Promotional Strategy for Electronics Customised Cell Phones - Essay Example

Page Marketing Strategic Plan Sub Promotional Strategy for Electronics customised cell phones Matriculation Number: 21/5/2010 Word Count: 2092 CONTENT LIST Page Nos. 1. Title Page............................................................................................................1 2. .Content List.......................................................................................................2 3. Summary............................................................................................................3 4. Background Information – Marketing Opportunity.....................................3 5. Introduction to the Product.............................................................................4 6. Integrated Marketing Communication..........................................................4 7. Promotional Strategy.......................................................................................5 7.1 Internet Marketing....................................................................................5 7.2 Print Media................................................................................................5 7.3 Mixed levels of Integration........................................................................6 8. Public Relations, Direct Marketing and Personal Selling Plan...................7 9. Marketing Distribution & Channel Analysis.................................................8 10. Pros of using Agents, Brokers and Representatives......................................9 11. Cons of using Agents, Brokers, Representatives............................................10 12. Recommendations............................................................................................11 13. References.........................................................................................................12 3. Summary A marketing opportunity is found existing for developing a marketing strategy for customised cell phone, a new product in electronics industry. Before introducing the new product, it is necessary to develop a marketing strategy keeping the features of the customised cell phone in mind. Intensive research conducted on integrated marketing communication for introducing the product requires a promotional strategy that includes a number of media platforms to promote the customised cell phone. Discussion on internet marketing, print media, integration of different media and analysis of marketing distribution channel is made to zero-in the suitable promotional strategy for the product. Pros and cons of using agents, brokers and representatives are considered before making recommendations on distribution strategy. 4. Background Information -- Marketing Opportunity Electronics industry is ripe to welcome the new product that would be launched very shortly, which is customised cell phone. A marketing opportunity study was made on developing a new product for the existing market of cell phones. Cell phones of popular brands have limited features. Customers are fed up of the popular brands tactics of providing new technology features in latest range where something is always left to be desired and not fulfilled by the mobile phone companies. Only customised cell phones can be the solution to satisfy the customer needs with an innovative product with dependable services can be the best available means to capture the market well in time when the idea is still new to capture the cell phone users’ attention. 5. Introduction to the product What is a customisable mobile phone? A customisable mobile phone is a built-to-order phone that comes with the feature of snapping the unwanted functionality or adding the functionality as per the customer demand. It could be a GSM phone to be customised or the other. The customer will decide whether the phone should be touch screen, bar, flip or smart phone; whether it has a keyboard or the customer prefers a mobile phone without a keyboard. The customised mobile phone will offer the customers the choice to select the operating system of their choice from Google Android, apple, OS X or Microsoft and others. As per the marketing research plan, customised mobile is such an opportunity that can be instrumental in offering a cost-effective mobile phone of high quality. Customers would have the freedom to choose their preferred service provider; no need to subscribe to a particular service provider. The custom-ordered mobile would be available with warranties, after-sale service and repair (Elgan, 2008). 6. Integrated Marketing Communication Under the concept of integrated marketing communication (IMC), which is a holistic approach to market communication, a promotional strategy needs to be developed for customized cell phones. For promotional strategy, both online and offline marketing channels should be used. Promotion is an important element of marketing mix for developing an integrated marketing communication program for 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. 7. Promotional Strategy As stated, promotional strategy needs 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. 7.1 Internet marketing Internet marketing can help in attracting new customers from the social media sites like Face Book 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 favourite programmes are run on television channels. At the same time, using SMS as means of advertisement to the target audience telling the features of customised mobile phones 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). 7.2 Print Media Print media like radio, television, newspapers, and billboards are components of offline media. Marketing effort should combine both Medias in advertising the new product, customised 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 customised 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 product (http://en.wikipedia.org/wiki/Integrated_marketing_communications). 7.3 Mixed levels of Integration Other levels of integration should be used like Horizontal, Vertical, Internal, External, and Data integration. Through Horizontal integration, promotion can be integrated with business functions by developing cooperation on marketing strategy among 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. A marketing information system is needed to gather and analyse the related data across different departments. 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 like advertising and PR agencies so that message reaches and touches to the hearts of relevant audiences (MMC Learning, 2009). 8. Public Relations, Direct Marketing and Personal Selling Plan Nothing can be a better option than developing a marketing and sales plan based on a company’s existing strength of public relations. It seems to be more relevant for two reasons. First, the product – customised 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 customised cell phone can be explained to prospects better way by the company personnel. 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 (Patsula Media, 2001). 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 realisation 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 (Patsula Media, 2001). Sales people 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 can be used in the sales realisation of the new product. Existing data of the company can be used to the benefit of the company by introducing the product – customised cell phone – to the old customers of the company. This strategy implemented smartly can help retain the old customers for customised cell phones as well. At the same time sales expansion to new areas should be made by recruiting new sales people to the old territories and sending experienced sales staff to new locations. The company should attempt covering big cities first, as scope of selling customised cell phone is greater there. Expansion can be accomplished after a time interval in smaller towns and cities through the company’s sales team (Patsula Media, 2001). 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 personalised 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 (Patsula Media, 2001). 9. Marketing Distribution Channel Analysis For distribution of the new product, the selection of right distributor should be thoroughly considered. Analysis needs to be made on Cost of Distribution Method vs. Services Provided. Value-added services of the distributor need to be analysed before taking a decision on the right distributor. Type and number of customers could be diverse to use the retailer’s services. As the customised cell phone is a new product, it should be considered to sell the product by the company’s own marketing efforts. As the market is not concentrated being a new product, for scattered market, the services of a wholesaler and retailer should be taken. A customised 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. 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, a distributor 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. 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 customised 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). 10. 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 provide a brief on the market behaviour 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 behaviour 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 company efforts alone Company can benefit from their recognition by the customers 11. 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 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 They have to be paid generous and timely commissions (Patsula Media, 2001). 12. Recommendations After analysing the basic distribution channels, a 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 realisation 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 realisation capabilities at the same time for selected territories. Reference Elgan, Mike. (11 February 2008). Who wants a custom mobile phone? Available from: http://www.computerworld.com.au/article/205530/who_wants_custom_mobile_phone_/[accessed 20 May 2010]. MMC Learning. (2009). Marketing communications. Available from: http://www.multimediamarketing.com/mkc/marketingcommunications/[accessed 20 May 2010]. Patsula Media. (2001).The Entrepreneur’s Guidebook Series. Available from: http://www.smbtn.com/books/gb71.pdf [accessed 20 May 2010]. Wikipedia (16 March 2010). Integrated marketing communications. Available from: http://en.wikipedia.org/wiki/Integrated_marketing_communications [accessed 20 May 2010]. Read More