Solid Profitability Boosting Techniques

Solid_Profitability_Boosting_Techniques

Let us begin by defining profitability earned in very simple terms. The price of your product less the cost of producing your product gives you the gross profit you will earn per unit of product sold. If we multiply the profit per unit by the number of units sold, we get total gross profit. This implies that there are three distinct ways of boosting your revenue i.e. by increasing the price of your product, reducing the cost of your product or increasing the number of units sold.

Care needs to be taken when altering any of these variables to ensure optimization. For example, when increasing prices, if demand falls more than proportionately in comparison to the price increase, then overall revenue declines. Similarly a decline in cost should not be accompanied by a quality decline otherwise sales and brand equity will suffer. Your task then is to find the right mix of price, cost and quantity sold to optimize gross profits. Some very solid, tried and tested ways of optimizing gross profts are given below. Continue reading …

Effective Market Segmentation

Effective_Market_Segmentation

Market Segmentation is the process of dividing the market into different groups based on demographic, geographic and behavioral similarities. This assumes that each segment shares the same characteristics and is distinctly different from the other segments.

The purpose of market segmentation is to divide the market into easily identifiable subsets so that you can prioritize your marketing effort. Effective market segmentation is at the heart of your marketing strategy and allows you to beat the competition by providing tailor-made products, services or solutions. Rather than spending valuable marketing dollars on general messages it is better to identify your ideal target customer and then divert resources to fulfilling this customer’s needs. Continue reading …

Ten Tips for International Marketing Success

Ten_Tips_for_International_Marketing_Success

Every business owner knows that the best way to close a deal is through a personalized face-to-face meeting with the prospective customer. However, if you are planning to expand your market internationally then a face-to-face meeting with every client may be challenging.  So what can you do to capture your global market and ensure long-term success in the international arena? Continue reading …