This looks at an organization, which has launched a new product into the market. The product is considered to be quite innovative and a plus to the users who adopt it. As an organization they have done their research in the market to know which people would purchase the product and their financial capability. The ethical dilemma in this case study is that the target for sales of the product will not be reached because of funding issues of the schools. This means the sales representative will not reach the target set for her and she will not get the reward, which she thinks she deserves for reaching the target. The dilemma comes in where, what can she do to intervene in the situation, in order to achieve the targeted sales and schools benefit from the product. We critical look at the options available and their ethical implications which each of them.
The first option is if she donates the shortfall to the school with the aim of them being able to purchase the product and she gets her bonus. This solution seems ideally correct since there are no rules being broken here in terms of the business but ethical it will be wrong since her donation will be considered a form of bribery to the school for them to buy the product. When you give a donation you should not be in a position to gain from that in any way. This is considered to be the right meaning of a donation. This means that this option should not be undertaken.
The second option is that she accepts she has not met the target and moves on to the nest quarter target. This is considered to be giving up on the client. The client’s needs always come first as a marketer and we should not give up on them even if they do not have the funds. The fact that this option gives up on the client means it will be a wrong decision to make as a marketer and should not be undertaken.
The third option is where she is to approach the school and look into ways of them raising the money to purchase the product. This option is the best according to me since it is looking at a solution that can be maintained in the long run and the savings will not only be used to purchase the product but also do other things in the school as well. This option looks at the marketers initiative of making the school buy the product. There are also ways in which the organization can make the product accessible to other schools in the future by looking at their pricing strategies and customer analysis should be done critically in the organization.
A price strategy is the way you denote the value of a product. This should be able to cater for cost of production, cost of marketing and the most important of all the price that will attract the consumers to purchase the product. This is considered to be a very delicate thing that companies tend to fight over literally. The type of product is known to have a very big impact on the pricing strategy. The case study is dealing with high end mobile handsets.
This brings out two variables the products become obsolete very fast in the market and the needs of the user seem to change very fast. This implies that these products need to be price in a price that will ensure it remains in the shelf and goes fast at the same time. This means the pricing strategy used must incorporate an essence of speed of sales to ensure the products go very fast before they become obsolete.
This is considered to be the battle that all mobile companies are fighting each day. The products are always re-engineered and sold as a higher version of the previous one. This means the pricing strategy at the launch of the product must incorporate this concept since it will be out phased very soon by either the competitor or the same company. Samples are elaborated below which the company can employ.
The carrot and stick pricing technique is where the price of a more expensive product is placed with a cheaper product in the same advertisement. This is a technique used to show people that prices will always differ but the best product is the cheapest. This is a to ensure all the products that the company is selling will always be sold. The lower version of the products will always be sold.
The value added experience strategy is where the company shows the consumer that the new price is worth the product and its features. It is considered to be the best way to build customer confidence on the product. This is a good way to build customer loyalty at any one time. Companies have been known to be using strategy when unveiling upgrades of the high ends products.
There is the house advantage pricing technique this is where the product is price by the manufacturer and he advertises the product. This provides an avenue where the retailer is also set their own price, which they are allowed to sell their products. This creates the opportunity for the retailer to sell the product at a competitive price and offer a discount to the other consumers. This method is known to benefit everyone in the chain and encourage sales of the product.
The above mentioned pricing strategies of apple has made their high end products be sold in large numbers among other factors to be considered. The essence of ta pricing techniques should be to include all the factors and ensure the price is right in an aim to encourage sales of the product to the consumers. The consumers are always in the pricing setting chain because once you create a product and price it rice it will have high sales.
The company as it tries to tap into this new market with its new high end product it should go with a strategy that is going to ensure the sales are off the charts and the consumer rating of the product is high. This brings out the strategy of value added pricing technique. This creates a sense of value to the consumer since they look at the product as a high value asset which they must acquire. This is what the pricing strategy that the company aims at employing should always have in mind. This pricing technique will ensure they enter the market easier since their already competitors in the market who they have to consider how they will react when they hear a new competitor has entered the market.
They should also use promotional pricing technique since they are penetrating the market for the first time. This strategy will also help them to get a good name in the market, which they are entering. Consumers tend to go for product, which they see they will gain more than the price they are paying for hence the use of promotional techniques.
The company should choose some of the pricing strategies mentioned with the aim of being in a position to be able to gain an advantage in the market and still not fall in the same predicament.
Customer satisfaction is what drives business this company should invest in this to be able to build a solid customer base . When a customer is satisfied with a product this means the reason for making the product has been fulfilled. The way to measure, whether a customer is satisfied with the product is a matter of great debate in the business industry. There is the universal way that is a rebuy by the customer. People have often been able to try and come up with ways of try create a full proof strategy to measure customer satisfaction.
The work that goes into every product with the aim of ensuring customer satisfaction is much. Before a product is made the customer is analyzed and a need is located. This need is then taken up by the business man with the aim of satisfying it. A product is made and the customer needs is partially met because availing the product is going halfway when the customer uses the product and he is satisfied the other bit is done.
There has been various practices that have been introduced in analyzing customer satisfaction. This is very important since it analyses whether the marketing campaign that was done was effective or not. They are elucidated below;
- The 360 degrees measurement – This type of measurement look at three points to measure whether the product did its work perfects. They are; Quality of the product, Reliability of the product and Need satisfaction meter of the customer. When a client is asked about any product using these three points by the consumer, they can be able to ascertain whether the product is satisfying the needs of the customers or not.
- The Loyalty measure – This is where you test the customer by asking th customer the following question; What is your view of the brand; How likely are you to do a repurchase and would you recommend it to someone else. This looks at the critical aspect of whether the customer liked the product or not.
- The affective and cognitive measurement – This looks at the various aspects of the product according to the clients views. This looks at critically whether the client liked the product and whether it satisfied his needs. People often look at it in various ways as they seem to interested in the judgment the client made about the product. This is an important and vital part in the aspect of customer satisfaction analysis.
Companies should take time to interact with the consumer as they do the collaboration process as he or she buys the product in a personal and not intruding way. They do it yes but the approach used should be modified to ensure the clients use their products and are satisfied with them. This interaction and the client satisfaction form and meter should be analyzed weekly and the results implement in the next week. Rapid implementation of the clients problem solution means the clients
The sales representative should adopt the third option available to her and with this the ethical thresh hold will not be crossed in any ways since she will be helping the school in two ways which are sourcing for funds for this project and future projects and ensures the school gets this product.
The second solution is for the company to employ pricing strategies that will be able to be managed by the school with and without budget cuts as elaborated below. The second option is them doing a critical customer analysis to be able to come with a solution that will suite both the company and the clients .
An organization should always ensure the needs of the clients are always met and this will come with various challenges. These challenges should be met with contingency plans already in place as part of the proactive way of dealing with the clients and employees as well. This is not an easy task which most organizations seem not to have as seen in this ethical dilemma. The employees should be taught how to deal with challenges and ensure the ethical lines are not crossed in any way. Ethical line are not easy to draw and it takes the contingency plans to avert the crisis suchas these since they prepare the employees for such scenarios.
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