The Marketing Mix Essays

The Marketing Mix Essays The Marketing Mix Essay The Marketing Mix Essay Running Head: The Marketing Mix: Distribution Channels What might the inventors of new â€Å"flying cars† need to consider to develop a distribution strategy for their proposed products? Customers are more sophisticated than ever before and they have access to high quality information from the internet, so they make decisions based off excess information. The first step that should be considered to sale Flying Cars is a centralized location. Once a location is established then what would be the most cost-effective way to create demand for Flying Cars? Followed â€Å"by how do customers want to shop and buy? I think the best distribution channel for selling Flying Cars would be the producer to wholesaler, to retailer to consumer. As for the Distribution Intensity, I think the best bet would be the Exclusive Distribution. The first step that should be considered is a centralized location. Producers find that it is an issue to figure out where to invest. They have to pick the ri ght place to sale their product. I don’t think that an airline would necessarily be the right place to sale the Flying Cars because an airline consists of large planes and thousands of people a day. If a Flying Car is going to be used as something that people can take to work, school, grocery store, and ect. Then perhaps they should be sold in an area where regular cars are sold. Once a location is established then what is the most cost-effective way to create demand for Flying Cars? A transportation method can be created to implement both a driving and flying status. Consumers would be thrilled to be able to commute faster and alleviate the traffic jams. An advertisement through television coupled with radio commercials would be a suffice way to ensure that the word is going out to the public on the latest and greatest transportation method. In addition to this way of advertising the producer can also advertise through internet, billboards, flyers, and magazines. Customers would eventually be persuaded through advertisement to want to purchase a Flying Car. I think the best distribution channel for selling Flying Cars would be the producer to wholesaler, to the retailer to consumer. The wholesaler will get the products from the manufacturer, usually in very large quantities, and in turn sells them to retail establishments at a higher up price. The wholesalers can also sell to institutions and professional groups. This will take the burden of distributing off the manufacturer and allows them to focus on developing and advertising new products. As for the Distribution Intensity, I think the best bet would be the Exclusive Distribution. This is when the manufacturers grant certain dealers special rights to sell the product. This type of distribution is used for selling cars, and because it is the same concept for Flying Cars, it would be beneficial to use the same strategy. The retailer benefits from the lack of competition, and the manufacturer benefits from a greater sales commitment on the part of the retailer. Furthermore, exclusive distribution gives the manufacturer better control over the way the product is merchandised. References: indusperfgrp. com/newdiststrat. htm wisegeek. com/what-is-a-wholesaler. htm The Marketing Mix Essays The Marketing Mix Essay The Marketing Mix Essay The major marketing management decisions can be classified in one of the following four categories:* Product* Price* Place (distribution)* PromotionThese variables are known as the marketing mix or the 4 Ps of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market. The marketing mix is portrayed in the following diagram:The Marketing MixThe firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.ProductMicrosoft needs the Xbox to be the leader in the gaming market and needs a competitive advantage over the Sony Playstation and the Game cube. Xbox has many features, which will appeal to different audiences. From the SWOT an analysis I conclude the Product should contain the following features:* A good reputation with customers* Development potential* To become the hardware giant not just the software giant* To have good game development companies behind the XboxThe Xbox has many functions such as a DVD player which only can be activated by purchasing remote control which is sold separately, Microsoft should decide that to give this free with the Xbox when someone purchase it, because the competitor Sony Playstation 2 has a DVD facility; as to my secondary information I done a questionnaire, and I asked what do you consider first when buying a games console, and the results showed that 10 people said graphics, 4 people said DVD Compatibility and also 4 people said price and 2 people said broadband compatible. This tells us that 4 people from 20 people who done the questionnaire said they would buy a console which had DVD compatibility; people are willing to pay extra for extra features. This tells us that Microsoft needs to include the remote control, and also that Microsoft need to grow the Xbox brand even bigger.PlaceA product is unlikely to be successful if customers find it difficult to purchase, so place is a v ital part of the marketing mix. After doing my research I found out the many people by gaming related products from the High Street, Microsoft needs to continue to attract new shops to sell their product, also Microsoft needs to sell their Xbox to a respectable businesses such as these,Microsoft needs to continue the relationship with stores like these; they cannot afford to sell the Xbox to corrupted businesses which can ruin the Xbox, but also they need to sell the Xbox to as may outlets as possible. Also in my survey I found out that many people like to buy products from the Internet, on the Internet you can find the Xbox for sale on many websites such as these,www.gameplay.com, www.game.uk.com and www.amazon.co.uk.PricePrice is another element of the marketing mix. Microsoft must decide how to price its product. In making this decision Microsoft has to consider, what the prices are set by competitors, how price can be used to increase sales of the product, whether the price will cover costs of production, whether customers are willing to pay that set price and different pricing strategies such as skimming or penetration pricing. For the Xbox Microsoft need to use the penetration pricing strategy because, Microsoft needs to build market share and also from my primary information I found out that price was the one of the main consideration when they considered in buying a games console.Penetration pricing pursues the objective of quantity maximization by means of a low price. It is most appropriate when:* Demand is expected to be highly elastic; that is, customers are price sensitive and the quantity demanded will increase significantly as price declines.* Large decreases in cost are expected as cumulative volume increases.* The product is of the nature of something that can gain mass appeal fairly quickly.* There is a threat of impending competition.As from above penetration pricing is appropriate as for one reason, if there is a threat from competition, th is is very true because Microsoft have lots of competition, and by pricing the product lower than the competition, they can persuade the public to buy the Xbox. All the prices can be found in table 1 in the secondary information section.PromotionMicrosoft needs to decide how best to promote the products they make and sell. The decision involves weighing up the relative cost of each form or promotion and how best to target their customers. Microsoft needs to use this promotional mix to promote the Xbox.Advertising Actual game play footageMicrosoft need to continue to advertise the Xbox on television, when they are advertising they need to show, what the Xbox can do, they need to show a bit of game play of the video games so people can see the graphics, because in my primary information I found out that that from my research that 10 out of 20 people, half of the people that I handed out the questionnaire out, said they would consider to purchase a games console, if it had good graphic s. This is good for Microsoft because they have produced a very powerful console and they need to show it to the public so they know what the Xbox is about. Also I feel that Microsoft can advertise in magazines, because from my primary information I found out that 4 out of 20 people were subscribed to gaming a magazine, which is nearly quarter of people that I handed out the questionnaire.Sales PromotionMicrosoft needs to work with the retailers to produce the best sale promotions from its competitors. They need to make offers such as buy the Xbox and receive free games with it. They have started to do this with different retailers, as you can see below I found this on the Internet, it was a offer, you got the console, an extra controller, Halo, and a free copy of MGS2 Substance which just has been on released on the Xbox on 28/03/2003.Xbox Console + Joytech Controller + Halo + FREE MGS2 Substancestreet price: à ¯Ã‚ ¿Ã‚ ½257.96gameplay price:à ¯Ã‚ ¿Ã‚ ½199.99you save: à ¯Ã‚ ¿Ã‚ ½ 57.97FREE DELIVERYà ¯Ã‚ ¿Ã‚ ½312.48 currency converterUsually sent within 3 dayscategory: Hardwareage: 15 years old and above.Promotion from www.gameplay.comMicrosoft needs to continue doing this working with the retailers and also giving the retailers trade discounts so they can pass on the savings to the public so they can buy the Xbox.Personal SellingMicrosoft needs to sell the Xbox personally because they need to target their audience so they can market their product to the right people who are willing to purchase the Xbox. I feel that Xbox should do this buy sending leaflets explaining what the Xbox is about, to schools, youth centers and colleges, where mainly the age group that they are targeting usually are.Public RelationsMicrosoft needs PR because it is free and also the Xbox can be promoted for free. For Microsoft there are many third party magazines about the Xbox, as you can see from the picture that there is a magazine which has been produced by a third party company, they need to continue to build their brand so third party magazine companies have a interest in them and also when people go to the Newsagent they might decide to buy the magazine and decide to buy the console. Also the Xbox has been through many newspaper reviews, newspapers cannot do reviews if a company does not advertise or continue to promote the product, Microsoft needs to continue this, when the public read the reviews about the Xbox that might decide them to purchase the Xbox.Direct mailMicrosoft needs to use direct mail because they need to market their Xbox to certain members of the public, who are willing to buy the Xbox. They can use many different ways in which they can promote the Xbox using direct mail.When you buy an Xbox you are given a registration card to fill in ; send back to the company, when the people send back the registration card Microsoft will have knowledge of who has purchased their console. Microsoft can use this information to send promotional materi al to their existing customers; Microsoft can use this information to send special offers to existing customers. The special offer can include, that if a family member or a friend of a existing customer buys a Xbox console they are given a free game; this will appeal to Microsoft because they are using existing customers to market their Xbox to new customers, who might be in the same age group, or they might fit into the same criteria which Xbox are looking to market their Xbox at.Also Microsoft can use these two other methods:SponsorshipMicrosoft Xbox has sponsored Linkin Parks Projekt: Revolution tour, which included bands such as, Cypress Hill, Adema and DJ-ZTRIP. The 19-city tour started on Jan. 29 in Colorado Springs and concluded in Las Vegas Feb. 24.Linkin ParkPhoto: APThe tour sponsorship marked the first deal between the game and a music partner. Also Xbox is in year two of a three-year Agreement with footwear company Vans and PepsiCos SoBe. Late last year Xbox concluded it s launch marketing program with Tricon Global Restaurants Taco Bell. The Xbox will likely partner with a soft drink brand by the summer, said Cindy Spodek-Dickey, group manager or national consumer promotions and sponsorships for Xbox.Microsoft needs to sponsor big band concerts such as the Linkin Parks concert, because bands like Linkin Park attract huge audiences to their concerts, with the Xbox logo all round the stage people will see the Xbox logo and they might decide to buy it, also what Microsoft can do is that before the concert begins they can show linkin Park playing the console and having fun, this may also lead the audience to go out and buy the Xbox because they will see their favorite band playing the Xbox.Internet PromotionMicrosoft can also promote the Xbox by using Internet promotion, they can do this by using e-mail because a person might be registered with a gaming website and they might receive gaming news every fortnight they might links of stores websites where you can purchase the Xbox, Xbox can pay these websites to do this. Also Xbox have advertised on their own official website where they give you a list of the places where you can purchase the Xbox, this is because if someone visits the website and they decide that the Xbox is the console for them they do not have to leave there seat and they can chose the best package deal for them. This is good because from my primary research I found that 5 out of 20 people I handed out the questionnaire purchased their gaming related products from the Internet.