Happy Birthday World Wide Web!!!!!!!

April 2013 marked the 20th anniversary of the World Wide Web.

I can't even remember what life was like with out it. Since it inception it has changed the world. Some say it started "The Online Revolution".  Currently there are approximately 2,405,518,376 Internet users in the world, that's more than a 566.4% increase since 2000! (http://dashburst.com/infographic/online-revolution-internet-changed-world/ ) As the use of the internet progresses and changes with technology, our world changes as well. Marketers have seen this change and have taken advantage.

Over the past few years as social media has become a major driving force in the world in regards to communication Marketers seized the opportunity to place their products on numerous sites.

What is new in 2013 is that Marketers are learning that it might be beneficial to stick with certain websites instead of multiple. The advantage of data collection is that it allows Marketers to focus on where their target consumers "hang outs". Knowing which social media avenues your target frequents is a better use of your budget.  Personalized marketing is the new wave to marketing.


$$$$$$$$$$$$$$ Pricing, Pricing, Pricing $$$$$$$$$$$$$$$

This is an area that could make or break you.

Picking the right pricing strategy is important. There are several pricing strategies to consider; New product, EDLP everyday low price), High/Low and Status quo. Knowing your consumer and their buying habits helps.
New product pricing focuses on getting into the market and obtaining sales and profit. This type of pricing will help the product gain recognition and will allow for consumers to try it and hopefully become loyal consumers.
EDLP- The Walmarts and Targets of the world allow for their consumers to get their product everyday for the same price. This offers convenience to their consumer.
High/Low- This strategy uses coupons and sales to allow the consumer the perception of a "deal". Unlike the EDLP pricing strategy the High/low does not offer the sale everyday.
Status Quo- A pricing strategy focused on maintaining market share. This method is set in place to stay competitive with the competition but not created to beat them.

NMC Modle- Net Marketing Contribution Model

NMC= MDxMSxSPxCDxM%-ME

The outcome that every Marketer wants to display to the CEO is one that demonstrates that the marketing process is responsible for a positive new income.
The NMC model is a way to show how the marketing has contributed to the overall net income.
Pricing objectives play a major role in this model. Market share MS) demonstrates the % of units sold compared to competitors in the market. Pricing, promoting and selling competitively play an either positive or negative role on the MS. Sales Price SP) the price of your product plays a role in the overall net contribution. If your product is priced high then it won't sell and if it is priced to low it won't sell.

Drucker and the Correct Price:

According to Drucker the Marketer should select a price that the consumer wants to spend rather than what the supplier wants to sell.
Drucker suggests to think backwards when it comes to pricing. He explains that you first should come up with the price of the product then come up with the cost to produce it. An interesting thought!!!

Pharmasim:
 As the week ends we will begin our team play. I have been spending more and more time on Pharmasim to be ready for our upcoming mission.

This week I focused on pricing. I introduced a new product as well as kept my original. Marketing reports kept stating that the Accountants thought my pricing was to low. When comparing my Allround price to competitors I thought I was consistent. I then tried to increase the price to see what would happen to my market share. It turned out that even though I increased the price I maintained if not gained some market share. I attribute this to increased promotion and advertising and a solid target market and  plan.

My new product Allright isn't doing so great. I introduced a 4 hour allergy medicine with a non  drowsy formula. I first wasn't advertising and comparing this product correctly. After changing my comparisons to a 4 hour allergy medicine without non drowsy effect I saw an increase in my market share. After advancing to the next period my new product was still at the bottom in regards to market share. I then decided to put some money behind the product and increase the price much like I did with Allround. Can't wait to see what this does for the brand and company as a whole.

This weeks prompt asked us to figure out how we would implement the pricing strategies into Pharmasim.

When looking around our main page I thought that Promotion and Advertising decisions would play a huge role in the High/Low objective. If we priced Allround relatively high then we could offer customer coupons and wholesaler discounts.

EDLP could be implemented in either the original price being low or again offering reduced prices to wholesalers.

In order to maintain Status Quo in the Pharmasim world the Pricing report as well as the Manufacturing Sales report would be able to help maintain a competitive market share. Observing what your closest competitor is doing would help you price your product close to theirs.

Introducing a new product in Pharmasim is always interesting. There are several reports that can help in pricing. Cross sectional analysis is a great way to see how your product matches up with competitors. Knowing what your product is and who is your target market will allow you to narrow in on your competitor is the market. Once you figure out your competition you can figure out how to beat them.

Always remembering to keep Druckers perfect price in your thoughts and pricing strategy.