View source for Sales and profit growth strategy

{{infobox4
|list1=
<ul>
<li>[[Low cost strategy]]</li>
<li>[[Growth shares]]</li>
<li>[[BCG growth-share matrix]]</li>
<li>[[Competition-based pricing]]</li>
<li>[[Operational gearing]]</li>
<li>[[Assets funding strategy]]</li>
<li>[[Sales objective]]</li>
<li>[[Cost leadership strategy]]</li>
<li>[[Marginal pricing]]</li>
<li>[[Selling Group]]</li>
</ul>
}}

In this [[strategy]] [[price]] is fixed at the lowest possible level, at the same time, assuming that the [[demand]] for the [[product]] in question is sensitive to the [[price]] (that is, the cheaper the more sales and more customers).

Low [[price]] allows to ensure sales growth, [[cost]] reduction in the long term and contribute to an increase in [[profit]].

==Objectives==
Objectives related to [[profit]] and sales growth [[strategy]] are: increasing the volume of sales and [[market]] coverage, and at the same time achieving a certain amount of [[profit]] in the short or long time. They can be generally achieved by enlarging the attractiveness of the product [[price]] in new [[market]] segments.

==Effects of application==
Low prices allow to increase the [[market]] share and [[profit]] growth. Managers seek to cut costs, as well as use of low [[profit]] margins, by offering a wide [[range of products]] to consumers who prefer lower prices. Through these prices businesses can increase the volume of its sales and [[profit]].

Application of low prices can be used in manufacturing companies which have large spare capacity. Low prices allow to increase sales and expand into new markets, which in turn can increase profits. However, the use of low prices could trigger a [[price]] war, a downward spiral of [[price]] reductions by competitors and as a result of the bankruptcy of some of them or lower profits.

Another equally important goal of [[enterprise]] is getting the desired rate of return from invested capital. Managers aiming for this goal use formula for fixing the so-called base [[price]], which cover the average total cost of 
[[production]] and sales of the product and planned rate of return on investment.

'''See also:'''
* [[Sales techniques]]

==References==
* Over, A. M. S. S. G. (2014). [http://www.journalofadvertisingresearch.com/content/jadvertres/54/4/393.full.pdf A Model for Predicting Advertising Quality As a Key to Driving Sales Growth]. Journal of Advertising Research.

[[Category:Marketing strategies]]
[[pl:Strategia wzrostu zysku i sprzedaży]]