2013年12月5日星期四

Appearance, packing and pricing

Compared to clothes, shoes and other products, there is no need to go for the appearance of the product and packaging of the enterprise network. However, this does not mean that they are not important. As a kind of data equipment, Huawei and Cisco should try their best to make the equipment light and attractive. In this way, the corresponding technology should be kept up, just as the invention of the integrated circuit, for example, laid the foundation of the modern information technology. With regards to the packing problem, I think the customer should be more careful about the nature of the product.  

There was also a very interesting phenomenon in previous analysis which was the Huawei's low-price strategy. Low prices certainly have their advantages without a doubt, for example, it is able to attract more customers. However it should be noticed that excessively relying on lower prices to gain market may also be counterproductive, which will not only make the customers doubt about the quality of the product, but also have an adverse effect on maintaining the company’s brand image.

Pricing, as one of the most important parts of marketing, deals with the price of goods, services as well as the changes of strategy so as to obtain the marketing effectiveness and the best benefits. Influencing factors include: enterprise marketing target, cost, customers, competitors and other external factors.

With regards to network products in Huawei and Cisco, first of all, in order to reduce the price, the cost of production can be cut down by improving technology; Moreover, reasonable marketing targets should be established and mathematical method should be used to establish model and calculate the most to gain pricing area; Third, demand-based pricing method should be adopted according to customer needs and psychologies; Fourth, as competitors, the pricing in Huawei and Cisco depends on the game between the two company themselves.

As a result, according to relevant information, for a company just entered network market like Huawei, penetration pricing can be used, namely, to set a lower price at the beginning of the new release and to obtain the highest sales and largest market share as the target. And for Cisco, although it has a technical guarantee, however as a non-native enterprise, it should also pay attention to the situation of the Chinese market, policy guidance so as to adjust price constantly.



Source:
Pricing, Baidu Baike, Dec 2013


SUN Jiawei


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