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Undeniably, the main determinant of how a business makes a profit or loss in the market depends on how a business undertakes its sales and marketing strategies. In many occasions, companies having higher market share tend to be rendering higher profit levels compared to the ones having lower market share especially in most businesses. The connection that tends to exist between marketing and profitability is always a unique strategy of a company that makes it thrive in the business fraternity and it depends mostly on b2b marketing strategies.

 

For instance, most of developed firms tend to have high number of loyal customers who have made the products produced by the company a need in their lives. Thus, a slight rise of price of products from the firm will always have a minimal effect on sales as customers can still adjust their budgets to satisfy their wants.. Conversely, in upcoming or rather undeveloped firms, a change in the price index of goods as well as services will have an adverse effect on sales as customers will tend to find other options in the market.  This implies that market share and return of investment has strong connection. Thus, high rates of returns in a firm confirms the high market share in that specific company.

 

Notably, competitive pricing is like a description of market share in the sense that a firm would set prices of its products as well as services in accordance to the competition. This is a tendency on business that sell similar products as services tend to vary depending on the type of business. Most of the b2b marketing metrics firms dealing in similar products set prices below, at and above competition. However, inconveniences that tend to emanate on price marketing among firms dealing on similar product always pose a negative impact on the market share.

 

This is because it leads high chances of low market share on firms. Despite this effect being less on developed business entities, it deteriorates the market share of developing business with a greater percentage. Numerous scholars tend to argue that uncertainty is always a key to success of entry deterrence as new entrants have limited experience in the industry. If you want more facts, visit http://www.encyclopedia.com/topic/Internet_advertising.aspx.

 

 

Several factors such as demand of customers as well as post entry price poses a greater challenge for new entrants to predict their trends and exact amounts. One notion that always work against new entrants is that they lack adequate prediction of the trends and coming up with adequate solution of uncertain factors. It is from these factors that new entrants in the industry tend to be exiting owning to the fact that they are unable to counter uncertainties of deterrence. Visit copywriting website here!