Marketing Plans for a Manufacturer of Home Computer and a Supplier of Major Computer System - Case Study Example

With reference to the four Ps, describe and compare the marketing plans that would be appropriate for following: A) A manufacturer of home computers. B) A supplier of major computer system for large organization Introduction A successful marketing program of a company depends on the optimal utilization of the Four P’s of Marketing. The Four P’s of marketing essentially broken down into Product, Price, Place and Promotion constitute an effective marketing mix for any organization. Using the marketing tools in relation to designing a product, setting the price standards, selecting the distribution mode and the right promotion mix an organization chooses the focus groups to which it can sell effectively. (Kyle, N.D; The Marketing Mix, N.D) The marketing plan must device a target market based on several demographic factors like age, sex, income groups, educational and professional levels for different demographic patterns have different tastes and preferences. In defining the product, care must be taken to highlight on the several benefits accruing from such by anticipating customer needs and demands. Further, special budget allocation must be done to make the marketing plan a successful event on rightly promoting the product to its target market. While working out on the place strategy customers must be given an idea of the location of the company or shop so as to develop contact points. Further, the right distribution mix must be chosen to make the products reach the customers quicker and safely. In regards to the pricing strategy the company must observe whether the price set helps cover the breakeven point to ensure profits. Secondly, separate pricing strategies emerge for existing and newer products to gain brand proliferation. (Belis, N.D). Essentials of a Marketing Plan An effective marketing plan devised by a company needs the following parameters to be equally addressed. Firstly, the marketing plan needs to develop a situational analysis based on identifying the core strengths and weaknesses of the company. It also needs to peer into the external business hemisphere to understand the opportunities and threats posed by the environment and its competitors. Secondly, the situational analysis must make proper market segmentations to identify the target market of its products. Further, the marketing plan must develop an effective marketing strategy based on market segmentation conducted before. While devising the marketing strategy the firm in relation to its competitors must carry a product positioning activity to understand its position in the total market. Equally important are the activities regarding forecasting of future sales in anticipation of customer demands and also designing budget plan. The later constitute setting of standards over which future business performance is tracked. (Berry & Wilson, 2000: 7-8; Gordon, 2006; The Essential Contents of a Marketing Plan, N.D) Marketing Plan for Manufacturers of Home Computers The manufacturer of personal computers for domestic purposes in order to device a marketing plan must first address it s key target markets. It is observed that the focus groups for domestic computer usage mainly rest on college, home and small to medium businesses. Having identified the key focus groups for sale of personal computers stress is given on devising effective product lines to gain competitive advantage over the competitors. (Macintosh Production Introduction Plan, 1983) Product Specifications In devising an effective product strategy the company must look forward to designing comprehensive sets of hardware, software and computer peripherals keeping an eye on the cost factors. The company in order to make its product strategy cost effective can outsource its software development to external developers. The company can also develop a tutor software package, which can enable the user to learn using the computer without any aid. (Macintosh Production Introduction Plan, 1983) This goes with the Product Development Strategy for conquering existing markets. (Product Marketing Mix Strategy, 2007) Price Strategies In devising the price strategies for selling of personal computers to end users consisting of domestic people residing in schools, colleges and residences the company looks into meeting its cost factors. Each of the several service dimensions starting from delivery, installation, training, and service support must be made chargeable to incur appropriate revenue from the same. (Computer Reseller Marketing Plan, N.D) However, if the manufacturer is new in the domestic computer industry he can also go for penetration pricing techniques. Through Penetration Pricing techniques, the manufacturer can target a larger market base in regards to its competitors. (Pricing Strategies, Pricing Methods, Pricing Strategies in Marketing, Pricing Models, N.D). Distribution Strategies In devising the effective distribution strategies for marketing of personal computers in addition to competing on price and service parameters the company must also look at exploring uncharted markets. In charting uncharted rural territories the company can get additional advantage in selling computers even beyond its existing competitors. Further, the company can also seek external help in devising the training modules for the rural people thus saving on its cost factors. (Singer, N.D). The above statement constitutes the right place mix needed for setting an effective income-generating plan. Further, the Personal Computer manufacturers can look at different distribution options for making huge sales of computer and peripherals. The different distribution options include selling through independent retailers who acquire products on small quantities. Further viable options include selling through retail outlets specialized for selling of computers. They acquire products on huge quantities and are mostly visited by prospective buyers. Thirdly, dealers specializing on sales of office accessories like typewriters, Xerox machines and other office equipments can be contacted for generating the sales. To save more on distribution costs the manufacturer can even think of conducting sales by acquiring his shop. However, a cost benefit analysis must be conducted before acquiring a shop space. Moreover, electronic and catalogue outlets can also be contacted for generating effective sales for they focus on sales of likeminded gadgets and electronic pieces. (Farner, 1977) Promotion Strategies The manufacturers of domestic computers can think of several promotional tools like taking the aid of local newspapers or in participating in above the line activities. The Above the Line activities can consist of promoting their products and services through radio and television channels. (Narula, 2010) The company can also generate talk shows on televisions promoting the advantages and benefits in using their products in comparison to existing product lines. Further, they can also arrange seminars to encourage public participation in their promotional programs. This also enhances customer loyalty. (Computer Reseller Marketing Plan, N.D) Having analyzed the marketing strategies for domestic manufacturers of personal computers depending on the Four P’s of Marketing the paper now shifts its focus to analyze the marketing plans of Big Suppliers of computer systems based on the same approach. Marketing Plans for Supplier of Major Computer Systems for Large Organizations Big computer manufacturers supplying computer hardware to large organizations target low cost strategies by eliminating the intermediary concept. By eliminating the intermediary concept the manufacturer helps save money which it divulges on research and development by making desired models of computers and thereby generating revenues. As with other firms they also devise marketing strategies focusing on target markets and enhance better customer relationship to generate customer loyalty. (Dell Marketing Strategy, N.D) Product Mix The big computer manufacturer and supplier must have a wide product and service line encompassing computers, laptops, consulting services, software structures, server machines, storage and mainframe models and other hardware components. Further, the company can device its laptop segment as substitute to desktop computers, which may turn out to be heavy. Portable laptop devices constitute the major part of this segment. More modern models can be developed which will turn out to be extra lighter and hence would draw customer attention. (Marketing Plan of IBM Laptops Thinkpad Series, N.D) Price Mix The big computer manufacturers and suppliers can produce bundle packages for large corporations which includes licensing fees, delivery and installation charges and after sales services. Moreover an extended customer service package can be made by the supplies which includes problem solving, software up gradation, online support and maintenance aides besides existing services like customer support schemes. This would mean economical to the viewpoint of customers and also help the suppliers in marketing their products at effective rates. (Telecom Products Marketing Plan, N.D) Promotion Mix The big computer manufacturers can settle for effective promotion mix by arranging price or value discount models over the purchases made. They can also go for delivering huge quantities of products through Bonus packages. Computer carnivals can also be organized at certain time intervals, which encourage contests and ‘sweepstakes’ thus gathering customer attention. The big computer suppliers and manufacturers can even conduct loyalty programs by giving discount cards to regular buyers and visitors. The loyalty program can even be extended to give additional free services to the customers and also giving special discounts in regards to company anniversaries. Moreover Public Relation tools can also be used for generating further promotions and in gathering large customer base. Public Relation tools like Press Releases, conducting of Mega Events through media cooperation and through other publicity campaigns help in gathering huge customer base. Further, databases of prospective employers can be maintained for practice of Customer Relationship Management (CRM) techniques which enhances customer loyalty. Direct marketing tools like sending direct mailers to customers is also considered to be an effective practice in gathering customer attention. (Elements of the Promotional Mix: The Advertiser’s Trusty Tools, N.D). In regards to modern marketing and promotion tools the use of website is highly recommended in addressing to a remote base of customers. The use of website can be seen as a public relations enhancement tool through which customers can gather needed information in times of need. This helps in enhancing customer loyalty by creation of mutual trust among each other. (Kundi, 2008) Distribution Mix In regards to an effective distribution system the big computer suppliers can use the Just In Time distribution systems. The use of Just in Time distribution systems helps a business corporation to reduce wastage of time and resources and enable them to meet growing customer demands. Moreover the use of Internet and Telecommunication modes also help in creating proper distribution channels to address customer queries and needs. (Thinking Made Easy, N.D). in this regard the distribution mix of Dell Inc. can be studied. Dell in order to gather a stronger market base shifted from the traditional distribution model to distribution via telecommunication. The traditional distribution system encompassed expensive and specialized dealer network, which helped the company in serving the customers by providing them, needed training and service facilities. Being expensive, the network channel slowly turned redundant as business dimensions grew to gather larger markets. Through the telecommunication modes orders are taken over the phone according to the desired needs of the customers. Products are then assembled to be dispatched within the required time. This being a practice of Just in Time concept helps in reducing stock piling. This in turn reduces working capital blockages and wastage of resources and time. Customer in turn feel equally satisfied with the service offered which helps in augmenting the profits of the company through enhanced customer satisfaction. (Achieving Competitive Advantage Through Sales and Distribution Strategy, N.D: 4-5). Conclusion The Marketing Strategies for small manufactures and big computer suppliers have been dealt with separately depending on the Marketing Mix. Effective use of marketing mix network involves the optimal use of product, price, place and promotion tools in gaining leverage over existing competitors and thereby gathering a huge customer base. In order to gain the most from marketing plan strategies must be incorporated to focus on the target customer base. The focus groups being made clear effective marketing plans are devised based on the four P’s of marketing. The product strategies involve setting the right production mix and creating effective product specifications to help inform the customers at hand. Secondly, pricing strategies involve setting the right price technique for existing and newer markets. The price strategies involve creation of effective product packages or bundled packages, which turn economical from the customer’s viewpoint. Setting the right distribution strategies involve exploring newer markets and taking the aid of modern distributional channels like telecommunication and Internet for better marketing initiatives. Finally, the promotion tools need to be rightly identified to help target a large customer base in much lesser time. Other than the traditional promotion activities like giving discounts and rebates special initiatives can be taken through Public Relation tools. Press releases, conducting of seminars and mega events help to create customer hype, which turns beneficial for the firm. References 1. Kyle, B. 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