Diploma in Business Management Production Supplies

Question: Discuss about theDiploma in Business Managementfor Production Supplies. Answer: Examples of Pricing Variables There are number variable costs that are associated with the businesses such as cost of direct materials, production supplies, piece rate labor, billable staff wages, commission, credit card fees, freight out and others (Kaplan and Atkinson 2015). Need for Pricing Variables It is important to review the pricing policy of an organization. It helps the company to determine the marketing strategy, formulate marketing mix decisions, and estimate the demand curve, calculation of fixed as well as variable costs, understanding the environmental factors and others (Kaplan and Atkinson 2015). It is an important part of the financial planning of the organization. Identification of Customer Needs It is important for the organizations to understand the needs as well as preferences of the customers. This would make the company to formulate products as well as services which would meet its requirements. There are various ways which can help the company determine the needs as well as requirements of the customer. The company must try to think from the customer point of view and observe the preferences of the customers. A data should be used for the purpose of understanding customer needs such as customer relationship management (CRM) (Neslin 2014). It provides customer analytics regarding their needs. A market research helps the company to understand the needs of customers. Effect of Customer Behavior on the Marketing Mix There are several factors that influence the consumer buying behavior such as cultural, social, psychological and personal. The four elements of marketing such as product, price, place and the promotion are being affected by the behavior of the customers. The consumer behavior determines the quality of the products and the related product attributes. The income of the customers determines the price of the products of the brand (Anselmsson et al. 2014). The accessibility of the customers determines the distribution pattern of the customers. The promotion tool involves the selection of various tools which should be based on the level of exposure of the customers. Statistical Tools There are various statistical tools that are utilized by the company to gather market intelligence data such as click stream data, corporate websites, data mining, data warehousing, dashboards, search engines, trade shows, suppliers and others (Segarra et al. 2016). Use of Statistical Data The statistical data is used by the company to assess the consumer attitude as well as consumer behavior. The channels of distribution can be identified based on type, availability and the effectiveness of the medium. The company would be able to decide the technological advancements that can be utilized and the concerned trade partners. The company can also help to identify the location of the target audience and specific geographic locations that are lucrative for the company. References Anselmsson, J., Vestman Bondesson, N. and Johansson, U., 2014. Brand image and customers' willingness to pay a price premium for food brands.Journal of Product Brand Management,23(2), pp.90-102. Kaplan, R.S. and Atkinson, A.A., 2015.Advanced management accounting. PHI Learning. Neslin, S.A., 2014. Customer Relationship Management (CRM). InThe History of Marketing Science(pp. 289-317). Segarra, L.L., Almalki, H., Elabd, J., Gonzalez, J., Marczewski, M., Alrasheed, M. and Rabelo, L., 2016. A Framework for Boosting Revenue Incorporating Big Data.Journal of Innovation Management,4(1), pp.39-68.