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                                    underpinning purchases and investments. It underlines the need to understandthe market and the significance of several factors such as product quality,pricing, reliability, sustainability, compatibility, and public opinion in shaping thefinal buying decision.Notably, in the context of a frugal solution, it%u2019s paramount to strike a balancebetween capturing value from the uniqueness of innovation while ensuringrelevance and accessibility for the target market. Therefore, the chapterelucidates diverse pricing strategies catering to frugal and innovative solutions.Shifting focus to sales, this chapter considers the methods to effectively sellthe frugal innovation offer to European customers, touching upon differentpotential customer segments within the European context. Recognising theimportance of localisation, the chapter emphasises the need to understand thecultural, regional, and language nuances inherent in different European markets.It explores the sales stages in a negotiation process, underlining the importanceof interpersonal skills, product knowledge, and customer experiencemanagement in a face-to-face selling scenario. This journey ofcommercialization, while challenging, aims to show the reader how to navigatea European market landscape, promoting frugal innovative solutions effectively.n 3. 3. 1. Margin and turnoverIn essence, vigilance over the break-even point and profitability is fundamentalto a company. The break-even point is a balance between income andoutcomes. At that point, the profit is reached and the margin can be generated.The aim of each company and business model is to get a margin or surplusflow at the end of a period (Slywotzky, 2002).There are multiple costs, but there is only one flow of turnover. This explainswhy every manager will be attentive to the daily turnover and the satisfaction oftheir company%u2019s clients. The break-even analysis can be explained in thefollowing figure (Fig. 3.3.1): %u25aa The x-axis (horizontal line) represents the quantity of products sold.%u25aa The y-axis (vertical line) represents the revenue and costs in monetaryunits.%u25aa A straight line from the origin (0.0) up through the y-axis represents fixedcosts. They remain constant regardless of the quantity of product sold.%u25aa Another line starts at the point on the y-axis representing fixed costs andslopes upwards. This is the total cost line (fixed costs + variable costs).%u25aa A third line starting from the origin (0.0) slopes upward more steeply. This isthe total revenue line.%u25aa The lines representing total cost and total revenue will intersect. This pointof intersection is known as the %u201cbreak-even point%u201d.1413.3 Approaches to European Commercialization Practices
                                
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