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HP Case Paper - Essay Example

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ver the years, HP has gone through various changes that seem to indicate that its marketing mix is changing to a more market oriented one. For the product element of the mix, HP has shifted focus from the use of handheld calculators to PCs as they believe that they are the way of the future. …
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HP Case Paper

Download file to see previous pages... HP also laid emphasis on differentiation, constant change, and creating a brand family, as well as offering additional services and accessories. For price, HP has introduced a wide range of competitive pricing based on the differentiation of products. This has seen 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 on the company and 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 quantity on 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 stocking 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 in order to achieve its social goal (Kotler 395). It involves the induction of an approach of leadership, which involves 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 the society and consider the needs and wants of the customers. HP has given its commitment aimed at drastically cutting down their impact on the environment. HP has managed the impact of its energy needs via the calculation of GHG emissions, which their daily operations produce through their 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 that tells the customer of the ways the product will alter their lives, which 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 separated 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 struc ...Download file to see next pagesRead More
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