Accounting and Taxation Issues - Assignment Example

Accounting and Taxation By: Introduction In a marketing mix, a product is used as the main element for market offering. Products may include services, physical objects, ideas, events, persons or a mixture of these entities. According to Kotler & Armstrong (2006, 233) a product mainly constitutes of anything that can be availed in the market to attract attention, to satisfy a need or for fundamental consumption. In this paper, a product applies to any of the above mentioned entities (Kotler and Armstrong 2009, pg. 143). 2. Product Promotion and Branding When launching a product, service and product designers should adequately plan their output while aiming at satisfying a given need. Human needs can only be satisfied by a product. Additionally, such products need to have a distinct identification. Such identification adequately distinguishes the new product from those that exist in the market. This identification creates a product brand. Additionally, besides branding, packaging and advertising contribute towards a brand name. For instance, Coca Cola is globally identifiable for its name and brand that uses red writings against white backgrounds. Brand naming may be used as a strategy in successful business. Therefore, a brand name can only be launched after thinking of the long term effects of the name on the consumers. Once established, changing of brands may incur huge expenses. A brand of a product serves both the buyer and seller since it helps the consumers to differentiate the products form other varieties. Sharp, effective, memorable and distinguishable branding helps in ensuring customer loyalty. Consumers are believed to use a product repeatedly only when they are fully satisfied by the product (Haig 2005, pg. 65). For new products in the market, branding involves various terminologies that are distantly distinctive. These terms include trademark, brand, brand mark and the brand name. According to (Haig, 2005) a brand can be a format, design, term, symbol, name or a combination of these elements. Mainly, a brand needs to distinguish the manufacturer and distributors of the product from those that exist in the market. Alternatively, a brand name refers to the pronounceable brand identity of the product. A good brand name may contribute towards product popularity. Often, a brand name needs to be patented to hinder replication and imitations. On the other hand, a brand mark needs to identify its products using a distinguishable symbol. In most cases, consumers identify the manufacturer of a product using the symbol. For instance, other products manufactured by Coca Cola can be identified by the Coca Cola symbol. Logos are an artistic representation of a brand of a product while as the trademarks involve both the brand name and brand mark. It may combine all the above elements (Solomon, Duke Cornell and Nizan 2009, pg.145). In marketing, brands occur as highly powerful assets as compared to designs and naming. Brands need to be developed, managed and maintained carefully since they represent the thoughts of consumers on a product and its performance. Besides branding, product quality significantly contributes towards product success in the market. Only the consumers can confirm the quality of a product. Often product quality is subjective and is formed by the perception of the consumers. Low quality products often incur huge losses for a company. In the event of low quality products, rejection by consumers, fixing errors and handling claims cost a company nearly thirty per cent of its turnover (Kopalle and Lehmann 2006, pg.98). 3. Market Segmentation and Product Positioning When launching a product, the management needs to identify its target audience. Upon identifying the target market, market segmentation needs to carefully conducted through in-depth research. Through market segmentation, a company can identify the potential customer groups as well as identify the most appropriate marketing strategies to be applied. After segmentation, product position is necessary. Mainly, product positioning involves visualizing the product within its target market and consumers. Mainly, product positioning helps in clarifying the preferences of audiences and factors that influence their product choice. Ultimately, product positioning aims at convincing the consumers to prefer the product over other products over and over. For instance, in the automobile industry, Volvo is known for family automobiles while as BMW is known for prestige (Kennedy 2011). 4. Marketing Communications in Product Launch At a basic level, use of marketing communications can possibly be intercepted in two distinct ways. First, marketing communications aims at developing brand values. Traditionally, advertising is known for fostering emotions, beliefs and feelings about an organization or a brand. In this way, brand communication helps consumers to think positively about a particular brand. Such communication helps the consumers to recall and grow positive attitudes toward a brand. Therefore, conclusively, advertising aims at fostering customer loyalty by compelling the consumer to select the product repeatedly due to the positive attitudes that they hold about the product (Wilcox 2013, pg.58). Secondly, contemporary marketing communications aim at shaping behavior rather than feelings. In this era, managerial accountability and short term results tend to be increasingly critical while as investment in brands focus on achieving immediate return on investment (ROI). Consequently, building positive attitudes brands may appear to costly and time consuming. Contrastingly, marketing communications aim at convincing the consumers to behave differently. Such behaviors include online shopping or phone purchasing. This change in purchasing behavior can only be promoted by using messages that provide a reason for such behaviors among the consumers. This strategy is referred to as a call to action. Therefore besides developing positive brand feelings, marketing communications often focus on changing and managing behavior of the target audiences. However developing positive attitudes and changing behavior may not be mutually exclusive. For instance, most of the television advertisements may be referred to as direct response adverts since they not only attempt to create brand value. Such adverts also contain contact details such as phone details and website addresses. Additionally, these communications provide details on a given special offer that may occur as means for sales promotion. Precisely, when launching a new product these approaches can be implemented as a hybrid approach towards marketing communication (Doole and Lowe 2008, pg. 67). 4.1. Corporate Social Responsibility New forms of marketing communication have been identified in response to the ever changing environment and market conditions. For instance, public relations involve aspects of marketing and corporate management. Alternatively, direct marketing is widely acknowledged as a valuable way for fostering close organizational and consumer associations with the buyers. Such strategies require newer and innovative ways of communication such as corporate social responsibility activities and sponsorship of important activities in the community. Also, communications can be conducted through video screens on highways, check-out coupon dispensers, the internet and associated technologies and floor advertising. Precisely, effective communication needs adequate selection and integration of a variety of communication media, messages and tools (Kopalle and Lehmann 2006, pg.130). In this paper, the marketing communication tools that can be involved in launching a product are discussed below. 4.1. 2. Advertising Advertising is largely a form of non-personal mass communication that allows a high degree of control in message delivery and designing. However, the capability of advertising to persuade the target audience to behave or think in a given manner still remains unknown. Furthermore the effect of advertising can be hard to measure by the sales of products. Alternatively, the flexibility of advertising allows for nationwide or segmented audience communications. Despite being highly expensive, the tool of advertising reaches a wide scope of audience. Ultimately, the cost of reaching a single contact through advertising may be is lowest as compared to other tools (Kopalle and Lehmann 2006, pg.135). 4.1.2 Sales Promotion This tool of marketing communication involves various techniques in marketing that can be used to provide value tactically to a product. The aim of implementing sales promotion is to gather marketing information as well as accelerate sales of a given product. Similar to advertising, sales promotion is a non-personal form of marketing communication. However, sales promotion effectively communicates to smaller audiences. Additionally, the costs of sales promotion are and controllable lower as compared to advertising (Kopalle and Lehmann 2006, pg.137). 4.1.3 Personal Selling Traditionally, personal selling may be referred to as an interpersonal communication tool in marketing. This tool involves face to face approaches by individuals while representing a particular organization. This tool mainly informs, persuades or reminds potential buyers and consumers to embrace a particular action as pointed out by the sponsors’ representative. Through this feedback, the salesperson provides consumer feedback on instantaneous basis. However, interpersonal communication tends to be high as compared to other tools (Kopalle and Lehmann 2006, pg.139). 4.1.4 Public Relations Through public relations strategies, a company can establish and maintain positive relationships with numerous stakeholders and also enhance the reputation of the organization. In the contemporary world, public relations strategies are widely used thereby reflecting a high credibility attached to this tool of communication. In this tool, company and product publicity could be created through third party media such as newspapers, news programs or magazines. In this approach, only the production of the material is charged. Additionally, this approach involves giving free lunches or other free promotions. Other tools in public relations include using public affairs, lobbying and event management (Haig 2005, pg. 78). 4.1.5 Direct marketing This tool is widely used in the contemporary world in a variety of approaches as a standard form of marketing communication. Direct communication represents a shift from mass communications to personalized communications. In this approach direct mailing, telemarketing and interactive marketing communications occur as some of the forms fast developing through-the-line communications. Instead of face to face marketing in personal selling, direct marketing involves email communications, direct letter sending and phone conversations. Consequently, the salesmen can be allowed to focus on other areas of expertise. Often, direct marketing aims at delivering personalized information to individual target consumers. Also, direct marketing attempts to build a relationship with the customers by acting on the consumers’ feedbacks (Kotler and Armstrong 2009, pg. 146). When selecting the communication tools to use for launching products, organizations need to use criteria that can be used to determine the best tool. The key characteristics that could be used include 1) The amount of control that can be exercised during message delivery 2) The availability of financial resources necessary for paying third parties to transmit the message 3) The level of credibility associated with the tool selected and how it reflects the organization 4) The geographic spread and size of target audience 5) The level of accountability pertaining to how a tool contributes towards sales 5. DRIP Model A paper presented by Bowersox and Morash in 1989 made a significant contribution towards marketing. In the paper, the authors discuss the flow of information in marketing. Primarily, such network in the flow of information aims at satisfying the wants and needs of the customer. Through marketing communication, an organization may achieve four primary tasks. First, marketing communication informs potential customers and creates awareness on the products offered by the organization. Secondly, marketing communication aims at persuading current and future customers to establish an exchange relationship with the organization. Thirdly, communication in product promotion marketing can be used to reinforce product experiences. Here, the communication reminds the consumers of their needs. Also, communication can be used to remind the consumers on the possible benefits of previous transactions while persuading them to maintain such experiences and relationship with the organization. Through this approach, the organization can provide reassurance and comfort upon purchasing the product. This strategy maintains the current customers and also improves profitability of the company since customer loyalty is much more cost effective as compared to acquiring new customers repeatedly. Lastly, marketing communications acts as a differentiator. In competitive markets, the distinction between brands tends to be thin. However, customers make purchasing resolutions based on the communication around a brand image. Adequate marketing communication builds purchasing confidence and positive attitudes in consumers. Conclusively, the authors noted that marketing communication informs, persuades, reinforces and differentiates (DRIP) products and services while focusing on the product brand and image (Kennedy 2011, pg.76). Conclusion As discussed above, a product can either be a service, an idea, an event, a physical object or a mixture of two or more of these elements. In product launch, the management of an organization is required to identify a target market first. Secondly, the organization is required to determine its product promotion strategies. As discussed above, such strategies include market segmentation, branding and adequate marketing communication to existing and potential consumers (Doole and Lowe 2008, pg. 67). References BOWERSOX, D. J., & MORASH, E. A. (1989). The Integration of Marketing Flows in Channels of Distribution. European Journal of Marketing. 23, 58-67. DOOLE, I., & LOWE, R. (2008). International marketing strategy: analysis, development and implementation. London, Cengage Learning. HAIG, M. (2005). Brand failures: the truth about the 100 biggest branding mistakes of all time. London, Kogan page. KENNEDY, D. S. (2011). The ultimate marketing plan: target you audience! Get out your message! build you brand! Avon, Mass, Adams Business. KOPALLE, P. K., & LEHMANN, D. R. (2006). Setting Quality Expectations When Entering a Market: What Should the Promise Be? Marketing Science. 25, 8-24. KOTLER, P., & ARMSTRONG, G. (2009). Principles of marketing. Upper Saddle River, N.J., Prentice Hall. SOLOMON, M. R., DUKE CORNELL, L., & NIZAN, A. (2009). Launch!: advertising and promotion in real time. https://open.umn.edu/opentextbooks/BookDetail.aspx?bookId=23. WILCOX, D. L. (2013). Think public relations. Boston, Pearson. Read More