Promotional Strategy for JFs Electronics Customized Cell Phones - Essay Example

Topic: Promotional Strategy for JF’s Electronics customized cell phones Introduction Under the concept of integrated marketing communication (IMC), which is a holistic approach to market communication, we at JF’s Electronics need to develop a promotional strategy for JF’s Electronics customized cell phones. For our promotional strategy, we need to use both online and offline marketing channels. Promotion is an important element of marketing mix for developing an integrated marketing communication program for our customized cell phones. Launching the new product in US market needs a robust advertising and sales promotion strategy. These are important aspects of marketing communication. Promotional Strategy We need to be selective in choosing from a number of online and offline marketing mediums. Internet marketing, direct marketing, database marketing, and public relations – all mediums seem to be consistent to provide the competitive edge in the market. Internet marketing can help in attracting new customers from the social media sites like Facebook where prospective customers have better chances of viewing the advertisement. Google advertisement through Pay-per-click programs and promotion through email marketing can be beneficial where only customers from the database could be sent promotional mailers, designed by the hired PR agency. Through Internet-TV, relevant audiences’ attention can be captured while their favorite programs are run on television channels. At the same time, using SMS as means of advertisement to the target audience telling the features of customized mobile phones of JF’s Electronics can click the marketing campaign by contacting the right touch points to attract wider audiences. Using online media tools judiciously can make the marketing campaigns more effective and relevant (http://en.wikipedia.org/wiki/Integrated_marketing_communications). Print media like radio, television, newspapers, and billboards are components of offline media. JF’s Electronics should combine both Medias in advertising the new product, customized cell phone. Offline media can be a crucial and cheap tool in making the product popular through television and radio advertisement. For television advertisement, there is good scope of showing interesting visuals based on the storyline as per the features of customized cell phones not found available in any other company and popular brand’s cell phones. Banners of the product at the most visible locations at the marketplace will help in generating people’s interest. All promotional initiatives should be made at regular and continuous intervals to create brand value for the company, i.e. JF’s Electronics and its product (http://en.wikipedia.org/wiki/Integrated_marketing_communications). We should consider other levels of integration to be used like Horizontal, Vertical, Internal, External, and Data integration. Through Horizontal integration, JF’s Electronics can integrate promotion with business functions by developing cooperation on marketing strategy among the company’s different departments like production, finance, distribution and communications so that they know the impact of their decisions on the customers. Data can be integrated through the departments of sales, direct mail and advertising. JF’s Electronics needs a marketing information system to gather and analyze the related data across different departments. JF’s Electronics is offering a new product, company is not new; it has already rooted firmly in North America by selling quality and affordable computers. All marketing staff should be a part of the internal marketing. They should know the audience reaction to the new advertisements, brand identity emerging from the advertisements, newly established service standards, and new strategic partners like wholesalers, retailers, and distributors. External integration can also help in the advertising initiatives by working closely with external partners contracted by the company like advertising and PR agencies so that message reaches and touches to the hearts of relevant audiences (MMC Learning, 2009). Public Relations, Direct Marketing and Personal Selling Plan Nothing can be a better option than developing JF’s Electronics own marketing and sales plan based on its existing strength of public relations. It seems to be more relevant for two reasons. First, the product – customized cell phone – is new to the market. It has to be marketed first by its own network of sales people so that importance of a customized cell phone can be explained to prospects better way by the personal of JF’s Electronics. Second reason is that it is not wise to spend money on distribution expenses. It can raise the cost of the product in the end making it less competitive. Public relations capabilities of the marketing manager can help in direct marketing of the product. For that a personal selling plan can be made by touching the sales realization points. Experience of the sales and marketing manager in handling advertising and promotion, their relationship with other marketing partners of the industry can help in personal selling plan. Selling personal should have personal sales capabilities, management expertise and sound knowledge of profit and loss considerations. Network of the sales people of the company for other products like computers can be used in the sales realization of the new product. Existing data of the company can be used to the benefit of the company by introducing the product – customized cell phone – to the old customers of the company. This strategy implemented smartly can help retain the old customers for customized cell phone of the JF’s Electronics. At the same time sales expansion to new areas should be made by recruiting new sales people the old territories and sending experienced sales staff to new locations. The company should attempt covering big cities first, as scope of selling customized cell phone is greater there. Expansion can be accomplished after a time interval in smaller towns and cities through the company’s sales team. Thus, a lot depends on the potential of sales and marketing managers in formulating and implementing a selling plan based on public relations, direct, and personalized marketing Promotional literature at the banners and television advertisement should be such that appeal remains in the mind of viewers for its flashy lines for a long time. Marketing managers should have good contacts with the media. Marketing Distribution Channel Analysis For distribution of the new product, JF’s Electronics should thoroughly consider the selection of right distributor. Factors need to be considered such as Cost of Distribution Method vs. Services Provided. Value-added services of the distributor need to be analyzed before taking a decision on the right distributor. Type and number of customers could be diverse to use the retailer’s services. As the customized cell phone is a new product, JF’s Electronics should consider selling through its own marketing efforts. As the market is not concentrated being a new product, for scattered market, we should use the services of a wholesaler and retailer. A customized cell phone is a technically complex electronic item so it would be better to sell directly or through the agent. Financial resources of the company also contribute to the selection of a distribution channel. As JF’s Electronics is already established in the business of computers, it has sound financials to afford a broker. To keep control on sales activities also, services of a broker or agent should be taken. Instead of engaging a distributor who does all processes from packaging to delivery, JF’s Electronics should opt for a distributor whose market success rate is high. As manufacturing would not be on the large scale initially, intermediaries whether wholesalers, retailers or agents, are must for the company, also due to limited capability of spending on sales and promotion of the new product. In my opinion, the company should opt for retailers as well in selected locations. Every market has some retailers who command respect for their services. The company should find out such retail outlets that are quite popular to attract masses. Supplying the customized cell phone directly to the retailer at selected cities and locations can be a better strategy. It does not mean not to engage the services of highly successful distributors. Area-wise distribution contracts should be given where direct marketing efforts are not effective, particularly print media (Patsula Media, 2001). Pros of using Agents, Brokers and Representatives The number of distribution channels to the North American businesses is astonishingly high. Representatives can sell any product or service. Some of the pros are given below of engaging them. They can be reached and available at short notice Their valuable market analysis can help in forecasting sales and knowing our market competitors Their suggestions on product improvisations are worthy attempting considering their knowledge of the related market They can brief us on the market behavior without charging on this service They are more often in a better position to search multiple usages of the product You need not pay them if they don’t get orders They remain in touch with the customers by contacting them, so they better know customer behavior They know their territories better than the manufacturer Can handle after sale services, warranties, training and installation Speak your voice to market your products Their expertise of complimentary products adds power to the offers made by them than our efforts alone We can benefit from their recognition by the customers Cons of using Agents, Brokers, Representatives Manufacturers can be at a loss by taking distributors’ services, as it is not an easy job providing training according to our business needs. Their functions cannot be supervised Need a lot of support of promotional material like brochures and samples Can be out of control after gaining success; you have to entertain them as partners in your business Customer loyalty can shift towards distributors in stead of the company Their inquiries have to be answered always first to get their attention and effort put on You have to pay them generous and timely commissions (Patsula Media, 2001). JF’s Electronics Distribution Strategy & Overall Marketing Objectives After analyzing the basic distribution channels, JF’s Electronics distribution strategy needs not to be rigid; it should be flexible as per the market situation. It should not depend wholly on a single distributor for the whole North American market. It should engage wholesalers and retailers directly where the product has more sales realization chances depending on the caliber of the retailer or the wholesaler. Where advertisement and promotional efforts are not prominent, it should engage reputed distributors’ services so that the new product and the company can benefit from experience and market penetration of the distributor. The company should try hands in direct marketing on the strength of its marketing managers’ public relations and sales peoples’ sales realization capabilities at the same time for selected territories. Reference MMC Learning. (2009). Marketing communications. Retrieved March 19, 2010 from http://www.multimediamarketing.com/mkc/marketingcommunications/ Patsula Media. (2001).The Entrepreneur’s Guidebook Series. Retrieved March 19, 2010 from http://www.smbtn.com/books/gb71.pdf Wikipedia (16 March 2010). Integrated marketing communications. Retrieved March 19, 2010 from http://en.wikipedia.org/wiki/Integrated_marketing_communications Read More