Make Money Online MARKETING 1. DECISION MAKING UNDER MARKETING STRATEGIES || TRANSFER PRICING || Q – 1 || M.COM || RAHUL CHAUHAN

1. DECISION MAKING UNDER MARKETING STRATEGIES || TRANSFER PRICING || Q – 1 || M.COM || RAHUL CHAUHAN

1. DECISION MAKING UNDER MARKETING STRATEGIES || TRANSFER PRICING || Q – 1 || M.COM || RAHUL CHAUHAN post thumbnail image


Introduction

Many business owners struggle with making decisions when it comes to marketing strategies and transfer pricing. This article will provide some clarity on the topic so you can make more informed decisions for your business.

What is Marketing Strategy?

A marketing strategy is a plan of action designed to achieve certain objectives within a specified timeframe. It generally includes an analysis of the current situation, competitor analysis, customer insights, and target market segments. The main objectives of a marketing strategy are to attract new customers, retain existing customers, and promote brand awareness.

What is Transfer Pricing?

Transfer pricing is the price charged for goods or services transferred between two related entities. The price charged must be arms-length, which means it should be the same as if the transaction was between two unrelated parties. Transfer pricing is used to determine the cost of goods sold (COGS) and gross profit margins. It can also be used to allocate costs between different business units or countries.

Why is Marketing Strategy Important?

Marketing strategy is important because it enables businesses to focus their resources on activities that will achieve the desired objectives. Without a clear plan of action, businesses can waste time and money on activities that don’t lead to growth. Additionally, a well-defined marketing strategy provides guidance on how to allocate resources across different marketing channels. For example, if a company wants to increase its online sales, it will need to invest in website development, search engine optimization (SEO), and online advertising.

Why is Transfer Pricing Important?

Transfer pricing is important because it affects the financial statements of both the seller and the buyer. If the transfer price is too high, the seller will record a higher COGS and lower gross profit margin. On the other hand, if the transfer price is too low, the buyer will record a higher gross profit margin. In either case, the financial statements will not accurately reflect the true economic performance of the companies involved in the transaction. Additionally, transfer prices can be used to minimize taxes owed by multinational corporations. By carefully setting prices for transactions between related entities in different countries, companies can minimize their overall tax liability

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