These are the important elements you should consider to create an effective market strategy.
How well your product or service is presented will determine the initial consumer acceptance or rejection. Packaging does more than protect your product from damage, it expresses a strategy. It tells the features, advantages, and benefits of the product. It creates a perceived use. Packaging influences price perception. It can determine how the product is placed. Its image can enhance or distract from the customer attitude. In service businesses, packaging includes the signing and exterior od the business which attracts the customer to the location. The same product using different packaging strategies appeals to different target markets, each with a different perception of value and each willing to pay a different exchange for its value.
2. Brand Names
Selling a brand name with recognizable trademark is a strategy aimed at building positive attitudes. The entrepreneur must decide the importance of customer confidence in brand affiliation before deciding which to sell. Brand name selling also has significant influence on price perception. A strategy must be decided as to whether the target customer will pay the added expense of buying an identifiable brand name or, if price is the more important motivator, a generic name might produce greater profits.
3. Guarantees and Warranties
By offereing guarantees or warranties to the customer, the entrepreneurs is creating positive attitudes towards their business. Customer satisfaction guarantees heighten the perception of utility satisfaction. At the same time, guarantees can influence price acceptability.
4. Price Discounting
Offering discount will change the value perception of the exchange. Brand names versus generic labeling can help determine how great the influence of this strategy will be. Marking item down or putting them ‘on sale’ can add to cash flow, however, if sales are overushed, the strategy can detract from the customer’s attitude towards the product. It’s difficult to regain original product value if the customer perceives it as a marked down imitation
Over distribution leads to greater convenience but can also alter the perception of the differential advantage to the product. Many products hold their place in the market due to the type of business where they can be found. If a specialty good is overly distributed for convenience reasons, it will lose its perception as a specialty good and thereby adversely affect the customer’s price perception.
These a some of the basic decisions to be made by entrepreneur in devising market strategy. You will have to weigh each decision carefully as to how it affects your target market. Be sure you consider your customer’s needs, perceptions, attitudes, and motivations.