Of course there is a very great relationship between the price of commodity, consumer behavior and marketing activities. In order to make the maximum possible profits, the business organization must come up with the best marketing strategies over the other competitors. It is a common business concept that price is one of the major factors determining the demand and supply of the product. It is therefore true that the behavior of the clients willing and able to buy a Ferrari will depend on the marketing strategies adopted by the producer. In other words, for this company to realize large volume of sales of its stock, it must adopt the most desirable marketing strategies that will appeal to the clientele (Homburg, C. et al., 2009).
Price refers to the total amount of money or anything equivalent to it that is offered in exchange of a commodity in an agreed transaction. As already highlighted, it has a very significant influence on the behavior of the consumers towards the commodity being sold in the market. The price of the commodity is indirectly proportional to its demand. This means that, the lower the price, the higher the demand of that product. Therefore, the buyers’ behavior will be influenced towards buying it because they feel that it will help them to minimize their expenses. It was a competitive free market where similar commodity sales at different prices, the buyers will opt for the enterprise those supplies at the lowest price.
On the other hand, the buyers will behave differently if such a situation is reversed. Meaning, if the firm opts to sell its commodity at a higher price, it will not appeal to a lot of customers. In fact, this may make it lose some of its potential buyers who were initially purchasing the same commodity from them at a slightly lower price. Instead, they will run away and seek for the competitive firms that are ready to supply the same commodity or its closest substitute at a lower rate (Kotler, P. & Keller, L. K., 2012). In this regard, it is important for an entrepreneur to understand the clients’ psychology and address their needs appropriately.
The above explanation is actually applicable in the case of Ferrari. For this company to achieve its long and short term objectives, it must be able to come up with brilliant marketing strategies. These should be well formulated after carrying out an extensive research in the target market to ensure that they understand the diverse needs of their clients and address them appropriately. Then they should come up with the smartest feasible plans. However, this should come only after thorough evaluation of the market condition and ascertaining the level of competition in the market.
The most important way of realizing sales is through the setting of the appropriate fair price for their product. Even if the major goal of any business is to make profit, it is important to put the interest of the clients first. The price should be fair and be in line with the internal and other external forces. If a higher price is set, it will be unnecessarily exorbitant. Eventually, it will demoralize the buyers because they will perceive it as exploitation to them. The buyers for the Ferrari will only purchase it at 20k pounds if it is the appropriate price.
If the company wants to realize more sales, it will be upon the management to come up with clear pricing policies. If they set a relatively, lower price (as compared to their competitors), the demand of this product will increase. Hence, it will realize high rate of stock turn over and in turn get more profit. This translates into understanding the psychology of the clients and responding to it in a manner that best suits the situation. Actually, their behavior will be altered depending on the kind of rapport established between them and the company.
Otherwise, if this price is higher than the prevailing market price, it will not appeal to them. Hence, they will not be attracted to purchase this commodity because they will view it as exploitation to their income. Eventually, they will decide to forgo this commodity to buy its substitute or purchase the same commodity from another competing firm. The Ferrari management must be in a position of understanding how to manipulate their clientele. If they can not come up with applicable strategies, they will not only be able to increase their clients, but also to retain the existing ones. So, it is advisable to scan the environment and evaluate the situation before coming up with the most appropriate price to make their commodity be the most admirable in the market.
Meanwhile, the other way through which this company can realize the best sales from their products is through the use of branding. This refers to a method of using unique identities for the commodity in order to differentiate it from the others of the same model, make, value or name. If a commodity is given its own identity, it will be easier for the clients to know more about it and distinguish its features from others (Symonds, W., 2000). However, in order to make this strategy more successful, such information should be communicated to customers through a series of advertisements done both in the print and broadcast media. All these should be quite informative and appealing to the target groups. Surely, this will be a revolutionary step that will change the perception of the entire market.
Besides, Ferrari should adopt a relationship marketing in which it all that it possibly can to create an admirably good rapport with its customers. In order to sell its products in line with its policies and objectives, the management must acknowledge that the most important group to focus on is the clients. Establishing a good relationship with the buyers will restore their trust. As a result, they will have confidence in the organization and accord it the maximum possible support. They can only purchase the commodities if they have faith in the firm. Otherwise, if this relationship is turbulent, they will not look for any commodity from this company. Eventually, it will lose its customer base, a development that will automatically derail its success.
In addition, this company can adopt industrial marketing strategies in which it collaborates with the firms producing similar or substitution products. Through such co-operations, the Ferrari will use its development partners to get more information about their clients. Hence, it will bridge such gaps by communication, advertisements and sales promotion. Through this, the clients will be enlightened on the existence of that particular commodity and up date them on the latest developments. In deed, this can help to manipulate the buyers and possibly change their position towards the commodity (Laermer, R. & Simmons, M., 2007).
Rather than the above marketing strategies, the successful selling of this commodity can be realized if the manufacturer opts to use the SWOT analysis theory. This refers to the act of scanning the position of the firm by focusing on its strengths, weaknesses, opportunities and threats. If the management becomes aware of t its milestones, drawbacks and looks at the internal and external forces thwarting its supposed success, it will be in a safer position to improve its performance. As a result, the best actions will be taken to address the discovered inefficiencies that might have continued to derail the successes of the company. Eventually, there will be increased sales because of the commodity since the necessary adjustments will have been made.
Last, but not least, the company can adopt market segmentation theory to market its products. This means that it will sub divide the available market into categories by focusing on the social, political, economic, environmental, economic and legal spheres. Hence, appropriate measures will be taken to address each of these needs. When doing this, the management must acknowledge that each of these people have diverse needs that need to be addressed using other theories. Notably, the Abraham Maslow’s Need Hierarchy theory which states that individuals have needs which are arranged in an order right from the most basic to the sophisticated. In this regard, it should be upon this manufacturer to know that it should supply different brands of this commodity to satisfy clients’ physiological, safety, belonging, esteem and self actualization wants. Actually, this theory is essential in tailoring the clients’ behavior towards the products of this manufacturer (Brown, H. et al., 2004).
In conclusion, I would like to assert that the success of any business enterprise largely depends on the feasibility of its plans. In this regard, the most important thing to do to maximize sales is to adopt the most desired marketing strategies that will coax the clientele. Based on this case, I emphasize that Ferrari will only be desirable to its customers in case the most viable options are enforced. There should be a thorough understanding of the clients’ psychology and making of the most appropriate changes in creating uniqueness in the company and its products. This will lure the buyers to change their perception towards this company and eventually prefer it to the other competing firms.