Unit 9 P1,2 Business Jd Sports Case Study Essay
Being closer to consumers and providing exactly what they want is known as market orientation. JD Sports is a market-orientated business carries out research to find the needs and wants of consumers. It then uses the findings to design products and marketing strategies to satisfy these needs. This compares to product orientation which focuses first on developing a product and then seeks ways to persuade the consumer to buy it. They manage the balance of its marketing mix around its consumers’ needs in order to achieve business growth. JD Sports is a business to Consumer Company and therefore depends on how desirable its brands are to consumers. By providing exactly what the consumers want JD can outperform its …show more content…
The price charged for a product will depend on a number of factors such as, the cost to make it, the level of profit required, competitor prices and the price consumers are willing to pay. The demand for sportswear and casual clothing is likely to be price sensitive. Getting the price right is a key part of an organisation’s marketing strategy. This is because it is the price that directly generates income, allows debts to be paid, re-investment to occur in the business infrastructure and profits to be made. Businesses must ensure that the prices of products are value for money in relation to the quality of goods and services.
There are different pricing strategies which can be adopted to generate demand. These are Market penetration, Competitive pricing and Strategic pricing. Market penetration is the method of introducing a new product at a lower price to help gain market share. Competitive pricing is often used for well-known products or brands that are in high demand. Prices are similar to competitors. In order to stay competitive, JD must ensure it doesn’t charge higher prices for the same or similar goods than other sports and fashion retailers. Strategic pricing could be used to position an exclusive product or brand to make it more desirable for