Download 1 - JustAnswer

1.
To determine the proper marketing tools for a particular product and target market one
needs to understand how the target market acts, what it wants, and how best to speak to them.
Indeed, the “attitudes and values of the younger generations are a major factor to be dealt with
when developing marketing programs to attract new customers” (Delaney, 2005). Middle to
upper income buyers aged 30 to 50 include Generation X, Generation Y, and Baby Boomers
among their ranks. The majority of Gen X and Gen Y use the Internet actively, but only 43% of
Baby Boomers do (Devaney, 2002). However, all of these generations have a significant amount
of disposable cash, even during the recession, and being able to know how to reach them is key.
While all persons in this age group may share income and a desire to be fit and healthy,
they need to be approached differently to obtain the best results. For Gen X and Gen Y it is best
to target them through buzz marketing. This group likes to feel it is ahead of the crowd when it
comes to new products, such as this equipment (Fitzgerald, 2000). “‘The affluent young person
operates by word-of-mouth, ... When [the consumer has] seen an ad or read about a product in a
magazine, it's no longer extremely cool and exclusive. It means the masses are onto it’”
(Fitzgerald, 2000). Buzz marketing approaches people face-to-face, helps build word-of-mouth,
and creates a group that feels it is “ahead” of the crowd through these means. It is perfect for this
group. Sales promotions are another tool that will be effective for both the younger and older
consumers in this group. Sales promotions can include events, parties, informational sessions,
and other events designed to invite persons to the event based on their demographics. This
supports the message sent through buzz marketing and also allows an exclusive feeling to all
who attend. The fact that it is set up to not seem like “sales” is also very attractive to all who may
feel like they are learning about something important and that has “real” value to it. Finally, sales
promotions create excitement for consumers, which also helps further promote the product.
References
2.
There is a wide range of MP3 players on the market. From the ultra-expensive iPod sold
by Apple at about $150 or so to the $20 brands sold by discount retailers. All allow people to
store a different amount of music and are able to play that music as they wish. This new iPod
product will offer greater capabilities than the current products on the market but will not have
the Apple brand. The Apple brand, through several product innovations lead by the iPod has
generated a significant value for the company allowing it to price its iPod above that of other
sellers, even when the other sellers’ products offer more value, such as durability and battery life
(Buss, 2006).
The method through which Apple has distributed the iPod, however, would work well.
The exclusivity of the product, given that it offers more to consumers than the iPod would
indicate that it should be sold to consumers are a “special” product and one that they can only get
from one source. Direct selling, through the Internet as Apple has done, would be a low-cost way
to offer the product to consumers. Further, the website can provide a great way to demonstrate
and illustrate the product’s look, features, and desirability while still indicating that it is a unique,
exclusive, product (Direct, 2010). The pricing strategy for this product must ensure it competes
strongly with the iPod sold by Apple but that it also is priced so that the exclusivity feature does
not disappear. The best method would be to offer a price that is below that of the Apple iPod yet
above that of the lower quality, lower featured products. At this price point the product, due to its
better features and ultimately lower costs (better battery life), will make it profitable in the
market and help boost volume.
References
Product and Promotion: Create/Communicate
1.
In product development and marketing innovation is common and often necessary.
Continuous innovation involves the use of slight improvements or changes over time, such as
occurs in cars and appliances, for example (Perner, 2010). Continuous innovation does not
involve extreme or drastic changes, but slowly, over time, products begin to look or act
differently than they once did (Perner, 2010). Dynamically continuous innovation occurs through
changes in technology that improve the function of a product but that do not change the way the
product is used (Perner, 2010). For example, changes in the fuel used by electric cars or
hydrogen powered cars are these types of changes. Discontinous innovation occurs when a
product “fundamentally changes the way ... things are done—e.g., the fax and photocopiers”
(Perner, 2010).
A business can certainly survive long term, and very well, through continuous
innovation. The examples of the industries above indicate this. Further, these industries often
provide necessary products, those that people cannot live without but that do, often, run down
and need to be replaced. While the invention of the computer quickly ended the production and
sale of typewriters, the innovation used by automakers and appliance makers over time have not
led those industries to end. The fact that, “discontinuous innovations are more difficult to market
since greater changes are required in the way things are done” indicates that discontinuous
innovation industries, such as those that created the first portable phones, the fax (as email took
over), and others suffer a greater risk to long term success.
References
2.
Marketing must begin with the product. Only when a marketing plan is focused on the
product can it properly communicate to potential consumers. During a products initial
introduction, its introduction stage, marketing needs to ensure that marketing helps drive interest
and sales. During this stage the “product is not well known and ... sales are usually limited” so
marketing professionals need to increase knowledge and ensure potential consumers become
aware of the product and are interested in it (Perner, 2010). In the growth stage product
knowledge increases due to word of mouth and consumer demand brings competitors into the
market (Thompson, 2002). This means that marketing must focus on identifying differences
between products and raising brand awareness to compete effectively (Thompson, 2010).
During the maturity stage marketing must continue in the same vein but may also need to
add promotions such as sales declines or may need to innovate the product to attract more
purchasers (Perner, 2010; Thompson, 2002). In the decline stage marketing may need to focus on
additional promotions involving price declines (Thompson, 2002). If this does not occur then the
company may need to exit the market or develop a new use for the product.
References
3.
The six stages in the selling process are prospect and qualify, prepare, present, handle
objections, close the sale, and conduct follow-up. The first stage, that of prospect and qualify,
involves the first interaction between the potential buyer and the seller. It is during this process
that the buyer and seller meet and learn about each other’s needs. In the preparation stage the
seller works to develop a solution for the buyer’s needs. During the presentation stage the seller
presents his or her information to the buyer. In the handle objections stage the seller must
“reinforce in the customer’s mind the benefits” of making the purchase and provide methods to
overcome any objections or concerns that impede the sale (Matthews, 2004). To close the sale
the seller must ask the buyer for his or her business – this tells the buyer what to do and this is
often needed (Matthews, 2004). In the follow-up process a seller tries to build a long-term
relationship with a customer to help build future business. This is vital for future profitability.
As in many situations, first impressions are often the most important. Therefore, the first
stage of selling, the prospect and quality, is the most important (Matthews, 2004). When positive
it can easily lead to a sale but when negative it will begin the relationship on a negative footing
and nearly destroy any potential for a sale. While negative first impressions can be overcome, the
process is not easy. It is vital, therefore, for sellers to “get this part right”. Because this stage also
involved identifying what the customer needs it is also vital to get this part right so the seller can
truly offer the buyer something he or she wants.
References
Application Question
1.
A marketing plan for alternative music fans aged 18 to 24 should be centered around the
locations and activities this group is normally involved in. The age range of this group indicates
that they are likely in college and going to events and locations frequented by college students
and even young professions, fresh out of college. Alternative music fans are not fans that should
be advertised to in the way other fans are because they prefer being “off” and find value in being
different and innovative (Delivering, 2007). To reach this target group the media plan must
include social networking through Myspace and Facebook as well as information about the
station spread through word of mouth in local alternative music clubs and colleges/universities
(Delivering, 2007).
Beginning immediately the station will launch a music contest for local bands at local
colleges/universities and communities. This contest will require bands to send their tapes in and
the winning band’s music will be announced and played on the air during the station’s first
month of business. To entice fans to join the radio’s pages it will provide T-shirts to students
who join the Facebook and Myspace pages of the radio station before the station opens and
provide their names/addresses to the station. The radio station will offer a free Wednesday night
cookout/music event the second month after it first opens for business. At the party the station
will play music, interview attendees about their music tastes and local issues. The radio station,
learning from alternative rock group the Melvins, and provide “quirky” keychains with the
station’s message “A new voice for a new day” to the first 500 persons to arrive. In each of the
next four months the radio station will host meet & greets at local clubs where drinks and its
music will be played from 4PM to 7:30 PM. If possible, the station needs to consider partnering
with local bands and events to help increase word-of-mouth promotions.
References
Distribution and Pricing: Right Product/Person/Place/Price
1.
Distributors are used for several reasons. Sometimes they offer small businesses a way to
better sell their products throughout geographic regions that the business alone could not reach
because the distributer has more extensive shipping or retail connections. Sometimes they make
it easier for a seller to provide a product to the market because distributors have larger storage
facilities and can therefore stock more product for the seller than the seller can economically
stock. In some cases distributors provide important services with the product, such as
customization of the item for the ultimate purchaser or for particular purposes.
The Coca-Cola Company relies on its distributers to create place utility by stocking its
products nearly everywhere consumers may want a drink. Distributors who provide vending
machines to businesses make food items available to consumers when they want them, offering
time utility. Amazon, of course, offers excellent ownership utility as it distributes books and
other items for other companies on its website through easy clicks. A distributor that provides
important information utility is an insurance salesman who offers information regarding which
policy is best for a particular need. New car dealers offer service utility for they offer great longterm relationships and service after the sale (Russo, 2010). Form utility is offered by distributors
who help develop customized solutions, such as by offering to combine different products to
develop a unique one, as custom computer makers can do (Russo, 2010).
References
2.
Marketing strategies should compliment the product and the image it is designed to
provide. The distribution strategy, therefore, should support all elements of the marketing
strategy and should be selected on that basis. Distribution strategies may be intensive, selective,
or exclusive. An intensive distribution strategy uses every potential seller and distributer to
ensure the product is available everywhere for consumers. Gum sellers, who put their products in
supermarkets, airports, drugstores, hotels, convenience stores, vending machines, and many other
places (Williams, 2010). In the opposite distribution, exclusive distribution, only a few
distributors carry the products (Williams, 2010). This offers a more exclusive arrangement and
normally acts to create an exclusive aura around the product. For example, H&M stores who
contract with certain designers to design goods for their low-cost stores, uses this strategy and
drives people to its select locations to obtain these products, which often sell out.
Lastly, in selective distribution a company offers its products through more than one or
two retailers but not to all retailers. For example, Apple uses this strategy to sell its iPod through
Wal-Mart, Overstock.com, Apple stores, and the Apple website. The product is restricted enough
so it is special because it is not everywhere but it is available, certain versions of it, in other
locations so that multiple price points for the item are available to different consumers.
References
3.
There are many products that marketers need to sell and that marketers use volume
oriented pricing strategies to sell. One company that uses nearly all of the volume oriented
pricing strategies would be the supermarket company Kroger. This company uses price
reductions, sales, promotions with coupons, and buy 10 for a dollar each, and makes large
purchases to obtain goods a lower costs (Boatwright, 1999). The retailers also targets its
promotions for specific markets, ensuring that its volume driven products are specifically
targeted to its local customers (Boatwright, 1999).
For the products Kroger and other supermarkets are selling this strategy is very effective.
It drives business to the stores to purchase the specific goods the retailers may have overstocked
or which they are promoting to drive sales. Volume oriented pricing does not fit all products, but
food items are necessary items and, when prices are lowered on items that people like to eat or
are kitchen staples they do run to purchase them on sale.
References
Application Question
1.
The image of the retailer dramatically affects the price. For example, diners sell coffee
more cheaply than do Starbucks or Panera and “no-brand-name” gasoline is cheaper than that of
brand name gasoline. Location also matters. Gasoline stations near the highway or expensive
parts of town charge more for gasoline due to location. These are the two most important factors
which determine the products’ costs. Service in terms of gasoline does not matter, nor,
apparently in coffee. Indeed, local diners have better service than Panera or Starbucks who
charge far more. In terms of burgers, however, service does increase the cost but so does the
quality of the meat used and the “gourmet” or “fast food” image of the seller.
The best value for gasoline is determined more by location than price, with gas stations
that are “away” form busy centers normally charging less. For MP3 players discount retailers
offer the best value. For coffee the lower the image of the retailer or the less well-known the
seller the less costly the coffee. With water the cost depends on location – in an airport,
restaurant, or drugstores water is more expensive than in a supermarket or Costco. Levi’s are
fairly evenly prices in stores, the web, or from the manufacturer. Computers are often cheaper
from the seller’s website, especially is one can easily get “deals” or “online specials,” but they
are advertised as being available more cheaply at discount retailers than at electronics stores.