The Current Marketing Mix for HP - Essay Example

There is an increased margin for retailers and wholesalers through the bundling of accessories and services (Kotler 394).

For the promotion element of the marketing mix, HP, over the years, has focused more on the creation of a brand identity for the company and its products. Thus, they changed their strategy to pull-based from push-based, with greater spending implemented on sales promotion and advertising (Kotler 391). Finally, for the place element, HP has begun to offer better terms of payment, as well as bigger quantities of discounts for the dealers. Because of the improved relationship with the dealers, HP has increased its number of full-time retailers to 750 from 350, as well as stocked additional 1050 dealers for a portion of their line.

Discuss two concepts covered in the chapter that best relate to this case and how?

Social marketing is the adoption and adaptation of processes, institutions, and commercial marketing activities as a way to induce behavioral change among the target market on a permanent or temporary basis to achieve its social goal (Kotler 395). It involves the induction of an approach of leadership, which involves the deliberate use of persuasion and influence to move the target market to a course of action that is more specific. For the social marketing concept, the company should consider the long-term interests of society and consider the needs and wants of the customers. HP has given its commitment aimed at drastically cutting down its impact on the environment. HP has managed the impact of its energy needs via the calculation of GHG emissions, which its daily operations produce through its use of electricity and by their daily operations.

The selling concept is the notion that the customer will not buy something automatically but, rather, it needs to be sold to them (Kotler 396). This means that a persuasive sales assistant or advert tells the customer of the ways the product will alter their lives, and could make them buy a product that they do not desire. The consumer will not purchase enough products from the organization until they undertake promotional selling.

Consumers are inert and require goading to buy through conversion of their inert need to a purchasing motive via selling and persuasive action. Hp understands the wants and needs of the customer and, therefore, customers will not purchase their products unless they are promoted and sold. Hence, HP has placed increased focus on the creation of sales transactions by conducting regular promotions, which are aimed at attracting customers, as well as increasing the truncation of sales.

Which of the sales force structures described in the text best describes HP’s structure?

HP utilizes a separate consumer sales force as its sales force structure. In decentralized organizations, field sales managers carry out the everyday operations of the organization, as well as shouldering responsibility for their sales staff performance (Kotler 392). The sales force also consists of a mixture of specialist generalist salespersons. However, the employees do not make all of the company’s sales; the company’s sales force structure utilizes home-based telemarketers. They also have independent sales agents on contract who conduct their sales in particular geographic areas.

What are the positive and negative aspects of HP’s new sales force structure?

The beneficial edge of this sales force structure is that the salespersons can understand the total business of the consumer. They are also able to cross-sell, as well as provide solutions for products and services, while also allowing them to act as business partners rather than their client’s vendor (Kotler 394). The undesirable edge of this sales force structure is that the salespersons will have decreased product focus and expertise. Additionally, the company will find it difficult to control the effort given to each of its products. This could see some products undersold as others are over-marketed.

Hiring experienced personnel leads to rapid improvement of productivity although these persons may have their way of doing things that may be troublesome to fit in their new environment. Things become more organized and transparent, by driving a customer sales force, with coordination across the workforce becoming easier. However, thinking outside the box will be decreased, and the managers could use this structure to micro-manage their employees. Finally, giving the salespersons ownership of clients and paying via commission will attract aggressive and independent individuals who are performance-oriented (Kotler 395). However, this discourages teamwork, creating a fragile relationship based on money. Read More