A Handbook of Management Techniques by Michael Armstrong

By Michael Armstrong

This advisor to trendy concepts in all fields of administration is a perfect better half for pro managers, in addition to an important reference publication for company and administration scholars. It contains over a hundred systematic and analytical tools used to help in decision-making and to enhance potency and effectiveness.

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PROCESS The process of target marketing (note that the terms ‘target marketing’ and ‘market targeting’ are interchangeable) is the manipulation of the marketing mix such that a distinctive product is made available for each chosen market segment. It involves formulating market coverage policies that determine the segments of the market that present the best opportunities. When the segmentation process has taken place, each identified segment must be assessed in order to decide whether or not it is worth while serving as a profitable target market with its own distinctive marketing mix.

Influencers – those who might influence the product specification or who can affect the buying decision in other ways (for example, accountants might influence purchasing budgets). ᔢ Deciders – people with authority to make the purchasing decision. In most cases this will be the buyer, but high-value items might involve a team decision. ᔢ Gatekeepers – personnel who control the flow of information to and from buyers (for example, technical staff, secretarial staff who may arrange appointments for buyers, junior purchasing personnel with whom potential suppliers might have to liaise prior to contacting other members of the decision-making unit (DMU)).

Discount pricing Discount pricing is a technique that sets artificially high prices but then offers large discounts to attract customers. It is advisable not to offer discounts on a permanent basis. Flexibility is important. Considerations affecting pricing strategy Product costs set a floor to the price but are not the only consideration. A ceiling may be set by the unique features that the company offers, although this level will also be influenced by the company’s strength and prestige in the marketplace.

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