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RUNNING HEAD: PHASE 5 DISCUSSION BOARD KENNETH C HOLMES MKTG630-1502B-03 PROFESSOR GENE TOPPER JUNE 21, 2015 GAUGING SUCCESS AND ADDRESSING ISSUES Introduction: MM is now in the final phase of “THE HIPSTER”. All aspects from design to distribution have been addressed, and it is time to determine how MM will gauge the success of the new smartphone, establish contingency plans, and provide encouraging words to help Michelle Dietrich feel comfortable the plan will work. This document addresses these issues and will hopefully ease any tension regarding the final plan. Gauging success: As with any project, there must be metrics in place to determine the level of success. The metrics used to gauge THE HIPSTER’s level of success will include: MM’s sales. Based on their current sales level of $2.75 billion, their sales goal is to achieve $5.5 billion. This number is based on the sales of the previous line, and 12 million of “THE HIPSTER” sold at retail for $229 with contract, and is achievable since the smartphone is potentially appealing to several demographics; MM’s market share percentage. Based on their current market share of 5 percent, their goal is to achieve a 10 percent market share, with any percentage over 10 a plus; MM’s customer base. Based on their current customer base of 12 million, their goal is to achieve a customer base of 24 million. This number should be achievable since the target markets are pre-teens, teenagers and their parents, is potentially be appealing to consumers 20 to 24 years old, and only estimates purchases from five percent of the target demographic; and lastly, MM’s customer awareness. Based on their current customer awareness of five percent, the goal is to achieve customer awareness of 25 percent. The mission is to build curiosity and excitement about MM’s next big launch, and with extensive advertising and distribution this should be achievable (Pearson Education Inc. , 2015). Contingency plans: All well planned marketing strategies require contingency plans to adjust the 4 P’s (Product, Price, Promotion and Place), and address shortcomings in set goals, in the event things do not go as planned the contingencies include: For product configuration, if design and/or technology are an issue, MM will provide the enhancements and distribute the changes as “THE HIPSTER 2”. If color choices are an issue, MM will add the additional desired colors to the selection in a prompt and timely manner, and ensure quick shipment to our contracted retailers; For price configuration, the price is set based on its 100 percent environmentally approach, and is compatible to similar smartphones on the market. In this case a price reduction will give the consumer the impression it is of low quality, or MM is desperate, neither of which are true. To counter concerns, MM will reinforce the quality, durability, and environmentally friendly construction. MM will also run seasonal and holiday promotions to invigorate sales; For promotion configuration, MM is using a combination of media including MM’s own website, contract retailers websites, social media sites, and advertising banners, as well as radio, magazine, newspaper, and billboard advertising. Television advertising will be applied if the budget allows. If there is an issue with advertising effectiveness, MM will determine where advertising is strongest and maintain or increase the use of that media, and reduce or eliminate the least effective media. For example, if billboards are proving ineffective, but magazine advertising is strong, MM will eliminate billboard advertising and maintain or increase magazine advertising; and lastly, for place configuration MM is using a combination of MM’s own website, contracted retailers websites, and well establish retailers including: Best Buy, Walmart, Target, Sam’s Club, Verizon stores, T-Mobile stores, AT&T stores, Sprint stores, and Metro PCS stores. If MM’s website is underperforming, MM will increase advertising to the website, which will increase traffic to the contracted retailer stores, since internet advertising is far more affordable. If a contracted retailer is underperforming, MM will determine the reasons why, then educate that retailer about MM’s product and mission, and ensure all necessary advertising and promotional material are provided. If education and promotional materials are not the issue, then MM will reduce that retailer’s inventory, and increase the shipments to retailers that are performing properly (Pearson Education Inc., 2015). Confidence coaching: To help Michelle Dietrich feel more comfortable with the marketing plan the following suggestions should provide her the necessary confidence in the program: First, every CEO must understand that introducing a new product requires ambition, courage, and the ability to take on risk. There is no doubt Michelle has these qualities or she would have never achieved her current level of success. The most likely scenario will be that MM employees will consider her a hero for raising MM to the next level of competition, and achieving what most cellular manufactures are not completely addressing, completely sustainable product and production; Next, for MM to design a new line of cellphones to compete in the current cellular landscape requires the same risk Michelle took when starting the company. The difference now is the new line will provide MM the ability to compete with larger competition, and will only improve MM’s consumer perception, and increase MM’s brand awareness as a producer of quality, durable, and environmentally sustainable cellphones and accessories; and lastly, the new cellphone and packaging being manufactured from 100 percent recycled, alternative and sustainable materials, and produced in the U.S. represents the start of a line of cellular products that no other company is undertaking. This is a step into the future to be proud of, raises the bar for cellular product manufacturing, and creates the benchmark for all other cellphone manufacturers to follow. REFERENCES Pearson Education Inc. . (2015, May 30). Live Chat 4. Retrieved from www.ctuonline.edu/5.30MKTG630_03_215_6_3_0_2 Pearson Education Inc. (2015, may 23). Live Chat 2. Retrieved from www.ctuonline.edu/5.23MKTG_630_03_215_6_3_0_1