AirAsia with lower costs can set lower prices that result in greatest sales.
Each decision you make at your business might address a specific problem or need in a department, but all decisions can affect the main goal of any company -- profitability.
When managers make decisions in a vacuum, it can lead to interdepartmental complications. Understanding the basic factors you should consider when making any decision helps you and your staff make better plans or react to individual situations.
Return on Investment One of the obvious factors that influences business decisions is the effect on profitability.
You can measure this in a number of ways, but calculating a return on investment is often the simplest. The return on an investment is the amount of benefit you gain or lose by undertaking an activity. However, the staff time you spend managing the direct mail program might cost you much more than placing an ad, making your return on the ad better.
Calculating your return for each opportunity would let you know what options offer a better investment. Brand Impact Many decisions you make, from where you advertise and sell to what prices you charge and charities you sponsor, have an impact on your image.
Consider what your customers will think when you make decisions the public can see.
Effect on Resources When you calculate your profit benefit from a possible decision, also consider the overall effect on your sales, human resources, accounting, production and information technology staff. If making a particular product takes your staff away from other activities, you might lose other profit opportunities.
If you overburden your staff, you might start losing key employees. In addition to looking at your dollar costs for making and selling a product, review the impact it will have on your operations. Opportunity Cost When you make one choice, you lose the opportunity to make another.
For example, if you decide to buy radio ads, you might not have the budget to buy TV spots. If you buy new machinery that improves your production, you might not be able to give raises or bonuses this year.
Asking your sales staff to develop new customers might result in them providing less customer service to existing customers.SWOT analysis focuses on the internal factors which are the company’s strengths and weaknesses as well as the external factors which are the opportunities and threats which are gained from situational analysis, which focuses on summarizing all the pertinent information acquired about the key three environments of internal, customer, and external (Ferrell & Hartline, , p.
External Factors That Effect Pricing Decision Of Aldi Marketing Essay. Print Reference this. So the company has to come up with pricing strategy and consider other factors which affect the kaja-net.com plays an important decision maker for a customer to purchase the things.
Price should give the value of the money the customer is paying. Aldi Marketing Essay example; Aldi Marketing Essay example. Words Sep 2nd, 11 Pages. What distinguishes Aldi from its competitors is its competitive pricing strategy without reducing the quality of its products.
to examine both internal and external factors that drive Aldi to the current successful position in the UK highly. External factors that affect pricing decision include the nature of the market and demand, competition. The market and demand in oligopolistic market, pricing in oligopolistic competition, the market consists of a few sellers who are highly sensitive to each other’s pricing and marketing strategy.
These external and internal factors group together to form a marketing environment in which the business operates. What is the Marketing Environment?
Marketing Environment is the combination of external and internal factors and forces which affect the company’s ability . External factors that affect pricing decision of ALDI: Customers and consumers: ALDI targets mainly the sector of people whose main concern is low price and ALDI follows the strategy offers the product at the lowest price possible.