Advantages Of Cross Selling

We are dwelling in an age in which everything needs to be instant. Competition is stiff, hence, any company that needs to maximize sales must use all tactics to win the attention of the

Although these are positive qualities of our company, our competitive advantage is costly. By having a product for every customer, we may not be focusing enough on our best product that could be generating the highest profit. If we invest the same amount for every product, it could lead to investing too much money on those products not performing as well; moreover, not investing enough on those products performing the

Accordingly, to reach the scale of revenue required would mean increasing the number of transactions per month a few folds from 2,000 to 8,000 transactions. Moreover this would require not only increase in the marketing of the existing 2,000 products listed on the store, but a significant increase in the breadth of product offerings. If the number of vendors was not going to increase the current process might continue be manageable, nevertheless one of the Store’s strategies is to limit the number of products from each vendor to only 20, hence requiring an increase in the number of vendors fourfold which is relative to the increase in revenue.

The company has recently decided to expand its product line to include a product that is a deviation from our traditional offerings. The expansion presents two potential outcomes. Outcome one has a potential for profit, incremental growth, and additional market share for the company. Outcome two has a potential for financial loss, reputation or brand damage and reduced market share.

4. By expanding the distribution channel one single customer doesn’t dominates the market share, and limited distribution channels could affect company’s bottom line.

Being able to acquire a new market may bring those new customers to their current market.

Retailers offer different merchandise assortments to the customers, and one of the key functions of the retailer is selecting the appropriate depth and breadth of various branded products and their assortments, and to decide how best to tailor the product offerings for specific target consumers (Joachim Zentes, Dirk Morschett, Hanna Schramm-Klein, 2007). One drawback, which we have identified, is the lack of customization options available for customers on all three of the websites, i.e. Target, Macy’s and Nordstrom. It is important for online retailers to offer customization offers to the customers, so that they can tailor make their products as their very own. While it is true, that this option is mostly used for niche markets, however, in

CVS needs to think through numerous elements impacting its’ business. Pricing strategies, rivals and their current products, consumer demands and suppliers are examples of these elements. For pricing strategies, CVS should consider closeouts, discounts, product bundle pricing, penetration pricing, geographical pricing, and membership or trade pricing.   For non-pricing strategies, options comprise: enhanced service quality, longer opening hours, advertising, and extended warranties (Kimmons, n.d.). By pricing similar products in a different way they must focus on regional demographics because geographic pricing enables the maximization of profit. For promoting unique or new products at provisional price drops, penetration pricing is the most effective.   Finally, bundle pricing and closeouts can be engaged when several

Profits on individual sales can significantly increase overtime through product bundling strategy when it is effective. Selling multiple products or components in one solution means a greater initial return on the costs of acquiring a customer. Bundling is sometimes used to as a way to package less

The features are consumer-friendly and guide the customer through product listings that rival any major department store. Their website allows the recommendation of future product purchases based on consumer shopping/browsing history saved through their advanced customer relationship management (CRM) system. Amazon’s initial desire was to prevent the average consumer from needing to leave the comfort of their own home to accomplish their normal and continual shopping needs. This desire continues to be the driving-point for Amazon’s foundation.

Smith et al. (2006) identified that there is a complicated interaction between marketing effort and sales efficiencies. However, if the collaboration between sales and marketing is improved, the company will gain significant advantages. According to CRM (2009), in Sirius Decisions Demand Creation Waterfall, leads are moving the inquiry stage to marketing-qualified lead to sales-accepted lead to sales-qualified lead and finally to a close. At the same time, marketing is allowed to work closely with sales and they realized that coordination between two functions results in the increase in a pool of prospects with a higher possibility of closing (CRM,

Sharing their customers with developing their products build a strong and long relationship between them, and that’s an long term adaptive to the future market where the customers are more involved and they value their services over the prices.

- Sales increase: a) cross-promotions of each company’s brand and utilization of each company’s channels, and b) cooperation in international businesses.

In addition to increased sales, the company sets out to enhance the number of the overall customer share that they have.

Focusing on one area instead of trying to offer too many products is becoming a more effective way to market. Companies will start finding niches and then position themselves as the definitive source of information for specific products and services (Gunelius, 2010). When marketing too many products it is easy to dilute the market as well as the benefits of each product. When features overlap consumers not only get confused as to the differences but ultimately pick the cheaper one. So the costs to market the higher priced items become a waste. Focusing on fewer products allows for a more valuable product and therefore more effective marketing techniques.