Mitsubishi Marketing

The article entitle Mitsubishi cuts expenditures was written by Peter Roberts, and was found in The Australian financial Review website, dated April 28, 2006 (which can be accessed at www.afr.com). The tradeing ideal utilise in the article is that of the pricing-cutting employed by Mitsubishi in its adjudicate to profit sales for their new products transmit.PRICE-CUTTINGPrice-cutting is rampant in the railcar manufacturing industriousness where the only established price in the channel is the one at which the manufacturer sells. Specifically, Yadin stated that price-cutting is a marketing technique involving temporary reductions in the price of a product or service, aimed at increasing market share (2000300) The concept of price-cutting as a strategy means to glare prices as compared to the original price set mainly in indian lodge to increase sales (Wilmshurst and Mackay 2002279). Alternatively, price-cutting may be used as a deliberate pull strategy in order to achieve l ower costs by expanding sales.A companys attitude to price-cutting, check to Baker (200063), should be influenced by its relative position in a particular market. In Roberts article, this marketing concept is depicted when the Australian car maker made massive price cuts across its range, as a direct response to its blunder in the companys launch pricing strategy, particularly in the locally made 380 model. The introductory split up immediately pointed this out, and in the later part of the article showed how the firm was adequate to do this, which is by shaving dealer margins and negotiating better supply prices from Mitsubishi in Japan.In relation to the article and the way the price-cutting concept has been discussed in the lectures and in the text book, the two are comparatively alike because of the latters discussion of using the price-cutting strategy in already established companies, which is ruminative of Mitsubishis position in the automobile manufacturing industry. In the same way, Mitsubishi used the price cutting concept in order to respond to profusion capacity, falling market share, and dominate market through lower costs, estimable what the discussions in the initiating price changes similarly pointed out.The lecture notes also implied that customers are reactive to price cutting as long as the perception of denounce and product value remains unchanged, which is what the article points out as the expectations of Mitsubishi regarding its increase in sales. In the automobile industry where the market dictates the selling price, this price cut is imperative of Mitsubishi.WORKS CITEDBaker, M 2000, Marketing Theory A Student Text, Thomson Learning, London.Wilmshurst, J & Mackay, A 2002, The Fundamentals and Practice of Marketing, Butterworth-Heinemann, Jordan Hill, Oxford.Yadin, D. (2002). The International lexicon of Marketing, Kogan Page Limited, London.