Perfecting the price policy at Nu Hoang Trading Company - 10

In order for price changes to not have a strong impact on the company's business operations, the company must base its decision on the market characteristics when increasing or decreasing product prices. When changing prices, the company must consider the reactions of customers and competitors to those price changes.

On the customer side, the company needs to consider who its customers are, what their characteristics are, and their views on price. To do this well, from the beginning, while researching the target market, the company needs to record the characteristics of each customer group, and their reactions to price changes. From there, the company can decide how much to increase or decrease is appropriate to avoid increasing or decreasing too much, which will affect the purchasing activities of customers.

While changing the price, the company also needs to pay attention to the reaction of competitors to prepare appropriate countermeasures. However, the important thing that the company needs to do before choosing its options is to carefully consider the life stage of the product life cycle, the importance of the product in the product portfolio of the company, the resources of the company and its competitors, the elasticity of demand and the opportunities of the company when changing the price. When answering these questions, the company can make a good price change.

In addition, during the business process, the company also needs to pay attention to competitors' price changes because when competitors change their prices, it will affect the company to some extent. Before dealing with competitors' price changes, the company needs to consider the following issues:

Why do competitors change prices?

Competitors lower prices permanently or temporarily.

What could be the consequences for the company's profits and market share if it fails to deal with that price change?

How will the company respond? What will be the next reaction of the competitor.

After finding answers to the above questions, the company can respond in the following ways depending on the situation:

Keep prices the same if you feel you are not losing too much market share and can win it back if necessary: ​​if you reduce prices you may lose a lot of profit. Increase advertising and promotions.

A company's selling price is lower than its competitors, a company will only do this when it has the financial capacity to sustain it in the long term.

Raising prices while improving service quality or improving customer perceived value of the company's products and services while keeping the selling price the same.

Launch additional low-priced products and services in your product line, or create other low-priced services if the market is price sensitive.

2.7. Perfecting Marketing policies to support pricing policies

2.7.1. Perfecting product policy

Product is the first and most important element of the Marketing-mix system. To be able to compete in the long term in today's market, product policy is an effective tool for this race. Therefore, further improving product quality is always a requirement for Nu Hoang Travel Company. The company advocates increasing both the length and width of each product to help customers choose a program that suits their abilities.

In terms of breadth, diversifying the types of tourism with many forms of tourism such as eco-tourism, rural tourism, and medical relaxation. To do this, the company needs to consider the demand for tourism and future tourism trends of customers. In particular, the company must have preparations in terms of materials, human resources, and relationships with service providers at tourist destinations in the program.

In depth: The company must show customers that in each type of tourism there will be many tours built with different prices and services.

different for customers to choose from. The products offered in the program always show new and attractiveness, with a high level of compatibility. That compatibility is shown in both the price and content of the program.

The company needs to understand the general and specific characteristics of each customer group in order to have a corresponding product policy that suits the needs, characteristics and preferences of the customers. Only then can the company survive in the market for a long time and attract customers to the company.

In 2010, the company is trying to penetrate further into the high-income customer market. A market that many companies want to target but do not have the ability to do so. To gain the attention of this customer segment, the company must first build a product policy that is suitable for the characteristics of the customer, and the product quality must be at the highest level. With that goal, the company needs to be well prepared in all aspects such as human resources, finance, good customer relationships, etc.

2.7.2. Perfecting distribution policy

The company's choice of distribution channels in the coming time needs to add some more distribution channels in terms of both width and length of the channel. Still using direct distribution channels with traditional customers. Using this form of direct distribution channel has brought good results in the past time.

But to attract more customers and expand the business market, the company should use some more intermediary channels to reach customers in remote areas, share and disperse risks, and specialize the work of channel members.

The company needs to pay more attention to the management of distribution channels in the coming time. For direct distribution, the company needs to focus on daily distribution operations, further improve distribution tools and apply them more in the distribution process to increase efficiency and reduce time and money for both the company and customers.

When a company uses indirect distribution channels to achieve the goal of expanding its business to new markets, the number of intermediaries is large.

It is necessary to have measures to manage channel members to avoid risks in the distribution process, encourage channel members to operate long-term, and have policies to encourage channel members with clear reward and punishment regimes. At the same time, when risks occur or conflicts arise in the channel, the company needs to coordinate to resolve those conflicts to avoid the situation where conflicts exist for a long time without being resolved or resolved but not completely, which will affect the distribution.

2.7.3. Perfecting promotion policies

Although the promotion tools have been used quite effectively, in the future, to achieve higher efficiency, the company needs to have measures to promote the strengths of these tools. To come up with a suitable promotion policy, the company needs to rely on the business goals, the customer base that the company is exploiting, etc., then it can come up with appropriate promotion methods.

With advertising, the first thing a company must do is determine advertising objectives. These objectives must come from decisions about the target market, product positioning in the market, and marketing policies. Once the advertising objectives and target audience are determined, the company will then choose a specific means of communication. In the past, the company mainly focused on designing and sending leaflets, while other forms of advertising have not received much attention. If the company wants to increase the effectiveness of this tool, in the future, it can advertise through the company's website, or on local newspapers and radio stations...

Promotion: The company's promotional programs need to add some forms of promotion combined with product discounts. Offer promotional programs suitable for each target audience. Promotional programs must be specific, clear and inform customers about those promotional programs. The company can use some of the following forms of promotion:

1. Cash back is when customers are given a refund after their trip.

2. Selling cheaply at a package price will encourage customers to buy multiple services in a package.

3. Free trials are inviting potential buyers to try a product without paying for it in the hope that they will become regular customers.

4. Link promotions between two or more tourism and hotel businesses to promote together using the above tools to increase the ability to attract customers.

Sales: This personal selling is used quite commonly for small travel businesses like Nu Hoang. The importance of personal selling depends on the nature of the product, the needs of consumers and the stage in the sales process. The company must understand that in many cases, sales activities are not only to sell products but also to establish relationships with important customers with the goal of serving them, thereby making them trust and see that they can be served best and creating long-term relationships with those customers, they must be paid attention to regularly and continuously. Thus, the company needs to discover important customers, assign good and experienced employees to monitor the relationship, build long-term plans with them. And internal sales in the company need to be very focused, the responsibility of promoting the company's services is not limited to the marketing and sales department. All employees who have contact with customers are responsible for promoting the company's services. Only then will sales activities bring high efficiency to the company.

The company's sales management also needs more attention, the tasks that the company needs to perform are analyzing, planning, and implementing sales activities. Including the following activities:

Set goals for sales staff, the construction of which depends on the nature of the market and the position that the company wants in that market.

Determine the size of the sales force, determine the number of employees

sales in specific areas.

The company needs to recruit a sales force with expertise and communication skills, and at the same time must develop working regulations for employees so that they can work according to requirements.

Build salary and bonus policies for sales people to encourage them to work better.

2.7.4. Perfecting human policy

The human factor always holds a very important position in service marketing in general and in the tourism business in particular. The success of a tourism company's marketing depends largely on the recruitment, training, coaching, motivation and management of people in the business.

In a travel company, there are many departments and each department has its own requirements. Training the skills and good working attitude of the staff has a decisive influence on the quality of the service provided. There is a reality in the company that the company can easily recruit people who are proficient in their work but lack communication skills or vice versa. To select and train a team of staff who are good at both aspects is extremely difficult.

To be able to perfect the company's human resources policy in the coming time, the company needs to perform some of the following specific tasks:

Recruit additional staff with two main groups: staff who directly contact customers and staff with new services. The selection must be done carefully, not only based on professional qualifications but also based on the criteria of service staff. Based on the ability and qualifications of each person, assign them appropriate work.

At the same time, it is also necessary to do a good job of organizing, such as creating the infrastructure necessary for the success of the service. The company's reward system must be linked to important actions that both benefit the business and are consistent with the wishes of the employees.