Research On The Marketing System Optimization Of XH Steel Trading Company

Iron and steel industry has been a major national pillar in a country, tens of thousands of steel traders play an important role in the industry. But after experiencing quite a long high growth stage, the overcapacity of this industry and the declining level of profitability gradually revealed, thus making the steel trade enterprises in dilemmas: sales blocked, financing difficulties, the lower profit level. In order to get rid of these unfavorable situations, many enterprises make every attempt to find new profit growth point under the background of oversupply of a buyer’s market.In this paper, XH company engaged in steel trading is taken for the research,analyzing the company’s operating conditions, its internal and external environment comprehensively. The article thinks, apart from the macro factors of the iron and steel industry overcapacity, there’re three main reasons causing XH company sales and profits continued declination. Firstly, the steel trade industry is most seriously affected by continuous falling steel prices, a large quantity of inventory causing serious losses. Secondly, its target market selection is single. Thirdly, its marketing combination strategy cannot adapt to the current fierce competition.XH company reverses its tough situations only though reselecting the target market, improving the marketing combination strategy to reduce management risk,hence, XH can promote sales and profitability. To achieve this goal, XH company must optimize the marketing system as the overall strategy, reselecting target market,adjusting supply structure, improving marketing channel, implementing differential pricing strategy and other aspects to construct new marketing system. Only in this way can the XH company get out of the predicament in the increasingly fierce market competition, and can realize the sustainable development.