Code of Conduct
The code of conduct of Korwin should reflect the values of Korwin pharmaceuticals. First, the employees should ensure that the products are of good quality and meet the customers’ needs. The products should meet the required standards set by regulatory authorities. Secondly, the employees should make sure that the products are fair. The price should be pocket friendly to the vulnerable people in society. Third, the customers’ interests are considered from the start of product development to the end. Finally, the employees are supposed to ensure that the correct message is used for advertising.
Pioneering advertising: This advertising aims to stimulate primary demand for a new product. For example, we can use messages such as; purchase high-quality, low-cost anti-allergen medications.
Competitive advertising: the goal is to influence demand for a given demand. For example, we can say that the products exist to meet the customers’ needs in the market.
Comparative advertising: in this advertising, it is important to compare two or more brands on one or more specific brands (Piccolo et al., 2018). For example, we can say that when compared to the market’s major brands in the market offering similar products, our products are quality and more affordable.
Public Relations Strategy
Public relations (PR) assist in building and maintaining a positive public image of the business. To achieve this, Korwin can use the strategy of creating appealing content to appeal to the target audience’s emotions. The message is supposed to capture the interest and needs of the target audience (BBN Central, 2016). It should consider aspects such as value and relevance. It should create a picture that the organization is socially responsible and that exists to improve people’s lives. For instance, we can say Korwin will assist you in getting the product you need at a pocket-friendly price.
The following are the tools that the organization can use to promote the products;
- Consumer sales promotion: the organization can use free samples. This tool is integral in this case because the products are new. Free samples are usually given to clients to capture their interest in the product.
- Personal selling: in this type of promotion, sales presentations can be used to market the product. This can be carried out on-person or online to tell the customers about the benefits of a product.
- Social media: The organization can effectively market through social media. This is a tool that can assist an organization in efficiently engage with the customers on social media (Chen & DiVall, 2018).
The AIDA Concept
The AIDA Model is an advertising effect model which describes the phases that a person goes through when purchasing a product or service. It consists of attention, interest, desire, and action. Firstly, the organization can get clients’ attention by informing them about low cost, availability and product quality (Mumtaz, 2019). Secondly, the organization can get customers’ interest through operations such as free samples. Thirdly, the organization can develop desire by talking about the advantages of the products to customers. Fourthly, the organization can take action by offering discounts on the products to clients.
The three pricing strategies are cost-based, competition-based and value-based pricing. Cost-based pricing is where an organization determines the price of a product based on the cost of production. In this pricing, rebates can be used to promote the products. Value-based pricing is a type of product pricing where an organization sets the price based on the value offered to a customer (Classen & Friedli, 2019). Finally, competition-based pricing is where an organization sets the prices of products based on the prices offered by a competitor. An organization can use discounts to attract more customers and achieve a competitive advantage in this pricing.
How to Determine a Profit
One of the pricing objects is using the cost of production to determine the price of a product. An effective pricing strategy can be determined through profit. Based on this, the revenue made by an organization can be used to gauge the effectiveness of a cost-based pricing strategy. A strategy is effective if it attracts more profit, which means that the revenue is more than the cost of production. In addition, a high profit means that the strategy resonates with the customers in the market.
The other pricing objective is to use the value of the product to determine its price. Based on this, the higher the product’s value, the higher the price. The main aim is to attract customers who want value. In this case, the more customers the organization attracts, the more the profit. For example, Korwin anticipates attracting middle-class individuals who want quality products. However, less profit is realized when the organization fails to attract customers.
The other pricing objective is to price a product based on what is offered in the market. Since competition is high in the healthcare industry, the organization can ensure that its pricing is low compared to its rivals. The main purpose of this initiative is to attract more customers to the market and make a profit. A low price is more likely to resonate with a vulnerable population, and it will attract more customers. As a result, the organization is expected to profit more when more customers buy the products.
Korwin pharmaceutical strive to be sustainable and promote the values of its founders, who wants the organization to offer quality and low price products to make sure that everyone can purchase the products. First, in the code of conduct, the employees should understand that ethical operations is the core function of the organization. For example, they should make sure that the price of the products are favorable to the middle-class families and individuals. In addition, the organization should make sure that integrity and honesty is applied when promoting the products.
BBN Central. (2016). Top Ten Tips for Creating Engaging Content. BBN. Web.
Chen, E., & DiVall, M. (2018). Social media as an engagement tool for schools and colleges of pharmacy. American journal of pharmaceutical education, 82(4).
Classen, M., & Friedli, T. (2019). Value-Based Marketing and Sales of Industrial Services: A systematic literature review in the age of digital technologies. Procedia Cirp, 83, 1-7. Web.
Mumtaz, R. (2019). Awareness and Perspectives Social Media as New Strategic Marketing Approach in Minor Industries; Notion grounded on AIDA Model. Journal of Content, Community Communication, 10.
Piccolo, S., Tedeschi, P., & Ursino, G. (2018). Deceptive advertising with rational buyers. Management Science, 64(3), 1291-1310. Web.