Peenetration Pricing
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Penetration pricing is important to a company because it involves understanding the economic condition of its targeted audience and how to manufacture and sell a product according to the requests and demands that exist within it. This method of pricing does not necessarily mean that the price has to be extremely low or high but it must be reasonable for the market in 2hich the business intends to sell.
For instance some companys offer products at a higher price, according to the details invested in packaging or materials and etc. to one market. However it may sell the same item minus the details to another market for discounted prices.
In order to incorporate any aspect of business to maintain capital flow the company must be concerned with having motivated employees who are competent in carrying out their respective duties. Therefore Employee Empowerment must be incorporated. This aspect of business involves educating, recognizing and compensating employees in order to inspire each one to provide quality commitment in work efforts on behalf of the company. Educating employees give them the tools to operate with confidence in knowing how to adequately handle situations and make decisions which may be required.
It will also lessen chances for erroneous operations.
Recognition may provide the employee with confidence and inspire Recognition may provide the employee with confidence and inspire each one to continue to do his/her best because someone cares about his/her efforts and considers the hard work and long hours which are invested. Compensation may come in the form of raises and incentives which further provides one with confidence and also satisfaction in that the company not only cares about the needs but it cares about the desires of the employee.
There are several companies which have successfully incorporated both Penetration Pricing and Employee Empowerment on a very publicized scale. One of which is Subway restaurant. A restaurant founded by a 17 year old male who considered his intended customers health. His passion led him to open a restaurant that would serve nutritious items on its menu and keep farmers employed. In 2006 the company;s key endorser ,Jared Fogle , inspired millions to shed pounds and adopt a lifestyle of healthy eating. As a result many of the inspired persons became avid Subway customers.
Later in the campaign Jared Fogle Foundation was implemented and was geared toward saving lives of at risk obese children which still exists Today. The company practiced penetration pricing by running the 5 Dollar Foot long campaign in which it sold 12 inch submarine sandwiches for only $5! The company was so successful that it now owns more restaurants than and it is second to its long time competitor, MC Donalds as reported in 2010.
The company Employee Empowerment may according to one article Employees