Direct Selling Investment Valuation

Question: Describe about the Direct Selling for Investment Valuation. Answer: Part A: Internal and External Factors affecting the Pricing Strategy Internal Factors: Return on investments- the marketing objectives need to focus on the percentage return on the expenditures associated with the products. Cash Flow- The sales price will be structured at a rate that will ensure the return of the production charges (Danziger, Hadar and Morwitz 2014). Market Share- The pricing decision is important for ensuring the new market retaining purposes. External Factors: Customers Expectations: The expectation of the customers and the channel distributors is the major obstacle for setting the price of the product. Elasticity of the Demands: Understanding the changes of the prices as per the market preferences. Direct Competitor Pricing- The direct competition prices of the rivalries affect the pricing structure more significantly. Techniques for determining the prices There are two types of techniques that can be used for setting the price. First, the effective product packaging system would be beneficial for making the products attractive to the customers (Li, Xu and Li 2013). On the other hand, the unique value added features of the products are effective enough to attract the customers. It will suggest the competition with the other rivalries in the market. Short Term Pricing Strategy One of the beneficial short time pricing strategies is the pricing penetration strategy. This strategy refers that the price of the products will be set lower at the initial stage (Phillips and Gully 2015). It will be helpful in attracting the customers with lower prices of the products. Once the product demands get higher, the reasonable price will be implemented. Payment Term Option If concentrated on the payment term option, it is noted that the early payment discounts would be much beneficial. The early payment discounts allows the customers to pay on time, which creates the less impact on the profits of thin-margin products. For instance, the customer can receive the 60 days credit by considering 5% of discount amount. It is a fruitful payment option to attract more customers towards the products. Achieving the selling purpose There should be the media channel, which will connect the customers with the customer care executives (Damodaran 2012). After purchasing the products, the customers need to provide their feedback or the customer care executives need to communicate with the customers to understand whether they are satisfied or not. The after sale service will determine the re-purchasing behaviour of the customers. Responses to the Queries Following up the customers responses is essential to derive the idea about their concerns. Hence, the customer care executives send the mail to the customers for replying to their responses. The customer care executives need to encourage the customers to present their concerns regarding any of the issues that they have been facing while banking with them. In fact, if any of the customers requires discussing over any critical matter, the face-to-face meeting can be arranged accordingly. Accessibility of the Customers a) The customers can access the accurate information by communicating with the customer case executives over the phone call. In case of any other specific queries or confidential matter, the face-to-face dealing will also be beneficial for providing the accurate information to the customers (Ragland, Widmier and Brouthers 2015). b) The online transaction pages are available in the internet. However, in order to maintain the higher security, the direct transaction or card transaction will also be available for the customers. Assessment 2: Part B Skills required for the staffs The efficient and clear communication with the customers is necessary for making the customers aware of the product specifications. Therefore, the staffs need to improve the interpersonal communication skills for communicating with the customers. It helps in building the effective relationship with the customers and generates the sense of reliability. Customer feedback The continuous feedbacks and following up the customers would be helpful for understanding whether they are happy with the products or services. The quality of the products will be determined while setting the pricing strategy. Recognising such aspects would be much beneficial for determining the fair dealings with the customers. Assistance of the Staffs The customer executives can provide the feedback form to the customers where the customers will provide their responses regarding their experiences of using the products. This form is needed to be dropped in the drop boxes set for gathering the feedbacks. Moreover, the customers can provide their feedbacks to the websites of the respective company. If the customers need to discuss any of the critical matter, the service executives will call them up and discuss the matter over the phone call. In case of extreme consequences, the customer care manager may arrange the face-to-face conversation meeting with the customers. References Damodaran, A., 2012.Investment valuation: Tools and techniques for determining the value of any asset(Vol. 666). John Wiley Sons. Danziger, S., Hadar, L. and Morwitz, V.G., 2014. Retailer pricing strategy and consumer choice under price uncertainty.Journal of Consumer Research,41(3), pp.761-774. Ellickson, P.B., Misra, S. and Nair, H.S., 2012. Repositioning dynamics and pricing strategy.Journal of Marketing Research,49(6), pp.750-772. Li, Y., Xu, L. and Li, D., 2013. Examining relationships between the return policy, product quality, and pricing strategy in online direct selling.International Journal of Production Economics,144(2), pp.451-460. Phillips, J.M. and Gully, S.M., 2015.Strategic staffing. Pearson. Ragland, C.B., Widmier, S. and Brouthers, L.E., 2015. A Factor Endowment Approach to International Market Selection for Direct Selling. InIdeas in Marketing: Finding the New and Polishing the Old(pp. 474-474). Springer International Publishing.