1. Marketing Research : A new product strategy will ultimately need to be tested through focus groups, phone surveys and beta tests. Focus groups are sessions where company managers observe consumers through a one-way mirror. A moderator or interviewer will ask the consumers questions related to the company’s product concept, including their likes, dislikes and suggestions for the product. This information is usually evaluated later to help tweak the product concept. After focus groups, companies use phone surveys to obtain a more reliable sample about the market’s reaction to the product. 2. Product Positioning: Product positioning is a “best practice” strategy used for both new and existing products. Small companies typically use a grid when developing a product positioning matrix.
The objective of product positioning is to determine which segment of the market to place a product. Companies often use two important product variables in a product positioning matrix. For hot cereal, these variables may include “price” and “time to cook.” The product price can be low or high, and the time to cook the cereal can be slow or quick. Consequently, segments for hot cereal may be low price/quick to cook, low price/slow to cook, high price/quick to cook or high price/slow to cook. A small company will usually plot its existing products as well as competitive products within the various segments. The segment with the least amount of plotting points may indicate an opportunity for the company, as that particular segment is under-served.
Place of Distribution Strategies
Depending on the type of product being distributed there are three common distribution strategies available: 1. Intensive distribution: Used commonly to distribute low priced or impulse purchase products eg chocolates, soft drinks. 2. Exclusive distribution: Involves limiting distribution to a single outlet. The product is usually highly priced, and requires the intermediary to place much detail in its sell. An example of would be the sale of vehicles through exclusive dealers. 3. Selective Distribution: A small number of retail outlets are chosen to distribute the product. Selective distribution is common with products such as computers, televisions household appliances, where consumers are willing to shop around and where manufacturers want a large geographical spread.
1. Penetration pricing: Here the organization sets a low price to increase sales and market share. Once market share has been captured the firm may well then increase their price. A television satellite company sets a low price to get subscribers then increases the price as their customer base increases. 2. Skimming pricing: The organization sets an initial high price and then slowly lowers the price to make the product available to a wider market. The objective is to skim profits of the market layer by layer. A games console company reduces the price of their console over 5 years, charging a premium at launch and lowest price near the end of its life cycle. 3. Competition pricing: Setting a price in comparison with competitors. Really a firm has three options and these are to price lower, price the same or price higher. Some firms offer a price matching service to match what their competitors are offering.
1. Public relations: Involves developing positive relationships with the organization media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention. 2. Internet Marketing: Promoting and selling your services online using various forms of online marketing techniques such as banner advertisements, videos or social media. 3. Sponsorship: Where you pay an organization to use your brand or logo. This organization usually has a high profile so that you know that your brand will be seen by a large audience. Most common use of sponsorship is with sporting events. The 2012 Olympics being held in London is being sponsored by a number of organizations such as Mcdonalds and Coca-Cola as the event will attract a worldwide audience that will run into hundreds of millions.
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Topic: Marketing Mixmarketing Mix
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