As a marketing manager of a commercial cleaning service oriented business. Many of the marketing related aspects are revealed. To set the price of a product, it is necessary to consider that the underlying costs should be covered, profit margin the organization is pursuing and the competitive price the target market can pay. Thus, an Activity Based Costing (ABC) is used to price the product. The cost associated with the production is calculated and the profit margin is added to form a competitive pricing .
For an effective sales force, only the best talent is hired with lucrative pay packages and given financial and non-financial motivation to increase its effectiveness. A sales force program was also initiated to align sales strategy to corporate objectives. To forecast sales, the historical data and information on consumer market is gathered to forecast the buying behavior. Yearly forecasts are broken down into monthly sales forecasts. The product is compared to the offerings by our competitors after a SWOT analysis is performed to form an effective sales strategy and tactics . For the payment of accounts payable, funds are paid on the last day of the credit period. Similarly, to collect our receivables, consumers of our services are given one month time for repayment.
References
Edinger, S. (2013, March 06). Four Principles For Great Sales Forecasts. Forbes Magazine. Retrieved from http://www.forbes.com/sites/scottedinger/2013/06/03/four-principles-for-great-sales-forecasts/
Kurtz, R. (2006, April 18). Setting Your Product's Price. Businessweek - Business News. Retrieved from http://www.businessweek.com/smallbiz/tips/archives/2006/04/setting_your_products_price.html
Richards, L. (n.d). Examples of Product Development Strategy. Houston Chronicle. Retrieved from http://smallbusiness.chron.com/examples-product-development-strategy-3219.html
