OEM (original equipment manufacturing) is the company who only produces the parts or equipment's, which are marketed by other another manufacturers. Or they may also resell other companies products under their brand name. These companies do a complete market analysis to make their sales on the desired level. Creating targeted marketing profile is the most difficult procedure in marketing. The sales depend on the targeted customers.
Know the target audience:
Due to The current situation of the economy, the most important thing for the business is to have well defined targeted customers. The characteristics of the targeted audiences must be characterized like (age, gender, marital status). The location of the targeted audiences will help the brand to use location-based marketing strategy. The income level of the customers plays an important role in their purchasing power. The income decides their preference and predicts their buying behavior. Most people prefer to buy high-quality products at low prices, and some people only want cheap products of low quality. The buying power indicates how much people will spend on that product. Some people only want quality products at any price. The most important thing to consider while targeting customers is to analyze their needs.
Base on the target audience to choose the price range:
After selected the targeted customers the company will decide the price of their product. The prices are set according to the manufacturing cost incurred on making the product will deliver to the end user. The product is introduced in the market after getting the survey of people preferences. The price should be affordable for the targeted customers and deliver quality according to the price. The price range should gather all the targeted population of that particular area.
It is the concept of providing multiple services or products to the customers under one roof. The OEM brands also focus to provide their customers with a one-stop shop facility. The people will buy more when they have the available facility of many different products in one place. These will save customer’s time and helps the brands to increases their sales. And they also have the option to display their own products at that shop and introduce new products directly to their customers. They can also get directly feedbacks of their products.
Credibility/trust of the supplier:
The brands always try to maintain their goodwill in the market. The only way to keep survive in the competition is to deliver quality products to your customers. The delivery channel or the source from where the company gets raw material, are main factors for company progress. The brand doesn't rely on the new supplier, because they don't want to take a risk. If products fail to satisfy their customer, the brand name will affect badly. The supplier of the company must be trustable or give surety to deliver the quality product; most brands have their own suppliers. It’s a long term relationship between the supplier and the company.