products requires others to be complete and creating such a mix could provide both parties a huge advantage (Kerin, 2012). This could also preempt a partnership with other companies to produce these products and share the profits. Such an idea would boost the products presentation compared to the different mechanisms that could benefit the company.

Clients want convenience, and product mix pricing is a good way of making this work. ReferencesHochbaum, D. S. (2011). Rating customers according to their promptness to adopt new products. Operations Research 59 (5), 1171–1183. Kerin, R. A. (2012). Marketing: The core. McGaw-Hill Ryerson.Kotler, P., Keller, K. L., & Burton, S. (2009). Marketing management. Melbourne: Pearson Education Australia.Week 6, "Using Marketing Channels and Price to Create Value for Customers" from Principles of Marketing, (2015).

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