How to Enhance Marketing Communications - Assignment Example

Marketing Student Name University Affiliation Part A- Question 1- Briefly explain what the following are and how they can enhance marketing communications: buzz marketing, viral marketing and guerrilla marketing In buzz marketing the advertiser communicates a marketing message to few influential individuals who in turn have word of mouth conversations flattering the ones they talk to as they feel ‘in the know’ and in turn spread the word to their colleagues and friends. Viral marketing induces Web users and websites to relay a marketing message to fellow users and site. Guerrilla marketing is a where a company uses unconventional interactions with an aim of promoting a product or service. The above marketing techniques depend on personal interaction with the consumer thus the advertiser is able to get feedback on their product or service which can be used to improve the product. Part- Question 2- Explain what is meant by the process of product adoption as well as the process of diffusion of innovations. How does this information influence marketing activities? Customers first become awareness of the innovation but lacks information then develop interest on it thus look for the information. Consumers then evaluate the innovation’s pros and cons. Customers then purchase the innovation to determine it quality and then decide to either adopt or reject it. The diffusion process is a description of how a new innovation spreads within a social group. The adoption happens in the following order are the innovators, early adopters, early and late majority and finally the laggards. Once the advertiser has understood where their innovation lies with their prospective customers they can tailor their messages to meet the needs of the consumers who are supposed to be adopting the product at that stage. Part A- Question 3- Briefly explain what is meant by Porter’s Value Chain. How does this differ from the supply chain as a whole? The value chain helps in analyzing what activities an organization can undertake to gain competitive advantage while still providing the best value for their customers. These activities include inbound logistics, operation activities, outbound logistics and marketing logistics . The supply chain on the other hand is concerned with the activities that involve all organizations, individuals, activities, resources and technology undertaken in creation of a product’s sale. It starts with the delivery of raw materials from the supplier to the supply of the end product to the customer. The supply chain is only concerned with the movement of the product while the value chain also entails adding value to the product. Part A- Question 4- How do marketers create and measure service quality. Use examples to illustrate your answer. Tangible- the physical evidence of the purported service including appearance of the facility. This can be measured by requesting the customers to fill a questionnaire on their views about the general set up of the facility as well as measuring it against what competitors have set up. Reliability- this entails the marketers ensuring the facility is able to offer the promised appropriately for example keeping records up to date and can be measured by conducting periodical audits of the services offered. Responsiveness- the marketers should ensure the employees always help customers promptly for example, ensuring appointments are set up quickly. This can be created by setting up efficient operating systems. Part B- Question 5- Briefly explain how branding can create product identity. Using relevant examples outline the different types of branding strategies companies might use. Branding helps in the process of identifying the product in regards to its name or image which communicates both the benefits and qualities of a product to prospective customers and customers. The branding messages insist on elements such as colors, logos, packaging and graphics which consumer in identifying the product. Branding strategies include: Company Name- a strong brand is created in the company name and used as the vehicle for marketing all the products from that company e.g. Mercedez Benz. Individual Branding- each brand is given a separate name and put into competition with other products from the same company. For example Tang and Kool-Aid both owned by Kraft Foods. Part A- Question 6- Identify the key pricing strategies which a firm might use and briefly explain some of the reasons why different approaches may be taken. Aligning the pricing strategy with the business plan- the pricing objectives should be in line with the business plan. Understanding market forces- such factors include product type, supplier costs and number of competitors. This method should be employed as it will allow the firm’s be priced in relation to the market thus they can remain competitive. Understanding the real costs- the firm should fully consider both the actual and variable costs. General pricing- the firm owner should on a continual basis evaluate their prices. Sometimes they can increase the prices with a small unit margin to see how many of their customers will still be willing to pay and adjust accordingly. Part B- Question 1- Outline the stages organizations go through in order to develop new products. Using relevant examples to support your answer examine the risks of failure and suggest how organizations can try to minimize these risks whilst retaining control of costs. Concept Stage- evaluating the opportunities that exist for the new product. If the concept is approved, the program for the product will be staffed and schedules made available to team members. Definition and Business Case- defining the product that is to be developed and completing the product’s business plan. The core team then presents the business plan to the Program Review Board in the Business Plan Review. Development Stage- development the product on the basis of the specifications and development plans that have been approved at the Business Plan Review. Testing Stage- this stage aims at completing product testing. Deployment Stage- marketing and launch plan implementation as well as distribution of the product and support. Some of the risks of failure include: Failing to consider the voice of the customer to into the product innovation process- customers’ feedback should be employed in the product design stage to avoid investing in a product that they will not be interested in buying. Not aligning the product with the larger company strategy- For example, less than 50% of resources in engineering are spent focusing on the management priorities (McKendrick, 2014). This shows that there is a high probability that companies are spending money developing the wrong products or features. Clear communication should be established between the managers and those developing the new product. Failing to automate the process of innovation- some companies still depend on paper based processes of innovation which can be slow in keeping track of things. Companies should employ Web-based techniques for example MS Excel to keep track of the changes. Failure in mitigation of planning and execution risk- this includes failing to plan resources they have carefully. This can lead to problems such as missed market opportunities due to failing to meet launch deadlines. Companies should always align their plans with the resources they have. Part B- Question 2- When launching a new consumer product it is equally important to both “push” products into the supply chain and “pull” them through by creating consumer demand. Explain why this is so and suggest a range of promotional/communication methods to achieve each objective A push strategy is a comprehensive promotional plan of ensuring the product is delivered through whichever means necessary, making sure the consumer is aware of the new product innovation at point of purchase. It is also referred to as ‘taking the product to the customer’. Some of the push techniques that can be employed include organizing trade shows to create customer demand, displaying the product at the point of sales, an efficient supply chain which ensures the retailers always have stock, selling face to face to customers in showrooms as well as negotiating with the retailers to stock the new product. The producer promotes the products to the wholesalers who in turn promote to retailers and the retailers promote it to customers. Push strategy attempts to sell the product directly to the consumers. A pull strategy on the other hand aims at motivating the consumers to actively seek the company’s product. It is also referred as ‘getting the customers to come to you’. Some of the tactics involved include mass media promotion and advertising, referrals by word of mouth, management of customer relationship as well as discounts and sales promotions. It works in reverse in that if customers want a product, the retailers will stock it, the retailers usually get the products from wholesalers who will also stock the product due to demand created by the retailers. Finally, the manufacturers will manufacture the product due to the demand created by the wholesalers. Both of the strategies are however important when launching a new product. The company has to persuade retailers to purchase their products. Word of mouth referrals are also important as they create brand awareness and build value for the product. A new product should be designed around the customer having put into consideration all the factors of the marketing mix and both of the aspects will be achievable. Part B- Question 3- Using relevant examples outline the four stages in a typical product life cycle whilst, at the same time, identifying any weaknesses in the model. Discuss some actions which may be taken by marketers in order to successfully manage products through the product life cycle. Introduction- the marketing team insists on promotion and the initial distribution of the product. Growth- the market has accepted the product thus the sales begin to rise though improvements need to be done on the product to stay competitive. Maturity- the product sales reach their peak and competition sets in with new improved products. Decline- sales of the product begin to dwindle as it reaches its saturation point. Most products are forced out of the market due to increased competition and decreased sales. The limitations of the product life cycle include: It assumes that all products will go through the whole life cycle while some product define or generate their own curves. For example the product maybe instantly successful thus they make the curve contagion. Movies like Agnipath came into the market in this style. When a product rises so fast but falls fast as well, the curve is called a Fad curve. Marketers should treat all products differently so that they are prepared for any eventuality as a result of a different curve. The cycle also seeks to show that the products fall at some point while this is not the case with some products like nature food and yoga. After the decline these products found new popularity as well as rejuvenation. Marketers should figure out whether their product can be product can be brought back to the market in the same state after decline or it needs to be improved. The historical data used does not help in forecasting when a product shifts from one stage to another. For example it does not indicate when the product will move from the introduction stage to the growth stage. It is the job of the marketers to study their sales data carefully so that they can tell when the product is shifting stages. Reference McKendrick, J. (2014, May 6). Four reasons new product launches fail, and what can be done about it. Retrieved May 7, 2014, from SMARTPLANET: http://www.smartplanet.com/blog/business-brains/four-reasons-new-product-launches-fail-and-what-can-be-done-about-it/ Read More