Introduction: Targets and Best Buy Open the Hunting Season
It goes without saying that selling a product without a decent promotion strategy is practically impossible. It is only a specific technique that will help a product become recognized and be quite popular. Analyzing some of the pictures of products, one can possibly define the strategies used and estimate the success of the latter.
The Pictures Classification: Consumer Promotion Techniques in Action
Sampling: everything is free
Offering free samples is rather popular practice. In the analyzed pictures, EverCreme (“FREE”) is offered as a free sample.
Couponing: get a special discount
Another smart way to boost sales, couponing is used by Listerine Ultraclean (“Save 15% now!”) with the line on the package saying “Detach here for instant saving at checkout”.
Premiums: only here and now
Premiums are quite a peculiar means to sell more goods for what might seem to the clients as ridiculous price. A striking example of such strategy is Sony (“99.99 (Reg. $119.99)”).
Contests: win a T-shirt
Rather simple, yet surprisingly efficient, the given strategy creates the impression of “free lunch,” yet with no obvious traps. The labels using this tactics are: Bud Light (“Win team gear, tickets, Super Bowl trips”) and Kellogg’s (“Win $200 in grocery cash daily”).
Bonus packs: take two for one
Quite frequently used., the idea of selling two or more packages of certain goods is obvious in the pictures with Neutrogena (“Twin pack 25% value”), Bounty Paper towels (“33% more sheets”), Gatorade (“When you purchase any two (2) Gatorade”, “Or purchase the bottle for $5.99”), Seagrams (“Buy tow to get one free”), Sunkist (“2/$7.00”), and Nicki Minaj’s album (“Contains Pink Friday Roman Reloaded Deluxe CD & T-shirt”).
Price-off: when labeling seems right
Sales are definitely the most efficient way to get the customers’ attention, and they are efficiently used by the following brands: SONY (“Save $100” for a NexP3 camera), Clearance (“50% off”), Slazenger (“Free!!! Dozen golf balls with purchase of one shirt or jacket”), and Open Box (“Your final price $518.99. Your savings $681.00”).
However, there are various methods of trade promotion. Taking a closer look at the pictures, one can specify three types of trade promotion.
Pop displays: getting the message across
Among the suggested examples of advertisements, the following ones can be considered as pop displays: the assorted range of Fruit Pies (Fruit Pie with strawberry flavor, Fruit Pie with cherry flavor, Pudding Pie, etc.) and the advertisement of Listerine Ultraclean with a price-off label.
Dealer loader: thank you for buying our products
As for dealer loader examples, one can see that the most striking example of the given strategy is Nicki Minaj’s album with a T-shirt as a bonus.
Special display: bread and circuses!
The last, but definitely to the least, special display offers a pool of opportunities. In the suggested pictures, the most graphic examples of a special display are the fizzy drinks displays, with its colors riot and the display with amplifiers, elegant and shaped in an unusual way.
Concerning the Techniques and Tactics: Embracing All Possible Ideas
It is also possible to split the pictures according to the tactics which they use in promoting their goods.
Cross-section of retailers: the acceptable techniques and tactics
From the retailers’ perspective, offering customers discounts and suggesting them two or more objects for the price of one must be the most appropriate approaches.
Product categories and the plausible technique and tactics
Considering the product categories, it is clear that that these products must be marketed in a more efficient way. Providing dealer loaders and special displays must be the strategy that is bound to boost the clients’ interest.
Determining the Essential Elements
Finally, the key objectives of the advertisers must be analyzed.
More customers!
It is obvious that in the suggested examples, one of the key goals of retailers is to attract more customers and buy their goods. It must be admitted that the used techniques are supposed to work efficiently.
Getting rid of last-week goods
It is also worth mentioning that the retailers seem to have enough of goods which have not been sold on time. Offering the given products for half the price and offering “two in one” seems legitimate enough.
Good but expensive
Another important goal of retailers is to make the customers buy more expensive products. An efficient method for a quick cash-in, sales and price reductions can prove efficient for a certain time, yet for a longer period, one has to come up with more inspiring ideas.
Conclusion: Everything One Needs to Know about Promotion Efficiency
Thus, it is clear that, with a proper strategy, one can make the product more popular and increase the selling rates. However, it is worth keeping in mind that trade promotion must be customer-oriented. Once all the requirements are met, the success is guaranteed.
The following essay is the analysis of Porsche Dubai promotion strategy. The study contains suggestions on how the company may improve its integrated marketing communication program in order to increase its sales.
The integrated marketing communication is a marketing strategy that incorporates all the aspects of marketing with an aim of increasing the brand visibility and sales. Market trend changes in different marketing strategies incorporated all together are crucial to ensure that the company promotes its products to boost its sales’ volume.
The Analysis
Porsche Dubai distributorship belongs to Al Nabooda Automobiles LLC that also owns the distributorship of other luxury cars, such as Audi and Lamborghini. The German based manufacturers of Porsche consider Dubai as one of the best markets for luxury cars due to its high population with high disposable income. The company, therefore, has its own approach to market Porsche vehicles in Dubai (Alnoor 6).
After analyzing the marketing mix of the company communication strategies in Dubai, the following are the results brought out based on the work done by the company.
It indicates that the organization’s results are achieved from the activities done in the company, which are intended to promote the brand and create a positive image (Alnoor 6). In marketing Porsche in Dubai, the product as part of the marketing mix is perfectly designed to satisfy all the members of the society. It is a luxury sports car with high speed and efficiency levels (Kerry 107).
Due to the good infrastructure-allowing racing of cars, the vehicle is particularly developed to suit Dubai with its desert terrain. Due to the high number of the millionaires in Dubai, especially the nationals, there is a high demand for the sports and luxury cars as they portray prestige.
The fact that one has to wait for a year after ordering the car indicates the scarcity of the car in the market which increases its value as the laws of demands and supply dictate. The design and luxurious image of the car are great marketing tools for the company (Strokes 65).
The other major marketing mix tool applied by the Porsche Dubai is that of place. The company distributorship is located in Sheikh Zayed road, Dubai. The attractive showroom covers an area of nine thousand square feet, and offers a real customer experience to its clients by displaying different Porsche models.
The financial section division has its own location where customers can make withdrawals and deposits in case they want to buy the automobile. There is a customer service and marketing departments where the customers may enquire and seek for clarifications (Khalifa 8).
Concerning price as a marketing mix tool used by the company, the price of the luxury cars is very high as they are designed for the high-end market. Porsche is one of the most expensive vehicles; this makes it inaccessible to many people, but it increases its demands among luxury lovers and those seeking for prestige to reflect their high status (Khalifa 8).
The promotion aspect of the marketing mix of Porsche is one of the most effective and the most used tool of marketing by the company. The company has various promotional activities intended to increase the product awareness as well as brand visibility. Some of these promotional activities include the Porsche World Road show that is intended to bring together Porsche lovers.
The road show is an event where the product’s fans and the potential buyers are given an opportunity to test the luxury cars. At the same time, they interact with the product engineers and experts who demonstrate ways of utilizing the car to the maximum.
Another promotional strategy of the company is to attract a traditional sponsor of the Dubai Tennis League, which is held every year. The championship offers the company to market its products to the young rich people who are the potential buyers. The enthusiasm and the atmosphere generated by the Porsche popularize the car among the young people. The sponsorship of the event assists in creating brand awareness and brand visibility (Khalifa 7).
As a part of the Porsche promotions, the company sponsors Porsche GTS Cup, which is a racing cup where the Porsche enthusiasts and owners compete among themselves in sporting races. The event helps gain customer loyalty and increases the positive image of the brand. The race aids to place the product as one of the best racing and sports car of choice in Dubai (Alnoor 4).
Other than this, the company engages in promoting Porsche through extended warranty offers to the owners of the vehicle. The company has one of the longest car warranty policies of three years that is renewable.
This makes the product reliable, and the customers are less worried about the car malfunctioning due to the long warranty. Unlike other dealers who offer one-year warranty, the warranty assures buyers of a better quality of service once the vehicle gets a problem. The warranty is also renewable after the three years if the customer still owns the vehicle (Khalifa 7).
The long warranty period makes the Porsche dealership in Dubai have a long-term relationship with the customers, thereby enhancing customer’s loyalty. This explains why the company’s dealership is the most successful in terms of sale compared to any other Porsche dealership across the world.
The strong connection between the customer and the manufacturer has led to the creation of PORSCHE Club where the owners of the car enjoy special treatment by the company in terms of repair and export of spare parts. The company also hosts dinners for the cars owners and provides them with an opportunity to share their experiences. This ensures promotion of the brand and customer loyalty (Khalifa 6).
As part of its sales program, the company has different designs of Porsche sports car, thereby giving the owners an opportunity to harness and enjoy various designs of the product that will meet their needs. This also serves as an up selling sales strategy of the company where the company offers new designs to the existing customers.
The company is a major sponsor of the Dubai golf championships. Golf being a luxury sport attracts the attention of the majority of people with disposable income. Sponsoring this event creates appositive brand image for the target market in the country. The event also offers an opportunity for the company to display its product to the public and position it as a high-end luxury product (Khalifa 6).
The marketing strategies of the dealership are excellent though the recent global financial crises made a large number of people adjust their budgets to cope with the recession. This affected the performance of the company in Dubai like in other parts of the world. This calls for the company to strategize its marketing mix to handle the global crises. The integrated marketing communication will certainly suit the company even after the recession (Strokes 19).
Anther reason why the company is in need of the integrated marketing communication is due to the entry of other luxury models in the Dubai market. Due to the high number of people living in Dubai with high disposable income, many companies dealing with luxury cars have entered the Dubai market of the luxury cars making it more competitive than ever.
The company has to look for a comprehensive marketing strategy to ensure that the high demand of the product experienced previously does not subside. Competing brands are the Volkswagen, Rolls Royce, Lamborghini, Audi, and Mercedes s- Class and Bentley (Khalifa 9).
The changing demographics of Dubai indicate change in the market trends. In the past, only the nationals would buy the luxury vehicles. However, nowadays, due to the increased and diversified economy, even the expatriate workers have high disposable income and become some of the new buyers of the luxury vehicles.
Other than the oil industry, the positioning of Dubai as a major international market has enabled the expatriates to have high income. The company must decide how to reach out to these buyers. This spells out why integrated marketing communication is imperative for the company.
Considering the fact that the process of manufacturing the vehicles takes one year after the customer has made an order, there is need for the company to have an integrated marketing communication system to ensure that the potential buyers are not discouraged by the long waiting and do not buy cars from other dealerships. The integrated marketing will ensure that the customers are attended to it an appropriate manner.
With the increased competition, the company must look for new ways of maintaining customer loyalty as the new entrants in the market may gain the customers over the existing brands. The integrated marketing will suit the company’s need to maintain the existing customers through integrated marketing communication systems (Khalifa 6).
The following part of the essay will deal with the integrated marketing communication strategies necessary to ensure that the company succeeds and attains its objective of selling 300 vehicles every month by the year 2018. This can only be achieved when there are proper marketing mechanisms intended to reach out to the emerging market. The strategy must incorporate loyalty programs to satisfy the existing and forthcoming customers, which is very necessary (Khalifa 7).
The integrated marketing communication is a radical marketing approach which is imperative for the company involved to ensure that the senior managers participate in the plan. In case of Porsche, some of the dealerships managers need to participate in the integrated marketing as without their input, the marketing efforts may experience challenges. The support of integrated communication program by all managers is crucial as it enhances cooperation among all the departments involved in the marketing process (Khalifa 6).
Another important aspect of integrated marketing communication is that the company must have proper internal communication mechanism aimed at ensuring that the departments involved in marketing activity participate in the work.
This is important as it enables the company to move ahead in marketing campaign. The internal communication places the company in a situation where the market moves ahead and graduates to the necessary authorities. The next important aspect of the business is to ensure the relevance of the brand (Fill 23).
For the integrated marketing communication to be effective in Porsche Dubai, all the departments need to work together to ensure that there is integrated marketing. This is where the company marketing aspects come together with the aim of creating a common front. The common front implies similarity of logos, colors, and typefaces associated with the brand.
This is especially important for Porsche brand as the dealership in Dubai also owns dealership for other types of vehicles. Differentiating the vehicles through similar colors and logos, even if their design is different, is imperative (Fill 28).
The other major factor in the marketing strategy is to prepare an integrated marketing communication budget. The budget helps in determining the amount of resources needed in the integrated marketing communication. Determining the resources enables the department to focus on cost effective means of marketing, while achieving the best possible results.
The integrated budget has to take care of advertising, public relations and promotional activities intended to promote the brand. Integrated marketing requires many resources due to the complexity and integration of all marketing activities into one front (Clow 17).
For the integrated marketing communication for Porsche Dubai to be effective, the existing customers must be a part of it. Integrated marketing focuses on data and trends in the market as the satisfied customers have a lot to tell about the brand, and their feedback is very important. Including them in the marketing strategy is important as their testimonials are significant in enhancing the brand visibility and advertising the company brand all over the world (Clow 19).
Having put all the mechanisms that support the integrated marketing communication mechanism in place, it is important to formulate better strategies than those previously implemented to reach out to the consumers. Integrated marketing communication is appropriate when it is used to market Porsche in Dubai.
The first aspect, when formulating the marketing strategy, is to carry out a research on the market. The research is critical in integrated marketing communication as it provides an insight into the consumer behaviors. It also helps identify the target market of the product without which the work may not be achieved. Identifying the target market is necessary as it ensures that the strategies are formulated with a certain aim of reaching out to the right people.
The target market of Porsche is the high-end market with high levels of disposable income. Most of the potential customers earn income and are willing and able to purchase the products at the market price. As indicated earlier, the increased number of the people with disposable income in Dubai calls for the integrated marketing to reach out to all of them. The study will explore the behaviors, tastes as well as preferences of the people with high disposable income.
After conducting the market research, the company must use the information derived from it to analyze the behaviors of the target market and look for the ways of the target marketing. The target marketing is a strategy where the messages sent out are not meant for all and sundry but for the people with high disposable income.
From the research, information, such as the kind of magazines the people in the target market read, the sports they participate in and the television channels they watch, is very important. This is because in advertising, choosing the appropriate channel of communication to reach out to the target group will be of great importance.
The customers will be persuaded to purchase the products in order to meet their needs. Identifying the target group behaviors helps in formulating the events and sponsorships that will expose Porsche brand to the potential buyers (Clow 48).
As part of integrated marketing communication, strategy of the company must ensure that it is visible to the growing online community (Pickton 32). Use of websites and Facebook as part of marketing is very important as it helps reach out to the adherents and fans of the model. It also provides a good opportunity for the company to market its products as well as predict the target market (Clow 37).
Integrated marketing communication must also take into consideration the need of the company to work together with the manufacturing department. According to the Porsche selling strategy, the customers wait for a one year period for the delivery of the car model.
With the increased competition, the company manufacturers need to increase the elasticity of demand so that it may handle the increasing orders for the cars. Failure to reduce the waiting period may act as a deterrent to the marketing activities as an increase in the number of vehicles ordered may result in an increased period of waiting (Clow 76).
The sponsorships are also an important part of integrated marketing communication because other than offering brand visibility, the sponsorship activities expose the company brand to the public and target group of people.
Attracting the Porsche sponsorship of Dubai golf tournament is an important marketing strategy, considering the fact that golf is a luxurious sport, and its participants may have interest in luxurious cars. Sponsorship of any event, which attracts participation, and attention of people with high disposable income are significant for a company (Kerry 7).
Showroom marketing is another important integrated marketing communication strategy. The people who visit the showroom are considered as the potential buyers. The attractiveness of the show room is imperative as it needs to have good communication mechanisms to portray or communicate with the buyers (Pickton 29). The visitors are looking for more information, thus the availability of brochures as well as manuals to distribute among the visitors is of high importance.
The showroom also provides an opportunity for the company to promote its events, such as the annual road show where the interested buyers get an opportunity to test the cars. It is also an opportunity for the attendants to address the concerns of the potential buyers, such as the price and the warranty issues (Kerry 21).
The Porsche members club is an important aspect of integrated marketing communication as it provides an avenue for the company to maintain customer loyalty. Sponsoring dinners and events for the members as well as renewing warranty assist the company not only to have the buyers but also sell the new models to the existing ones (Kerry 26).
Conclusion
Using the integrated marketing is important for any company as it ensures an appropriate time for the brand to address its marketing strategies as well as increase its sales. The integrated marketing communication enables the company to reach out to its potential customers through cost effective methods. It also brings together all the departments as all the aspects of the company play their role in marketing and communicating with the buyers.
Works Cited
Alnoor, Said. “Porsche Dubai Road Show A Success.” Dubai Luxury. 7(2008): 6-7. Print
Clow, Kenneth. Integrated Advertising For Luxury Items. New Jersey: Prentice Hall. 2003. Print
The following essay is the analysis of Porsche Dubai promotion strategy. The study contains suggestions on how the company may improve its integrated marketing communication program in order to increase its sales.
The integrated marketing communication is a marketing strategy that incorporates all the aspects of marketing with an aim of increasing the brand visibility and sales. Market trend changes in different marketing strategies incorporated all together are crucial to ensure that the company promotes its products to boost its sales’ volume.
The Analysis
Porsche Dubai distributorship belongs to Al Nabooda Automobiles LLC that also owns the distributorship of other luxury cars, such as Audi and Lamborghini. The German based manufacturers of Porsche consider Dubai as one of the best markets for luxury cars due to its high population with high disposable income. The company, therefore, has its own approach to market Porsche vehicles in Dubai (Alnoor 6).
After analyzing the marketing mix of the company communication strategies in Dubai, the following are the results brought out based on the work done by the company.
It indicates that the organization’s results are achieved from the activities done in the company, which are intended to promote the brand and create a positive image (Alnoor 6). In marketing Porsche in Dubai, the product as part of the marketing mix is perfectly designed to satisfy all the members of the society. It is a luxury sports car with high speed and efficiency levels (Kerry 107).
Due to the good infrastructure-allowing racing of cars, the vehicle is particularly developed to suit Dubai with its desert terrain. Due to the high number of the millionaires in Dubai, especially the nationals, there is a high demand for the sports and luxury cars as they portray prestige.
The fact that one has to wait for a year after ordering the car indicates the scarcity of the car in the market which increases its value as the laws of demands and supply dictate. The design and luxurious image of the car are great marketing tools for the company (Strokes 65).
The other major marketing mix tool applied by the Porsche Dubai is that of place. The company distributorship is located in Sheikh Zayed road, Dubai. The attractive showroom covers an area of nine thousand square feet, and offers a real customer experience to its clients by displaying different Porsche models.
The financial section division has its own location where customers can make withdrawals and deposits in case they want to buy the automobile. There is a customer service and marketing departments where the customers may enquire and seek for clarifications (Khalifa 8).
Concerning price as a marketing mix tool used by the company, the price of the luxury cars is very high as they are designed for the high-end market. Porsche is one of the most expensive vehicles; this makes it inaccessible to many people, but it increases its demands among luxury lovers and those seeking for prestige to reflect their high status (Khalifa 8).
The promotion aspect of the marketing mix of Porsche is one of the most effective and the most used tool of marketing by the company. The company has various promotional activities intended to increase the product awareness as well as brand visibility. Some of these promotional activities include the Porsche World Road show that is intended to bring together Porsche lovers.
The road show is an event where the product’s fans and the potential buyers are given an opportunity to test the luxury cars. At the same time, they interact with the product engineers and experts who demonstrate ways of utilizing the car to the maximum.
Another promotional strategy of the company is to attract a traditional sponsor of the Dubai Tennis League, which is held every year. The championship offers the company to market its products to the young rich people who are the potential buyers. The enthusiasm and the atmosphere generated by the Porsche popularize the car among the young people. The sponsorship of the event assists in creating brand awareness and brand visibility (Khalifa 7).
As a part of the Porsche promotions, the company sponsors Porsche GTS Cup, which is a racing cup where the Porsche enthusiasts and owners compete among themselves in sporting races. The event helps gain customer loyalty and increases the positive image of the brand. The race aids to place the product as one of the best racing and sports car of choice in Dubai (Alnoor 4).
Other than this, the company engages in promoting Porsche through extended warranty offers to the owners of the vehicle. The company has one of the longest car warranty policies of three years that is renewable.
This makes the product reliable, and the customers are less worried about the car malfunctioning due to the long warranty. Unlike other dealers who offer one-year warranty, the warranty assures buyers of a better quality of service once the vehicle gets a problem. The warranty is also renewable after the three years if the customer still owns the vehicle (Khalifa 7).
The long warranty period makes the Porsche dealership in Dubai have a long-term relationship with the customers, thereby enhancing customer’s loyalty. This explains why the company’s dealership is the most successful in terms of sale compared to any other Porsche dealership across the world.
The strong connection between the customer and the manufacturer has led to the creation of PORSCHE Club where the owners of the car enjoy special treatment by the company in terms of repair and export of spare parts. The company also hosts dinners for the cars owners and provides them with an opportunity to share their experiences. This ensures promotion of the brand and customer loyalty (Khalifa 6).
As part of its sales program, the company has different designs of Porsche sports car, thereby giving the owners an opportunity to harness and enjoy various designs of the product that will meet their needs. This also serves as an up selling sales strategy of the company where the company offers new designs to the existing customers.
The company is a major sponsor of the Dubai golf championships. Golf being a luxury sport attracts the attention of the majority of people with disposable income. Sponsoring this event creates appositive brand image for the target market in the country. The event also offers an opportunity for the company to display its product to the public and position it as a high-end luxury product (Khalifa 6).
The marketing strategies of the dealership are excellent though the recent global financial crises made a large number of people adjust their budgets to cope with the recession. This affected the performance of the company in Dubai like in other parts of the world. This calls for the company to strategize its marketing mix to handle the global crises. The integrated marketing communication will certainly suit the company even after the recession (Strokes 19).
Anther reason why the company is in need of the integrated marketing communication is due to the entry of other luxury models in the Dubai market. Due to the high number of people living in Dubai with high disposable income, many companies dealing with luxury cars have entered the Dubai market of the luxury cars making it more competitive than ever.
The company has to look for a comprehensive marketing strategy to ensure that the high demand of the product experienced previously does not subside. Competing brands are the Volkswagen, Rolls Royce, Lamborghini, Audi, and Mercedes s- Class and Bentley (Khalifa 9).
The changing demographics of Dubai indicate change in the market trends. In the past, only the nationals would buy the luxury vehicles. However, nowadays, due to the increased and diversified economy, even the expatriate workers have high disposable income and become some of the new buyers of the luxury vehicles.
Other than the oil industry, the positioning of Dubai as a major international market has enabled the expatriates to have high income. The company must decide how to reach out to these buyers. This spells out why integrated marketing communication is imperative for the company.
Considering the fact that the process of manufacturing the vehicles takes one year after the customer has made an order, there is need for the company to have an integrated marketing communication system to ensure that the potential buyers are not discouraged by the long waiting and do not buy cars from other dealerships. The integrated marketing will ensure that the customers are attended to it an appropriate manner.
With the increased competition, the company must look for new ways of maintaining customer loyalty as the new entrants in the market may gain the customers over the existing brands. The integrated marketing will suit the company’s need to maintain the existing customers through integrated marketing communication systems (Khalifa 6).
The following part of the essay will deal with the integrated marketing communication strategies necessary to ensure that the company succeeds and attains its objective of selling 300 vehicles every month by the year 2018. This can only be achieved when there are proper marketing mechanisms intended to reach out to the emerging market. The strategy must incorporate loyalty programs to satisfy the existing and forthcoming customers, which is very necessary (Khalifa 7).
The integrated marketing communication is a radical marketing approach which is imperative for the company involved to ensure that the senior managers participate in the plan. In case of Porsche, some of the dealerships managers need to participate in the integrated marketing as without their input, the marketing efforts may experience challenges. The support of integrated communication program by all managers is crucial as it enhances cooperation among all the departments involved in the marketing process (Khalifa 6).
Another important aspect of integrated marketing communication is that the company must have proper internal communication mechanism aimed at ensuring that the departments involved in marketing activity participate in the work.
This is important as it enables the company to move ahead in marketing campaign. The internal communication places the company in a situation where the market moves ahead and graduates to the necessary authorities. The next important aspect of the business is to ensure the relevance of the brand (Fill 23).
For the integrated marketing communication to be effective in Porsche Dubai, all the departments need to work together to ensure that there is integrated marketing. This is where the company marketing aspects come together with the aim of creating a common front. The common front implies similarity of logos, colors, and typefaces associated with the brand.
This is especially important for Porsche brand as the dealership in Dubai also owns dealership for other types of vehicles. Differentiating the vehicles through similar colors and logos, even if their design is different, is imperative (Fill 28).
The other major factor in the marketing strategy is to prepare an integrated marketing communication budget. The budget helps in determining the amount of resources needed in the integrated marketing communication. Determining the resources enables the department to focus on cost effective means of marketing, while achieving the best possible results.
The integrated budget has to take care of advertising, public relations and promotional activities intended to promote the brand. Integrated marketing requires many resources due to the complexity and integration of all marketing activities into one front (Clow 17).
For the integrated marketing communication for Porsche Dubai to be effective, the existing customers must be a part of it. Integrated marketing focuses on data and trends in the market as the satisfied customers have a lot to tell about the brand, and their feedback is very important. Including them in the marketing strategy is important as their testimonials are significant in enhancing the brand visibility and advertising the company brand all over the world (Clow 19).
Having put all the mechanisms that support the integrated marketing communication mechanism in place, it is important to formulate better strategies than those previously implemented to reach out to the consumers. Integrated marketing communication is appropriate when it is used to market Porsche in Dubai.
The first aspect, when formulating the marketing strategy, is to carry out a research on the market. The research is critical in integrated marketing communication as it provides an insight into the consumer behaviors. It also helps identify the target market of the product without which the work may not be achieved. Identifying the target market is necessary as it ensures that the strategies are formulated with a certain aim of reaching out to the right people.
The target market of Porsche is the high-end market with high levels of disposable income. Most of the potential customers earn income and are willing and able to purchase the products at the market price. As indicated earlier, the increased number of the people with disposable income in Dubai calls for the integrated marketing to reach out to all of them. The study will explore the behaviors, tastes as well as preferences of the people with high disposable income.
After conducting the market research, the company must use the information derived from it to analyze the behaviors of the target market and look for the ways of the target marketing. The target marketing is a strategy where the messages sent out are not meant for all and sundry but for the people with high disposable income.
From the research, information, such as the kind of magazines the people in the target market read, the sports they participate in and the television channels they watch, is very important. This is because in advertising, choosing the appropriate channel of communication to reach out to the target group will be of great importance.
The customers will be persuaded to purchase the products in order to meet their needs. Identifying the target group behaviors helps in formulating the events and sponsorships that will expose Porsche brand to the potential buyers (Clow 48).
As part of integrated marketing communication, strategy of the company must ensure that it is visible to the growing online community (Pickton 32). Use of websites and Facebook as part of marketing is very important as it helps reach out to the adherents and fans of the model. It also provides a good opportunity for the company to market its products as well as predict the target market (Clow 37).
Integrated marketing communication must also take into consideration the need of the company to work together with the manufacturing department. According to the Porsche selling strategy, the customers wait for a one year period for the delivery of the car model.
With the increased competition, the company manufacturers need to increase the elasticity of demand so that it may handle the increasing orders for the cars. Failure to reduce the waiting period may act as a deterrent to the marketing activities as an increase in the number of vehicles ordered may result in an increased period of waiting (Clow 76).
The sponsorships are also an important part of integrated marketing communication because other than offering brand visibility, the sponsorship activities expose the company brand to the public and target group of people.
Attracting the Porsche sponsorship of Dubai golf tournament is an important marketing strategy, considering the fact that golf is a luxurious sport, and its participants may have interest in luxurious cars. Sponsorship of any event, which attracts participation, and attention of people with high disposable income are significant for a company (Kerry 7).
Showroom marketing is another important integrated marketing communication strategy. The people who visit the showroom are considered as the potential buyers. The attractiveness of the show room is imperative as it needs to have good communication mechanisms to portray or communicate with the buyers (Pickton 29). The visitors are looking for more information, thus the availability of brochures as well as manuals to distribute among the visitors is of high importance.
The showroom also provides an opportunity for the company to promote its events, such as the annual road show where the interested buyers get an opportunity to test the cars. It is also an opportunity for the attendants to address the concerns of the potential buyers, such as the price and the warranty issues (Kerry 21).
The Porsche members club is an important aspect of integrated marketing communication as it provides an avenue for the company to maintain customer loyalty. Sponsoring dinners and events for the members as well as renewing warranty assist the company not only to have the buyers but also sell the new models to the existing ones (Kerry 26).
Conclusion
Using the integrated marketing is important for any company as it ensures an appropriate time for the brand to address its marketing strategies as well as increase its sales. The integrated marketing communication enables the company to reach out to its potential customers through cost effective methods. It also brings together all the departments as all the aspects of the company play their role in marketing and communicating with the buyers.
Works Cited
Alnoor, Said. “Porsche Dubai Road Show A Success.” Dubai Luxury. 7(2008): 6-7. Print
Clow, Kenneth. Integrated Advertising For Luxury Items. New Jersey: Prentice Hall. 2003. Print
Charles Bierbrier owns Bierbrier Brewery. Charles formed the company after he attained an MBA degree at Concordia University and after he worked at National Bank of Canada for a period of over six months.
The company performed well from the time it began its operations. Sales grew at a high rate, and no money was spent on promotion of products sold by the company (Simpkins, 2008).
Additionally, the products produced by Bierbrier Brewery became popular among the residents of Montreal. However, as 2008 approaches, the company faces different challenges.
These include determination of the appropriate distribution and promotion strategies. It has to determine the right price to set for its products and the market that it should target.
The goal of this paper is to determine the appropriate expansion, promotion and competitive strategy that Bierbrier Brewery should adopt to enable its growth in years to come.
SWOT Analysis
Bierbrier Brewery has to conduct a SWOT analysis to determine the appropriate promotion strategy. SWOT analysis entails determination of the strengths and weaknesses of a company. Additionally, it involves determination of opportunities and threats that a company faces.
Bierbrier Brewer has numerous strengths. The business has an experienced and educated manager. Charles holds a BA degree in Economics and an MBA. Furthermore, he has worked as a financial advisor and a project officer in Canada (Simpkins, 2008).
These provide him with the expertise required to manage Bierbrier Brewery. Many people in Montreal like the beer that the company sells. This is a strength that the company has.
The product received a positive reception in the market, and this enabled the company to be popular. The local character of keg sold by the company, logo and the involvement of Charles and his colleagues popularized the company.
The popularity of the company also assisted it to improve its credibility. Furthermore, individuals who had tasted the beer produced by the company recommended it to other people.
The invitations that Charles received to attend interviews are also strengths that Bierbrier Brewery has.
One weakness of Bierbrier Brewery is that the ale it produces does not have a more pronounced taste like those produced by other beer producers in Montreal (Simpkins, 2008).
Additionally, the company has few staff members. Finally, the lack of a distribution and promotion strategy is a weakness.
The existence of unexploited market provides an opportunity for the company. Microbreweries and imports share a 10% market share. Bierbrier Brewery is grouped as a microbrewery. It is noted that growth is possible in the microbrewery segment of the market.
Finally, the threat that Bierbrier Brewery faces is the possibility of competition from other microbreweries in Montreal. These microbreweries have well established brands like Ambroise, La Fin du Monde and Belle Guelle.
The Situation
The company enjoyed free publicity and promotion. As its credibility grew, word-of-mouth spread, and it managed to get clients. Moreover, wine and food specialty magazines, television stations, newspaper and radio stations featured stories about the company.
The company also operated without a promotion and distribution plan. However, the company managed to grow tremendously. The sales made grew at an increasing rate, and Charles would like to expand the production capacity of Bierbrier Brewery by 100% (Simpkins, 2008).
However, for the company’s production to be increased by 100% and achievement of return on investments to be made, the company has to ensure that sales continue to grow at double-digit rates within a timeframe that is reasonable.
Therefore, Charles has to determine the right pricing, distribution, segmentation and promotion strategy.
Various Alternatives
Currently, the pricing strategy used by Charles is in line with microbrewery products. The prices that Bierbrier Brewery charges for its products are about 15-20% higher than prices charged by mainstream brands.
Additionally, the prices are 20% less than prices charged on imported brands like Becks and Heineken. However, according to industry projections, production costs are likely to increase in 2008.
Therefore, the alternatives that Charles has are to wait until production costs increase, and then set the prices afterwards. Alternatively, he can decide to set the prices based on competitors’ prices or increase prices now.
The company does not have a distribution strategy. Presently, bars, convenience stores and restaurants distribute the company’s products. However, the company can adopt various options to use in distribution of the products.
It can target all the three forms of retail outlets, or focus on two or one. It can also target sports events, increase the variety of brands or target specific geographical areas (Simpkins, 2008).
Finally, the company does not have a promotion strategy. However, as 2008 approaches, the company can adopt various strategies to promote it and products that it produces. The strategy should enable it to increase sales volume in 2008.
The company can either adopt the use of adverts, publicity creation and use of internet, sales promotion or direct promotion strategies. Alternatively, it can decide not to market and hope that word-of-mouth method continues to popularize the firm.
Target Market
The firm does not target any market segment currently. It normally accommodates all types of clients. Bierbrier Brewery is a small firm and does not want to restrict its target market.
However, it can decide to target high-end customers, like individuals who frequent restaurants located in the wealthy Westmont neighborhood, or target the general population.
Evaluation
The projections made that production costs may increase in 2008 may not happen. Therefore, if Charles increases the prices now, he may lose many customers in 2008. This would adversely affect the company.
The use of competitors’ prices to set the prices of his products may lead to increased costs or low profits. The competitors may be efficient in their production processes. Thus, they may be able to charge low prices and still make profits.
The operation of Bierbrier Brewery without a distribution strategy is not appropriate. A distribution strategy can assist clients find the products of Bierbrier Brewery easily.
Additionally, a distribution strategy can assist the company to monitor competitors, activities and increase client base.
Furthermore, the lack of a promotion strategy limits the performance of Bierbrier Brewery. A promotion strategy can assist the company to determine clients who like the products that it produces over the products produced by competitors.
Furthermore, a promotion strategy can enable the company to understand the characteristics of the customers who like the products that it produces.
Recommendations
It is advisable for Charles not to increase the prices of the products produced by Bierbrier Brewery now. He should wait until the costs of production increases. Therefore, he should continue with the current pricing strategy.
The distribution strategy that he develops should target all the three forms of retail outlets. The products produced by the company are already popular in the three forms of retail outlets hence there is a possibility of growth.
Finally, he can adopt internet use, sales promotion and use of adverts as the promotion strategies. These strategies are cheaper than direct promotion. Direct promotion may require more staff and this would be expensive.
Conclusion
The use of the recommendations made can assist Bierbrier Brewery to increase sales. The company can complement these strategies with others like targeting sports events and increase of the variety of brands sold. These strategies can enable it to expand in 2008.
Polaroid was a quite a successful company in the 70’s and late 60’s. The company underwent a lot of changes later. These changes, characterized by mergers and acquisitions, have reduced the company to a shell in the current world. Many scholars compare Polaroid’s stellar success and superb market-leading innovations to the current Apple’s.
The then CEO of the company draws a lot of comparison to the current Apple CEO Steve Jobs. This is a reflection of just how the company enjoyed unrivalled success in its industry during its heyday. The company specialized in making photography products. These products include cameras, films and others.
The company is trying a comeback after going under. It has employed the services of renowned celebrities such as Lady Gaga to market its products. Recently, the company launched a pair of ‘cool’ glasses that can take digital photos. This intended comeback of Polaroid is subject to study of product development and the cycles that they take.
The company in itself was a product. It sold far and wide and in its home country, the United States, it was in favor of a sizeable number of consumers. That is not the case anymore. Other more innovative and successful companies in that field have sprung up. This has competition become unrivalled. Furthermore, quite a large market that the company served then has evolved to a different kind. This is in the advent of technology and changes in tastes and preferences.
Product Life Cycle Stage
In this study, the company is a product in itself. It undergoes stages that a normal product undergoes. Currently, the company is in the last stage of a product development cycle. In the times it enjoyed great success the company was in the growth and maturity stages.
Now it is in a decline stage. At this stage, there are many costs associated with a possible reentry to the market. The company has to come up with new products and rethink its strategies in the face of declining sales volume and prices (Box, 1983).
Michael Moore
The company CEO of an electronics company is faced by a challenging situation. He has to put off a possibility of laying-off workers. The only reprieve is a contract that the government is offering him. However, the contract has an unethical dimension that has got Moore thinking.
The contractors have offered to make sure the contract goes through if he gives them a 5% cash back rebate. This rebate should be stated in the contract. If he does not take the contract, he will end up laying-off workers and facing a possibility of his company going under.
This is an ethical issue in contracting. It can be labeled as corruption and fraud. In many countries, this can lead to possible blacklisting. It is a criminal offence in other countries with phenomenon jail terms.
In this particular country the need for favoritism so as to win some business advantage is common place. Moore is between a hard place and a rock. Does he go along and pay the 5% rebate or does he just do away with this golden opportunity. My advice would be that he seizes the opportunity.
This is because there will be little aftermath, if any, that will characterize the contracting. However, in the event that he ignores that contract on the basis of ethics, the aftermath will be a painful affair. This is because he will have to lay off staff since he cannot meet the costs of business.
Reference
Box, J. (1983). Extending Product Lifetime: Prospects and Opportunities. European Journal of Marketing, 17: 34–49.
Ultimate Toronto club (UTC), a not-for-profit organization, is the third largest Ultimate club in Canada based on its market share. Jason Robinson was brought into the club in 2006, and was tasked with the challenge of increasing membership into the club, and reducing member turnover rates.
A high increase in for-profit competitors in the greater Toronto region was causing a rapid drop in UTC’s market share. This case study evaluates UTC’s position in the market, and effectiveness of strategies used by the club as well as recommendations.
Problem Statement
Competition from profit making establishments is gradually eating up Toronto Ultimate Club’s market share. While the club could grow its membership by 30 percent annually, the high membership turnover rate will undermine any progress made.
Situation Analysis
Objectives
The main objectives for Ultimate Toronto club include; growing the sport of Ultimate Frisbee in Canada, providing quality ultimate leagues and programs, and developing Ultimate players and the community (exhibit 3). Another key objective forthe Ultimate Toronto club is to grow at a healthy sustainable rate, and maintaining club membership.
Background
Ultimate Toronto club is currently the third largest Ultimate club in Canada, with membership growing by an annual rate of 30 percent, but the club is experiencing a significantly high turnover rate in membership. The club is known for its competitive nature and quality services, which attract serious Ultimate players.
For-profit companies have realized the potential in the sport, and have targeted niche markets, a consequence of which has been a reduction in market share for UTC. UTC ageing membership population offers a limited growth potential for the club in terms of revenues, and Ultimate sporting activities. UTC has recognized the need for change; for it to grow, it has to be able to attract newer and younger members.
SWOT Analysis
Strengths
Toronto Ultimate club has used a blend of recreational and competitive membership programs to boost its market position, helping the not-for profit organization attain its current third ranking in the market. The club is well known for its competitive leagues, and quality Ultimate services, which might explain the healthy and sustainable 30 percent annual growth in membership.
The Frisbee leagues form loyalty within groups, which helps secure future subscription fees, and support for future missions. Toronto Ultimate club offers year round tournaments, for instance outdoor fall, spring and summer leagues, and indoors winter leagues.
This strategy forms a basis for concrete earnings throughout the year, as compared to competitors who only offer outdoor leagues in specific seasons. UTC’s website provides members with current information about the club, and could therefore be a source for consumer satisfaction.
Weaknesses
Ultimate Toronto Club has no field of its own, which subjects the club to rental expenses for access to fields for sporting activities, not to mention the uncertainty and higher rental fees brought about by competitive bidding.
The club does not have other sporting activities, other than Ultimate Frisbee, while its competitors offer other leagues such as basketball, softball, football and soccer. The club will therefore be at a disadvantage while competing with these other clubs, since they offer more service packages.
UTC is also relies too much on volunteers, who may not offer the same services as full time staff. UTC’s full time staff is limited in number, which may seem to overstretch the current team.
Ultimate Toronto club has harsh regulations, for example penalties are imposed on teams that consistently achieve low “spirit scores”. This could de-motivate members since the regulations defeat the concept of the free spirit of the game, which could help explain the high membership turnover rate.
Opportunities
A major opportunity for Ultimate Toronto club to capitalize on is the rising numbers of minorities in Toronto, as they are under-represented within UTC. Individuals of Asian descent form almost 50 percent of visible minority population, and present opportunity for growth in UTC’s membership base.
As a cultural and entertainment hub in the country, clubs such as UTC have high growth opportunities in the recreational field. UTC could also capitalize on the gaining acceptance levels for Ultimate Frisbee in Canada.
UTC has more to gain by targeting the middle income group, who form the majority proportion of Toronto’s population (exhibit 2). Toronto’s population is made up of an even age distribution (exhibit 1), and younger adults present a higher opportunity for growth.
Most young professionals live on their own, without families, and thus have more disposable income. Female leagues would also suffice in the achievement of UTC’s objectives. Ladies would be more comfortable competing among themselves. This idea would help attract more female members into the club, and increase loyalty levels.
Threats
For-profit clubs are able to gain in market share by identifying and targeting specific niches, thereby improving the reception from consumers in the market. This has resulted in a decline in Ultimate Toronto club’s growth, declining market share, and could also help explain UTC’s membership turnover rate.Increased competition will also lead to higher field rental charges due to increased bidding.
The economic downturn in 2008 affected both businesses and individuals alike. Although most countries emerged from the global recession, some individuals are still skeptical about the future. Uncertainty about the future outlook may lead to decreased household spending.
Indirect competition also poses a threat for the continuance of UTC’s operations. Numerous health and fitness centers in Toronto provide cheaper alternatives for individuals who want to keep fit, but have limited recreational time or budgets. A higher percentage of young adults are spending more of their free time indoors, leaving Ultimate clubs such as UTC with idle facilities.
Lack of quality partnerships may weigh down on the success of strategies implemented by Ultimate Toronto club. Continued decentralization of the sport will counteract the uniformity of the rules, and eventually lead to loss in appeal for the sport.
Market Analysis
UTC main target market is serious Ultimate Frisbee players, due to the competitive and quality leagues in the club. Whereas Ultimate Toronto club serves both serious and recreational members, the move to focus on this target could discourage casual players from joining the leagues. Competitors, such as Everyman Sports, have positioned themselves as the go-to place for fun, subsequently increasing their market share in the sport.
Recreational Sporting Club (RSC) has positioned itself as a one-stop sports league shop, where it provides for a wide range of sporting activities other than Ultimate Frisbee. This strategy will lead to rapid growth of RSC, since it serves various recreational interests, rather than clubs that only satisfy one need.
Ultimate Toronto club has an ageing membership group, which could make the club lose its competitive edge due to decreased individual performance levels. Competitors that target their marketing efforts towards niche markets are able to compel consumers to take up their service offerings because their specialized needs and interests have been covered (Armstrong & Kotler 2010).
The main basis for segmentation in this market would be through age distribution. Young professionals provide a feasible growth potential, given their rising income levels.
Young adults have little financial obligations, so the disposable income could go towards recreational activities such as Ultimate Frisbee. Toronto is among the most populated and wealthiest cities in Canada, with a healthy average annual income of Cdn$30,350 for its residents.
Financial Analysis
In the best case scenario (probability =30%), UTC could have 4,500 members in the short term, while in worst case scenario (probability=20%), members would be 3,000. The normal scenario is equivalent to 3800 members. Expected earnings will therefore be $250,250 (4,500*$65*0.3 + 3,800*$65*0.5 + 3,000*$65*0.2). The club will be able to brake-even if it achieves quality partnerships in excess of $250,000.
Critical Factors
Keys to Success
Assuring accessibility to the club’s services would be a quick way of increasing membership. Favorable pricing policies are likely to attract and retain members, and ward off competition. Differentiation of services at the club will increase the intrinsic value to consumers, thereby increasing levels of loyalty and lower membership turnover rates.
Effective promotion activities that communicate UTC’s value delivery and affordability will create awareness for the club’s programs and profile, increase interest in Ultimate Frisbee, hence lead to a rise in membership rates.
Key Uncertainties
It’s difficult to ascertain how competitors will react following Ultimate Toronto club’s strategic move. A reduction in subscription fees or team charge in leagues may lead to a price war, which will hinder any chances of growth due to the low liquidity resulting from decreased surpluses.
Alternatives
Options
The product change option would decrease the rigidity of the regulations, whereby the flexibility in rules may lead to customization of leagues according to prevailing circumstances or individual wants.
These changes may increase the spirit of fun in the Ultimate Frisbee, in the process leading to increased player satisfaction. Satisfied members would mean that the club will receive more loyalty, which will be evidenced in reduced turnover rates.
The rising cost of field space may have a negative effect on Ultimate Toronto club’s contribution margins, but the club charges the highest fees per team in summer leagues. UTC charges a team $800 for a spot in the summer leagues, while competitors such as Recreational Sporting Club, Everyman Sports and West Side Sports charge $539, $476 and $500 per season respectively.
An increase in prices would not be feasible since it will not help UTC achieve its growth objectives, as members would move to competitor clubs that offer better prices.
Various promotional options come up, where UTC could use mass media to create awareness about the club. Promotion via 102.1 The Edge, a popular radio service in Toronto, would reach an approximated 800,000 listeners per week.
Advertising through radio is a relatively cheaper as compared to other modes of advertising, so it will not have a large impact on the budget. The Edge is accustomed to younger listeners, who form an attractive consumer segment for UTC, and thus complement the positioning strategy.
Promotion via the Toronto Star, which was the most popular daily in Canada, would guarantee a larger audience for UTC. While The Edge may have reached 800,000 people weekly, The Toronto Star can serve an estimated 1 million people on a day to day basis, or almost 22 percent of Toronto’s population, and has standard pricing rates (exhibit 6).
CBS Outdoor Canada (CBS) was the market leader in outdoor advertising, through mediums such as posters, transit shelters and bus, subway and streetcar advertising. Advertising through CBS could be an effective way of targeting the youth market, which is categorized by individuals who have limited attention span.
Facebook, on the other hand, could be used to reach a wider population base than conventional advertising media. UTC will be in a better to choose its audience base geographically, and demographically, which is probably the best feature of the online application to advertising companies.
The bid pricing mechanism may lead to higher prices, thus cash strapped organizations will not be able to compete for the best placements. The UTC promotion team may offer direct selling, which helps in building relationships between new members and the club. (Ivey management Services, 2009)
Analysis of Alternatives
The radio and newspaper options present alternatively cheap advertising rates (exhibit 5 and 6), but may not necessarily be effective. The target market, made up of young individuals, may be impatient and thus not pay full attention to these advertisements. Another disadvantage is that there is no clear way in measuring response rate from readers or listeners.
CBS outdoor Canada has a track record of being effective and efficient in advertising placements, but its four week option is rather expensive for UTC. The proposed marketing budget is $50,000 (10 percent of $500,000), while the cheapest for week cost is $50,000, a plan that would reach 48 percent of Toronto’s population.
The high costs and low market penetration would therefore not justify CBS option over other advertising media, such as the newspaper which reaches a greater audience.
Facebook would probably be the most suitable option for UTC promotions. The option allows UTC to bid for a comfortable price (exhibit8), and offers greater control in placement expenses. UTC will be able to determine the audience based on geographical and demographic characteristics.
Furthermore, friends and families can recommend UTC related content to other people on Facebook, thereby providing free promotion services to organization. The UTC promotion team may offer benefits of direct selling, but local athletic functions where booths can be set up are rare, which may slow down UTC’s awareness campaigns. Costs for using the promotion team are not certain; hence this may deter budgeting efforts.
Recommendations
In the short term, Ultimate Toronto Club should use promotional mediums to generate awareness. By targeting a broader market base, UTC will achieve an increase in membership.
While the club is positioned to serve serious players, deregulation in league rules may promote the element of fun and freedom in the club, resulting to higher consumer satisfaction scores, and therefore a decline in the attrition rate. Prominent athletes could be contracted to endorse the club in the market.
In the long-term, UTC could offer more sporting activities, and thereby enter other markets and consequently foster the club’s growth ambitions. A field could be secured, in the process reducing expenses related to rental fees. If the grounds are large enough, then sporting activities can carry-on seamlessly. Proportions of the grounds can also be rented out to other clubs, therefore providing the club with another revenue streams.
Action Plan
Jason Robinson should first ensure an appropriate promotional tool, which could either be through Facebook, The Edge or Toronto Star, or a combination of some elements of each. Once costs are ascertained, the UTC promotion team could be sent to various sporting events to promote the club.
Value enhancement is another critical factor that management should emphasize if the club is to increase satisfaction to consumers (Brassington & Pettitt 2006).
In the future, the club can implement pricing policies that would offer discounts to loyal members, and members who enroll their friends and relatives to the club. In the third year of the strategic plan, the club can use a mixture of retained earnings and debt to finance the acquisition of new grounds.
Risk Management
The club could use key performance indicators, such as growth data and membership attrition rates to measure effectiveness of its programs. Professional publications relating to recreational clubs analyze industry data, including market shares, which could be a good basis for comparing different strategies.
Should promotional activities fail, Ultimate Toronto club could increase the budget to allow for value engineering in club activities and grounds, in the process differentiating the club from competitors. Stabilizing prices, or reducing rates, will be essential if the clubs growth rate slows down.
References
Armstrong, G. & Kotler, P. (2010). Marketing: An Introduction, 10th Ed. New York, NY: prentice Hall.
Brassington, F. & Pettitt, S. (2006). Principles of Marketing, 4th Ed. New York, NY: prentice Hall.
Ivey management Services. (2009). Case Study: The Toronto Ultimate Club. London, Ontario: Ivey Publishing.
To ensure that the rapid diagnostic product achieves success in the market, an effective marketing plan that differentiates the company in the market place should be set up elaborately. This is intended to offer the company an excellent opportunity for early success. The marketing plan incorporates key elements that would help commercialize the rapid diagnostic products effectively.
These key elements include: promotional literature and advertising material; promotional newsletter; customer training workshops; medical/scientific trade exhibitions such as, the media; domestic promotion that includes mailings and telephone contacts; specific target product mailings conducted monthly; key journal advertising; internet home page; presentation and publication of scientific papers; international distribution meetings; multimedia presentations on notebooks and desktop computers; distribution of multimedia presentation on CD; and press releases.
Promotion Literature
Advertising will be the major promotional element the company will use to penetrate the market. It will be used both to establish the rapid diagnostic product in the market and increase its sales.
Through advertising in medical and scientific journals, the market will be informed of the very existence of the product and, specifically, its pharmacological, chemical, and physical properties. Clients will be persuaded to use for the cure, prevention, or treatment of disease (Stephens, 2005).
The advertising will adhere to six specific principles; the central sales idea, uniformity of presentation, protested promotion, split second timing, overwhelming of clinicians, and advertising behind advertising.
A central idea will be developed by emphasizing the physical, the chemical or pharmacological properties of the product. It will also include its mode of administration, side effects, and contraindications. The aim will be to differentiate the product from existing competitive products, thereby offering the product uniqueness in its class (Kurtz, 2009).
Uniformity of presentation will include the proper coordination of all promotional activities, including detailing, direct mail and advertising (Kotler, 2000). The advertising material will be protested on selected practicing medical practitioners in selected localities.
This will be aimed at evaluating the product purpose and effectiveness, so that necessary alterations could be made in the final product. Split second timing of promotion will involve simultaneous distribution of the product, detailing, direct mail, and journal advertising.
The Internet Homepage
The internet would provide the most powerful medium for promoting the rapid diagnostic products to the market (Can’t, 2009). The internet has a multimedia nature combined with its capacity to deliver huge amounts of product information to users. This means that it is an effective medium for advertising and promoting products.
Through the internet, the company would not only publicise the products on the net, but also advertise the products to a global public at a fraction of the cost of traditional advertising (Paley, 2000). It is easy to update and expand through the internet. The internet would provide no real limit on how information on the product can be made available to clients.
Furthermore, the company can focus on the product, offering video clips, detailed graphics, photographs and animations, in addition to text. This will enable it to provide more detail not possible with other advertising media (Can’t, 2009).
Promotional Newsletter
The company can utilize the email facility of most web browsers in conjunction with lists of addresses to dispatch out e-mail with advertising slants. Although hardcore advertising is generally frowned upon in the e-mail in the e-mail world, the company can create an e-newsletter that provides value added information that would be important to a select group of prospects.
The company will utilize its website to promote the e-newsletter; encouraging visitors to subscribe to the newsletter with the promise that they will be getting necessary information related to the company products. This assists the viewer to initiate contact with the e-newsletter rather than being forced on them.
The company will benefit from the advertising as it will be associated with the newsletter as long as it is a good newsletter. The newsletter will also enable the company to unobtrusively advertise its products and services (Loudon, 2004).
Customer Trainings Workshops
The company will strive to offer medical training to both its sales force and clients through training and workshops. Training and workshops will concentrate on supporting clients, and promoting professional and online information for customers.
Customer training and workshops will offer clients medical education on the products through strategy, content development, and online broadcast conferences and events. The workshops will bring the medical experts and allow leaders in the medical industry to interact with sales professional through various medical simulations (Paley, 2000).
Medical Science trade Exhibitions
The company will take advantage of trade exhibitions to promote the product. Stalls for exhibitions will professionally be designed. The company will engage an advertising agency to provide the design. Promotional materials will be printed and distributed.
Gifts such as wall calendars will be provided for those who visit the stall. These arrangements will be made well in advance and carried to the exhibition site. The company will also provide enough manpower to put up the stall during the exhibition (Kotler, 2000).
Domestic promotions
The company will make use of direct mailings for its domestic promotions. This will be a mechanism for disseminating unsolicited and solicited information abut the product. Unsolicited information will be that which is received without having been requested or subscribed for.
Among the materials that will be available by this mechanism shall be direct mailings about the medical products and advertisements from product distributors. Unsolicited materials through the mail will be an important source of medical information for both lay people and medical professionals. The company will use the mails to send literature in response to direct requests or to people on the mailing lists (Loudon, 2004).
Specific Target Program Mailings
The company will carefully consider what type of clients to target and the product to promote. The company will establish specific objectives that will be measurable. These objectives will be related to improved medical service to clients, enhance client education on certain topics on the product and enhance target goals for utilization of the products.
The objectives will be program based to assist in deciding on target market (Physicians and patients). The objective will also develop communication methods for offering the product to the target market (Kotler, 2000).
Key Journal Advertising
Professional journal advertising that shall be engaged by the company will adhere to the medical associations of most countries. Before publishing, the company will ensure that it passes through censorship to comply.
Such requirements expected to be met will include: the advertisement clearly identifying the advertiser and the product; ensuring that the advertisement is not deceptive and misleading; ensuring that the layout, art work and format are such as to avoid confusion with editorial content of publication (Westwood, 2001).
The company will not engage in unfair comparisons and unwarranted disparagement of competitors products. In sum, the advertisement will conform to the principles of clinical ethics.
Multi media Presentation
The use of multimedia will be aimed at making communications more efficient and effective, thus assisting the company to accurately discern the need for change and to formulate and implement an appropriate response.
Multimedia communication will enhance the company’s ability to enrich the customer, cooperate to enhance competiveness, organize to master change and uncertainty, and leverage the impact of people and information. Multimedia will contribute to the strategic thrust that facilitates agility and long term success for the company (Paley, 2000).
Multimedia will effectively be utilized in promoting products to customers. The company will utilize the web as a popular medium of delivery of multimedia promotions. The company will utilize web pages using a rich combination of media in promotions.
The web pages will be endowed with pictures to show products, text that describe the product, graphs and charts that further highlight desirable performance characteristics of products and more. Videos could also be included to the clients to see the product in action.
This will deliver a customer testimonial that actually indicates a satisfied customer using the product. The effective use of multimedia on web pages will be a powerful tool for persuasion (Luther, 2001).
Distribution of Multimedia Presentation on CD
The multimedia will be employed effectively to provide clients with added value for sale. It will be used to offer assembly and operating instructions, to deliver information on other products that might, based on customers profile be of importance to customers. The will strive to offer customers the product with a video tape as a substitute to a traditional paper assembly and operating instructions manual for the use of the products.
The video will provide instructions on how to use the product. Multimedia presentation on CD-ROM is another medium that will be used effectively by the company for the delivery of multimedia after-sale customer support.
The important advantages targeted will be the capacity to support greater customer interaction and a delivery of a combination of media. CD-Rom based multimedia manuals will allow users to have more choice about the nature of assistance they receive. CD-ROM based multimedia manuals will designed to offer clients options from which to select a form of assistance appropriate for them (Kotler, 2000).
International Distributor Meetings
International sales distribution will cover the sales and logistic processes. These sales processes will involve the acquisition of orders. Product sales will start with location of the final demand for the products and services. This is the stage closest to the client, so it interprets requirement patterns and preferences and transmits external client orders.
These external orders are expected to come directly from ultimate clients or from intermediary institutions directly. The orders will then be translated into specific supply chain activities, such as; processing of orders, operations of distribution centres, and holding and control of stocks (Westwood, 2001).
The sales processes will be aimed at creating client loyalty and the performance of the chain. Logistic processes which includes the design of the physical distribution process, order processing and delivery will be carefully designed. International distributors meetings will assist monitor the dynamics in the market environment that might influence product distribution.
In addition, the company will provide graphics such as; logos and photos to country operations. The company’s overseas distributors will take advantage of annual international distributor meetings to discuss promotional practices with their head office counterparts (Can’t, 2009).
The company will have alternative strategies to spell out how the company’s resources shall be combined and adapted to market needs. The company’s international marketers will form communication programs for application in targeted markets. These programs will include; advertising, personal selling, publicity, and sponsorship (Can’t, 2009).
Promotion through Press releases
The company will engage in full gear public relations. This will ensure non-personal stimulation of demand for the product by paid placement of important news regarding the product in a print or broadcast medium. This will be aimed at creating the products credibility for advertising to follow. The company will generate publicity by creating special events, holding press conferences, and preparing news releases and media kits.
Through press releases, the company will operate cost effectively and will get an easy way to get free publicity and generate interest and sales for the product. The press releases will also assist the company in generating tons of enquiries from a single press release send to a list of journals that serve the market (Loudon, 2004).
Conclusion
In sum, proper coordination of all activities will be ensured to achieve promotional strategies (Westwood, 2001). By overwhelming the medical practitioner, the company will try to keep clients informed about its products through the promotional cycle (Stapleton, 1998).
This will include informing them of the name of the product, explaining the story of the product, what the product is used for, convincing them on its clinical effectiveness, informing of progress of the company, and dispatching samples of the product, for the purpose of maintaining the name of the company to remain fresh in their minds (Loudon, 2004).
Reference List
Can’t, M. (2009). Marketing Management. New York: Routledge.
Kotler, P. (2000). Marketing Management. London: Blackwell Publishers.
Kurtz, D., Mackenzie, F., & Snow, K. (2009). Contemporary Marketing. New York: Springer.
London, D., & Robert, S. (2004). Marketing Management. New York: Routledge.
Luther, W. (2001). The Marketing Plan. London: Springer Publishers.
Paley, N. (2000). The Marketing Strategy Desktop Guide. Cambridge: Cambridge University Press.
Stapleton, J., & Thomas, M. (1998). How to Prepare a Marketing Plan. London: Blackwell Publishers.
Stephens, J., & Thomas, M. (2005). Marketing Planning Guide. New Jersey: Princeton University Press
Westwood, J. (2001). The Marketing Plan. New York: Open Court Publishing.
Product cycle has three main stages; introduction, growth, maturity and decline, Polaroid is an international electronic making company whose products are in the decline stage. In the 1970 to 1990’s, the company’s products were enjoying a large market especially in the camera industry but the invention of instant camera turned around the company’s success.
When a company is in the decline stage, there are three main options opened to it; develop a products rejuvenation strategy, stop production or create a niche market by harvesting the product.
The approach taken by Polaroid is to try to rejuvenate its products, in the efforts of building a brand identity, the company has embarked on massive promotional strategies using prominent musicians. The choice of the characters to venture in its adverts is triggered by the target market of the company.
Lady Gaga and Polaroid chairperson Bobby Sager are on the forefront leading the marketing campaigns. The company is using pull promotional strategies to penetrate the competitive electronic market dominated by Sony, Kodak, and Nikon.
Polaroid is not alone in the decline stage; in the 1990’s and early 2000, General Motor Company (GM), enjoyed a large market share in the automobile industry, however the sale started to decline in 2003 until in 2008, an upcoming Toyota Motor company surpassed the GM in sales to be the world largest automobile. Although GM has not given up in the battle for market, its success is limited with its sales declining yearly.
Panasonic is another company that is struggling to remain competitive in the changing electronic world. The company was among the world largest electronic producers only to reach its maturity stage in the late 1990’s. The company is heavily investing in modern technology and promotion to compete effectively in the internal arena (Paul & Donnelly, 2010).
Michael Moore case
Business world has been ventured by unethical conducts, in the case of Michael Moore, to secure a contact; he is required to give kickback to the approving authority. The deal is meant to be complicated where the officials of the contacting authority want their 5% share included in the contract amount.
The official wants to corrode with Michael Moore to defraud the government of an eastern European country; on the other hand, Michael Moore can see a door of opportunity if he takes the contract.
The situation in the case portrays how unethical, corrupt and irresponsible come people trusted in government offices have become. They are willing to corrode with suppliers for their own benefit. What is important to Michael Moore is to uphold his integrity and professionalism and refuse the deal.
After refusing the deal, he should ensure that the trend stops by informing relevant anticorruption bodies in the country. To create good relations with the companies informing the integrity authorities concerned, Michael Moore should emphasize and let them understand of his moral and professional standing. Through they may hate doing business with him now, in the future he will benefit from the actions.
The deal the contracting officials wanted done was a violation of human rights and misuse of office and power. If corruption has to stop, in the business world, both parties to a deal should come out and defend business virtues and integrity.
Business integrity and good name is precious than gold and wealth, it would be better to lay off the employees following national and international labour laws than to use corrupt means to remain in the business.
Reference
Paul P., & Donnelly, H.(2010). Preface to Marketing Management. Boston: McGraw Hill.
One of the most recent concerns of the modern global market, stealth ads play quite a big role in the world of marketing. Making people pay their attention to the specific products or companies, they enhance the selling rates in the given enterprise and thus create a specific trend. Because of their camouflage and the subtle influence, they produce the effect which is far stronger than any powerful ad can create.
There is no doubt that stealth ads are times more efficient than the usual ways of advertisement. One of the explanations is that a song is something that one can listen to for a number of times, which can be compared to hypnosis. In spite of the fact that the impact of such hypnosis is less tragic and traumatic than that of the traditional one, the ethical aspect of such means of advertising is seriously doubted.
According to the official data, the use of stealth ads has increased the sales volume almost fourteen times (Blair). On the one hand, such practice looks most innocent and suggests a breakthrough in the scale of the global market, which is, no doubts, very aspiring. Yet on the other hand is the controversal nature of such ads and the way they influence people’s actions.
According to Blair, the key idea of the stealth ads success is the fact that “they do not look like ads”. In terms of protection of consumers, this looks quite like the violation of consumers’ rights and even foisting certain goods on people.
With the disguise of a free-willed choice, this new invention of marketing can bring colossal benefit to millions of entrepreneurs, which will probably make the stealth ads one of the most popular means to advertise goods in the nearest future.
However, to be fair, it would be necessary to mention some advantages of the new invention. One of the most obvious pluses is that customers will be able to find out bout the novelties of the market just listening to music or watching a movie.
Nevertheless, the aesthetic pleasure of such pastime could become questionable; it is only now that the fans of the singers have to be “sharp-eared” enough to be able to read between the lines of the favourite songs (Smith). And, in addition, relying on such tricky psychological issues can be rather risky (Blair).
Another idea which can give a lot of food for thoughts is the chain management which is becoming increasingly widespread. Worked out in practice, this system has proved to be quite worthwhile. With help of this system, entrepreneurs will be able to satisfy the demand on the company products in a better way, reducing the costs spent on logistics and custom.
Because of its high dynamics and unceasing circulation of information, products and money supply between various stages, chain management proves efficient in the modern world of global marketing and the float of data. A good example of chain management is Microsoft Corporation.
Being the company whose product is spread literally all over the world, Microsoft Corporation uses the system of the chain management to provide the product supply anywhere in the world.
Combined with well-developed system of relationship management, it provides splendid results: millions of people choose exactly Microsoft Corporation when selecting the right software shell for their computers. Despite the fact that Microsoft has worthy competitors, it still holds the unquestionable leadership in the sphere of computers and everything that goes with them.
Thus, it is obvious that well-calculated chain management system combined with relationship management is bound to bring fruitful results. Although this approach has not been time-tested yet, it shows good potential. According to the world market prognoses, such scheme is going to be applied to every single enterprise soon.
Works Cited
Blair, Elizabeth. Stealth Ads: They’re Effective – and Priced to Move. NPR, 5 May 2005. Web.
Smith, Ethan, and Julie Jargon. Chew on This: Hit Song Is a Gum Jingle. The Wall Street Journal. n.d. Web.
Successful promotion is one of the keys to the enormous success enjoyed by TJX Company. The company has managed to develop and realize the promotional strategies that differentiate its stores from the stores of other companies and constantly increase the number of customers.
Promotion
The main promotional objectives of TJX Company include creating the brand image that reflects the company’s determination to selling high-quality products for exceptionally reasonable prices. Therefore, the company relies on the concept of moderate pricing combined with great quality while promoting its stores. TJX Company has used the theme of effective shopping based on buying fashionable name-brand items without spending a significant amount of money as the basis for most of its advertising campaigns.
The company uses various methods of promotion, such as the declaration of organizational culture aimed at maintaining a family-like atmosphere in the stores, advertising, including internet advertising, television commercials, media ads, banner ads, etc., direct marketing, including catalogs and coupons, and corporate philanthropy (e.g. The TJX Foundation in the U.S. provides funding for programs aimed at providing services to disadvantaged children, women, and families) (The TJX Foundation in the U.S., n.d.). The mentioned elements of the company’s promotion strategy form the basis of the effective use of integrated marketing communications (IMC) by the company. IMC is very important to TJX Company, as it has helped it to build strong positive brand perception, attract an extensive number of returning customers, and deliver the message revealing the main advantages of the company as compared to the competitors to the wide publicity.
Competitive Advantage in Promotion
One of the main distinctive features used by the company to gain a competitive advantage in promotion is using the strategy of selling new instead of putting the old items at a discount. TJX uses the fast-fashion concept based on the provision of constant quick turnovers of the products sold in the stores. Instead of promoting the sales enabling the customers to buy old items for a smaller price, the company is determined to selling new items for the lowest possible price (Kowitt, 2014). Such a strategy contributes to customers’ satisfaction as they feel they keep up to the latest collection constantly. Therefore, the promotion of the brand image based on fast-fashion retailing gives a competitive advantage to the company.
Another distinctive strategy illustrating the company’s competitive advantage in promotion is hiding the “treasuries” deep inside the stores. Instead of using such type of promotion as putting the most amazing and cost-effective product offers at the shop window or promoting them with the help of a massive marketing campaign, TJX hides the treasuries of its new arrivals in the stores (Kowitt, 2014). Such a strategy creates the unique experience received by the customers visiting the company’s stores, as the person that manages to find the gem feels like he/she gets something unique and not available for others.
Other specifics of company’s strategy of creating competitive advantage in the promotion include personal selling supported by individual gift cards, coupons, and individualized cards, strong differentiation between the brands operated by TJX, and usage of a good reputation of the company in the native country for promotional purposes during the expansion to foreign markets.
The analysis of the promotional strategies used by TJX Company reveals that the company uses a special approach to promotion including the creation of a distinctive brand image based on the combination of quality with attractive pricing and provision of unique shopping experience.