Pricing

This is a good subject for me. My father and I used to have our own auto glass replacement business.
We based our pricing on costs of goods and perishables needed to provide the service such as the glass and materials and tools needed, along with the gas for our trucks as we were a completely mobile business. We did great for about 9 years without being properly funded or having a business model or plan. We targeted the market we already serviced for a company we worked for years before. The problem came when the economy collapsed and customers did not want to pay for something they didn't really "need". Our biggest selling point was our incredible service, but sometimes there were issues with our prices. We based our prices on what we could do the job for and just barely make a profit to survive. I am curious how a new company with a new product or service decides on what is a "good" or "fair" price.

Branding is strong

Branding as a marketing tool can be so strong that we as consumers often dont even think about our purchases. We do them strictly on instinct and vision alone. I for one am a golfer and the brand I love is Callaway. If I see that logo I will buy it if it is something I need or want and will not even consider another brand. Having a strong brand maybe the best marketing tool there is in my opinion.

Word of mouth

I was just thinking today at work the power or word of mouth marketing.
I am guilty myself of deciding to try or not to try a certain restaurant or product just by simply forming an opinion based on what others around me say.
If I get mixed emotions from a group of people I will most likely try it for myself but if they all say negative things I will opt not to try a place or product all together.
As a business owner a person should take every sale and or service provided as if that customer was the most important person alive to keep word of mouth marketing positive.

Targeting and segmentation

I decided to make this weeks blog about the company I work for and how it found a seemingly untapped segment of a somewhat crowded market. I will not name the company or the market, but I will say that instead of supplying brick and mortar stores with product in hopes that it sells, my company ventured out and went straight to small and large businesses that could use our product. It basically cut out the middle man and the hassles of going to the brick and mortar stores to acquire the product. Instead we ship direct to the customer. I used to think it was dumb, but the more I learn in my business classes I see it is quite brilliant and has proved to be a thriving choice.