Throckmorten Furniture - the Buying Process Model and Price Value - Assignment Example

A case study of Throckmorten furniture Qiuestion1 The buying process model The buying decision is usually a complex one and it culminates from the way the sales process is done. The sales process itself is not very important but the way the buying process on the side of the customer is undertaken is the one that matters a lot1. It is not usually an event but an instantaneous process by which the customer is able to identify and makes that final move for the furniture. Throckmorten furniture makes sure that the customer is aware that there is need for a specific type of product from the company. Staring form the ten employees employed by the company, the sales process provokes the buying process. The buying process generalized model There is a generalized buying process model that has been used by Throckmorten furniture for the last two years. It first starts with a suitable promotion strategy then the ball is drawn to the court of the customers for them to begin the buying process. When that is done, which is mainly through sales and advertisement programs, the search begins for the right furniture. Once the customers for the furniture begin to search and explore avenues with which they can find the furniture that meet their needs, then it will be possible for Throckmorten furniture to come in and convince them to buy the furniture. In the process of gathering the relevant information from the manufacturers, the customers will in most cases evaluate their criterion for buying the furniture. Since any decision that affects the move to purchase the furniture and make narrow alternatives that can be chosen from the ones available from the market is key to the buying process, then more emphasis must be placed by Throckmorten Furniture Company on this. When the customers get that final alternative, they make the decision to purchase and that is not usually the same as the actual purchase of the product. Until the customer buys the furniture, Throckmorten furniture cannot assume that the buying process is complete and evaluated2. Qiuestion2 Market values can be defined as the concepts invoked in disequilibrium situations and where markets are inefficient and also in cases where market prices do not reflect the actual market value for the product. In the case for Throckmorten furniture, the market values that this company has been able to fulfil are; Performance value The performance of the furniture in the market has generally been very impressive as customers have been able to buy the wood products because of its performance value. Every customer would want to buy something that has been proved to be performing in the market and that it what has happened in this company. Price value The prices of the furniture have been generally affordable to the customers since The price value has been considered to be strategic in that ion 1999, the company was able to achieve a before tax profit of $3.7 million. The prices have not been very high and not very low to cause loses but it has been somewhere fluctuating from medium to high. This strategy has been well fulfilled by this company. Use value The use value is a term used to indicate and measure the effectiveness of the product in the market. So far, Throckmorten has been able to fulfil the use value through point of sale promotions and outdoor campaigns that are intended to showcase how the furniture can meet the needs of the customers. The furniture from Throckmorten is medium to high priced wood products for the living and dining rooms. The use value in terms of customer appreciation of the products has been fulfilled especially since the period of Bates assumed the office of the presidency of the company. Quality value The quality value needs to express clearly when talking about market values. It involves the examination of the value of the product in terms of its quality. Despite the fact that Throckmorten sells its furniture through 1,000 high quality department stores, the stores do not carry the company’s tine hence the quality value is upheld. Question3 Market values that still provide opportunities for the company Although the company has been able to fulfil most of the market values, there are still some open opportunities that can provide better market potential for the company. They include; Going concern value-Throckmorten has been able to fulfil the going concern value in that it has been able to sell the product as an aggregate value. In essence, the going concern value advocates for the expansion of market research in order to gather enough information as possible concerning the needs of the customers and how they can be handled. Throckmorten furniture can make unique designs that can meet the unique needs of the customers3 Consumer confidence-The consumers for this company are highly cynical about the way the furniture can actually be appreciated by them. This can be directly linked to the costs of the furniture. This is because wood furniture is normally very expensive and hence they are sold in sets only especially when it is considered that such purchases are deferrable Disposable income outcome-As consumer disposable income contuse to grow year by year, the prices for the wood furniture will continue to rise beyond the retail price. Economists believe that the industry will experience high levels of fluctuations in the next two years. Question 4 Analysis of how customers buy furniture Customers buy furniture depending on how the manufacturing company has advertised them. Advertising is one of the tools which are effectively used to reach a target population especially when launching new brands, getting into new markets or promoting special offers. Throckmorten Inc has used advertisements especially those inline with office and house furniture specified in the guidelines of Throckmorten4. Throckmorten furniture uses the following advertising mediums; Use of billboards Improved public relations Special offers i.e. reduced prices Television marketing Using celebrities or respected personalities in the U.S Going by the figures provided by Throckmorten furniture, the company has been able to use at least $ 995,500 for sales expenses and administration while trade and consumer advertisements had cost the company $ 467,000 and $ 62,500 respectively. Advertisements are always used to create awareness for Throckmorten furniture to the consumers so that the company may gain responses from their target markets especially when dealing with a new market. There are many other advertising mediums available and which include print; newspapers, journals and posters, electronic; television, internet and radio modes of communication which we may choose to create awareness of Throckmorten Furniture products to their consumers. Another important medium of advertisement is internet form of marketing that has recently become one of the forms of marketing that is utilized more effectively to reach more people. Sales promotion programs are programs and strategies which are intended to woo the customer to buy the product especially when launching a new product. The sales programs are developed by the sales team with a view to meet the marketing needs of the company. The most successful programs done by the company is the use of a sales promotion software that contain tools and information that is required to promote the furniture. Throckmorten Furniture uses the software to maximize sales especially when dealing with industry to industry business. Promotion is an attempt to influence the buying habits and behaviour of an individual. Successful promotion programs include the communication tools that are required to pass the message from the sales force to the target customer. The programs may include; direct marketing, public relations or advertisements5. Point of sale promotion comes in various forms; personal selling, publicity, sales promotion or advertising and it refer to the various methods of convincing the customers to buy the brand, product or services offered by the company. Promotion is an important marketing tool which is commonly used to market new furniture in a market that is new especially that is far from the production point. Promotion processes requires huge investments especially when it comes to advertisements. Any promotion for a product that is already known by the customers is not very expensive as such. The distribution channel employed by Throckmorten Furniture is many but depends on the market and location of the customer. A channel of distribution is the sequence of activity which includes how the company moves its product from the production to the place where it is consumed. Throckmorten Inc has come up with various channels of distribution to enable their furniture reach the targeted market. The company has employed the use of wholesalers and other sales groups to distribute the computer hardware to other areas where it can not economically reach through its sales and marketing team in the place of production Sometimes it either uses the direct or the indirect channels to supply to the consumers directly or through retailers not far from the production point Conclusion In summary, the main steps that are usually followed during the buying process can be generalized as; identifying the need, searching for the product to meet that need, evaluating the available options from those in the market to ascertain the best, making that bold decision to buy the furniture, actual purchasing of the furniture and revaluating the use the product when it has actually been bought. The market values that have been fulfilled by Throckmorten include price value, quality value, use value and price value. Those values that still provide a good opportunity for the company include going concern value and customer satisfaction. References American Society of Appraisers, (2005): Valuing Machinery and Equipment: The Fundamentals of Appraising Consumer Behaviour, 2nd ed., Tony Publications John A. K. (2001): Market Value(s) by presented to the Appraisal Institute, 2001 Dictionary of Real Estate Appraisal, 4th ed.Chicago: Appraisal Institute Jennifer L. (2004): Best Furniture Buying Tips Ever! The buying process; Harvard University press, Harvard. Kathie, L. G (2007): Throckmorten Furniture, Inc. Case Study. Home Furnishings Council Read More