Pricing and marketing objectives-Study One-Topic 4

Pricing and marketing objectives

You heard about how pricing is closely tied in with Fuji-Xerox's business marketing objectives. Reflect on how pricing affects other aspects of the marketing strategy. Try to think of one or more examples to demonstrate your thoughts on this subject.

For Fuji to be successful in their market they need to be in sync with their company plan and marketing strategies for their products. Understanding costs and what they are going to do in terms of meeting volume requirements of their plans in place. (the margins and profits from those products) An example for established products, their goals are to create a huge volume of gross profit in the market. Fuji take into account other add on costs to their products such as toners, labour required to make the products & servicing. For new products they are increasingly trying to differentiate from other competitors by lifting the value of their products such as servicing of product or general customer service. They need to be getting a profit out of new and innovative products & services quickly. Fuji have attractive pricing for small businesses such as pricing plans, leasing holidays & pricing for corporates involves making sure that their pricing is transparent for tenders.

• External factors affecting pricing such as government regulations and trade practises
• Customer acceptance of new technology- such as multi function colour printers
• Individual customers in segments- the size of opportunity from small business thru to huge corporate.
• Competitive environment-have 100-200 sales staff who also give them feed back on competitors. However they aim to lead in the market place.
• Promotional activities-month to month, quarter to quarter and long term tactical pricing strategies.
• Fuji rather than resort to price dropping prefer to focus on value adding to their products to maintain and increase their market share.