Pricing Pricing is key component in the marketing mix and is the primary factor in developing long-term brand recognition and initiatives. With today's economic environment, though strategies employed for properly priced retail product lines will determine if Global Gadgets will build a reputation for long-term or short-term success. When introducing a new sector in the market tactical price promotions are a valuable tool in winning market share and expanding corporate and product brand loyalty. The three key components is determining the quantitative amount of the specific product lines versus the cost within the distribution channel. Overall financial is gross profit through providing the products and services and the perceived value of consumer benefit when purchasing the products (&quot;Pricing your products and services,&quot; 2009). Consumers today are looking for value added benefit and convenience when making purchasing decisions. Promoting with a strong pricing strategy requires competitive research for product comparison within similar sectors. Once this knowledge has been attained a full comparison and price structure versus competition will indicate the limits on which consumers are willing to pay when purchasing (&quot;Pricing your products and services,&quot; 2009). Therefore a swot analysis is required when building a pricing structure to be competitive within the marketplace and gaining market share.
Pricing SWOT Analysis A swot analysis provides an internal and external view of the strengths, weaknesses, opportunities, and threats for global gadgets when developing a pricing structure. The strengths and weaknesses provide an internal observation on the corporation's foundation within the market and the potential weaknesses that could deteriorate gaining market share. Externally, it is important to benchmark competitive practices of those organizations within the same sector. This will indicate the opportunities available and provide a pricing structure that will suit consumer demand for gaining additional market share. It will also indicate the tactics used by the competition and the perceived threat that will be exposed when Global Gadgets expands into this new sector of housewares. Strong research and benchmarking will provide the strategies that are necessary for all product life-cycles including merchandise initiation, cost incentives to maintain brand loyalty based on demand and the eventual termination of the campaign lifecycle
Pricing Internal SWOT The strength of Global Gadgets is that it has geographic recognition with 11 brick and mortar facilities and has recently developed an Internet website was a secure intranet portal for additional consumer research and transactions. Since 1992, Global Gadgets has developed a strong reputation in a house decor sector, developing a strong loyal consumer base and brand identity. Each retail outlet provides an indication for target marketing and indicates the psychographic segmentation required to develop additional brand loyalty with the introduction of housewares at these locations. The Internet website provides the consumer with the added convenience of a product catalog and making transactions through a secured socket layer to protect individual identity and prevent potential fraud. The Internet website also provides the opportunity of maintaining and expanding market share with present and future consumers when they relocate to a different geographic area. Internally the weaknesses of the organization are as follows, when introducing new product lines in a different sector consumers still need to be convinced that the products and services must not only meet demand a plus to meet the cost expectations by the consumer to remain competitive. The organization does not have a firm grasp on overall estimated sales volume and therefore cannot firmly predict an accurate return on investment. Brand loyal consumers understand the performance capabilities of the products offered in the home decor sector. Price incentives are required when targeting the existing brand loyal consumer which will alter potential profits. Secondly, the introduction of a new sector will require development of new brand loyal consumers who are already faithful to market competitors. Each layer of the distribution channel will require an investment for support and will add to the maintenance of measurement throughout the entire organization (Danca, 1999).
Pricing External SWOT External threats for pricing strategies come from direct competition of big-box retail distributors and manufacturers. Housewares are offered in all large chain department store locations from exclusive product lines to economical product lines. Exclusive product lines are offered at Williams Sonoma, Macy's and other regional outlets for high-end appliances, utensils pots and pans. Middle-class and economical distribution will force you will gadgets to compete directly with Wal-Mart which bases full pricing on purveyor volume in customer demand. Best Buy, Target, Sears, Kmart, Costco and other wholesale distributors provide a different level of external competition that must be constantly monitored. These organizations provided an aggressive level of consumer pricing structures offering constant incentives including closeout and value added incentive pricing discounts. These organizations are also positioned in highly visible retail locations; Global Gadgets must monitor their activities and provide fast acting solutions when the pricing structure is threatened
Pricing Strategy Matrix The key factor in determining pricing strategy is consumer demand based on the segmented demographic that matches up individualized based, consumer income and the availability of competing products in regional locations. If there is an overabundance of product, then competitive strategies will change based on inventory and levels of profitability. The most important factor is that there is a complete understanding in determining the amount of sales needed to cover the total expenditures through a break-even analysis. A break-even cost structure is determined to by the following formula: Break-even in Units = Total Fixed Cost ÷(Unit Price-Unit Variable Cost) (Ferrel & Hartline, 2008, pp. 227-231). When determining how to calculate the actual sales price, cost-plus pricing is a common retail strategy is to include the average markup percentage with the following formula: Selling Price = Average Unit Cost ÷ (1-Markup Percentage) (Ferrel & Hartline, 2008, pp. 227-231). What must be remembered is that the law in regard to slot a price strategy is totally dependent upon supply and demand in association with consumer trends and buying patterns. Pricing strategies are based upon consumer expectations for performance and gaining value emotionally through their purchases. In the second example of a break-even cost-plus strategy there is an inherent weakness as industry wide buying trends provides a significant determination in the markup range. Break-even and cost-plus pricing are strong tools but they cannot be considered a primary factor in a pricing strategy. Setting costs based solely on price provides the risk that the pricing structure is either too high or too low and creates psychological influences but the average residential consumer (Ferrel & Hartline, 2008, pp. 227-231)
Pricing Strategies & Objectives Pricing strategies are based upon maximizing short and long-term profit, in a consumer driven market the objective is to gain as much potential income from the sale of an individual product even when fewer consumers may opt to make a purchase. This is particularly true in the short-term process as exclusive or premium pricing is a strategy that is implemented to gain maximum of fact for profit liquidity. Fewer customers also translate into less potential problems you may encounter and this is a successful strategy when an immediate impact is needed. Many customers feel that products that are excessively discounted not only cheapen the price but also as an indication of the performance of the product (Wilson, 2000). Premium pricing is a form of psychological pricing and is used by corporations react upon emotional need rather than complete rationale. And the housewares industries high-end competitors such as KitchenAid have developed a standardized reputation with a loyal brand consumer who was willing to pay more for their product because of the expected performance. Premium pricing and the psychological makeup of the consumers are predetermined as consumers have a preconceived notion of product performance and are willing to pay for the reliability of each product. Therefore, KitchenAid can easily maintain its existing brand loyalty and gain market share with less new consumers in the marketplace to maximize pricing profitability.
Pricing Strategies & Objectives Penetration pricing is a tactic that is used by many big-box retailers and manufacturers by setting an initial low exotic price to make an immediate impact with a mass-market. This pricing structure is designed to directly compete in game market share versus its competitors and is very effective when entering a market sector where products and services are price-sensitive (Wilson, 2000). Oftentimes, corporations will use a loss leader to gain the emotional interest of the potential consumer and up sell those to higher profit items. Corporations that have strong levels of brand loyalty use this tactic was a consumer base that has a history of purchasing multiple items in each transaction. The key determining factor is that once levels of market share are satisfactory the cost of gradually increased. Another tactic frequently used in penetration pricing is product bundle pricing as additional products are collected together to maximize impact. It is also a tactic that is often used in economy pricing were old for discontinued product lines are packaged together to eliminate inventory (&quot;Pricing strategies,&quot; 2009).
Pricing Strategies & Objectives Skimming is a tactic often used by Apple and product lines that are new or improved are introduced into the marketplace artificial high prices charged to the initial consumer. This happened when Apple introduced the iPhone as an artificially high price was initially set and within three months is artificially lowered by $200 once research and development demands were satisfied. Skinning is a tactic that maximizes profit capabilities and slowly recedes as the lifecycle of the product matures and competitors enter into the market sector offering similar features and benefits at a lower scale. Based on perceived value and reputation skimming pricing strategies have many commonalities with premium pricing structures. By charging a premium dollar for product at initiation of the campaign consumer volume is not a determining factor. Profits are relatively high and with no competition can remain at these levels for an indefinite period (&quot;Pricing strategies,&quot; 2009). It is only when investment demand or consumer demand changes to outside influences that in the relatively small increments prices are modified to market conditions.
Pricing Strategies & Objectives Over the past decade corporations such as Wal-Mart and Kmart, Dollar Tree and Family Value have made significant impacts in economic base pricing strategies in business to consumer relationships. Wal-Mart and Kmart as well as similar retail distributors based their cost strategies upon volume discounts received from the manufacturer that are passed along to the consumer. Their place and advantageous position in the marketplace has often times they dictate to the purveyor of size and packaging of the products that they will offer in their outlets. Artificial low-price increases market share and maintains profitability due to the overall volume of consumer transactions versus individualized cost targeting strategy. It is based upon the economic conditions that targeting consumers who frequents their establishment can afford and the expected demand for the product that can be realized. These pricing strategies offer no-frills, however, many times these operations offer product line pricing and provide a range when packages are bundled together (&quot;Pricing strategies,&quot; 2009). Competitive pricing is a major component in economy pricing projects as retail or wholesalers provide a benchmark for competitors own pricing structure. Prices generally are slightly below or slightly above the same average and are dependent upon how the corporation positions itself in the marketplace. In the earlier swot analysis this is the perceived threat that big-box organizations have maintained strategic and positioned advantages in the retail market (Kyle, 2009)
Pricing Target Audience Housewares and home decor are primarily dominated in purchasing decision by the female consumer. Over 70% of the household decisions are made by women as even in the two income family female assumes the responsibility of house decor as well as the appliances and components in the kitchen. Focus groups will indicate that there is a three tiered demographic which Global Gadgets can focus their pricing efforts. Single or married female between the age of 25 and 35 can be expected to become brand loyal consumers. Angle or female consumers between the ages of 35 to 45 generally have started to develop a relationship as a brand loyal consumer and offer an outstanding opportunity to increase market share in the housewares sector. This segment offers the greatest possibility of expanding the new consumer lines, maintain branding corporate identity and providing the opportunity for additional Internet activity in purchasing and catalog positions for the future. The final demographic is for individuals from the ages of 45 and older, these are long-term established relationships which have become set in their ways and our brand loyal to many housewares competitors. Secondly these individuals have customary habits with an overwhelming majority that does not use the Internet as a primary resource. Only traditional print and broadcast media campaigns will be effective for maintaining and gaining market share in the housewares sector.
Pricing Targeted Pricing The strongest strategy in pricing that will make a significant impact on expanding the brand loyal consumer and introducing new consumers to the market sector will be through the use of penetration. Prices have the opportunity to be adjusted in the future to increase overall profitability. What must be understood is that the introduction of a new sector requires price incentives that offer a significant value to the emotional need of the household consumer. In these economic times consumers tend to be pragmatic and are searching for the greatest performance and product capability meets those emotional needs when cost factors are within the limits of their budget. As economic times improve in the corporation gains in new brand loyal customer’s prices can be moderately adjusted to acceptable levels. Value added incentives based on an understanding of house decor sector performance will transform the brand loyal consumer of Global Gadgets into the housewares sector. This provides the opportunity for Global Gadgets to increase the frequency and transaction between these individuals, gain referrals and expand market share of the new product lines to future customers.
Profiling Psychological Processes & Focus Group Benefits In our marketing plan, based on previous information that we have provided to GGI about the target market and various segments (with descriptions of the lifestyles and demographics of the segment), we are determined to gain more market research on our target customer. Profiling helps us understand how customers make buying decisions. Although, we must profile the customer buying-decision process, four main psychological processes affect consumer behavior: motivation, perception, learning and memory (Kotler & Kelley, 2009, p.178). A motivated person is ready to act. How she acts is influenced by her view of the situation. Perceptions affect consumers' actual behavior. Learning induces changes in our behavior arising from experience. All the information and experiences we encounter as we go through life can end up in our long-term memory (Kotler & Kelley, 2009, p.162-165). We are asking that a focus group is formed to get additional information. Information leading us to understand how to earn more with information from existing customers, apply customer service methods to improve profits, identify extra add-ons to make more profit, and the principles behind an incremental approach to corporate growth. In analyzing the customer's behavior by profiling is useful to distinguish &quot;what&quot; is bought in the market and &quot;why&quot;. By &quot;what&quot; is meant the type and amount of products purchased, the place, the pricing, the frequency of purchase, etc., because this reflects buying trends (Stapleton, 1998). By &quot;why&quot; is meant an explanation of customers &quot;buying behavior for which there are two theories (Stapleton & Thomas, 1998). Rational customer theory assumes that customers buy to maximize their satisfaction or utility (Stapleton & Thomas, 1998). The other theory, however, refers to the socio-cultural consumer whose attitude and behavior is governed by his or her background, that is to say, family, work, culture, etc. (Stapleton & Thomas, 1998).
Profiling Customer Profiling and Focus Groups A focus group can help GGI by profiling the customers. A customer profile is a detailed set of characteristics, demographics, usage patterns, tendencies, and behavior maps that summate each type of customer who is likely to use our product. The customer profile is used to inform the marketing plan, in that it helps determine the feature set which will be of most use to the targeted profile. The focus group will survey the customers through interviews at the sight of purchase, and survey the customers using the internet to purchase our product. We expect the focus group to provide us with the answers to five questions: 1) What feature must our product have to succeed? Feature specification is very important in a market plan. 2) How should GGI implement its product for the target users to use it? One of the determinants of a product's quality is how it is implemented. Platform, core technologies, distribution, support options, and user assistance all play into whether or not a product will be compelling to its target users. 3) How and where do our users shop for our products? We need proper alignment with our customer shopping behavior. 4) How much are they willing to spend? We need proper alignment with our customer spending behavior. 5) What compels the target customers' purchase decision? By responding to advertisement we can increase our product's success. Once we have answers to all of these questions, then we will combine the feedback from in-house sales, development, and management teams to come to a conclusion.
Objectives Packaging involves the act of designing and producing a first impression for the customer including, literally, the container for a product. Well-designed packages build brand equity and drive sales, as it is the buyer’s first experience with the product. Packages are the cause of instant recognition of the company or brand such as a red Coke can or the simple Apple logo. Unique packaging may also bring benefits to the customer such as resealable openings. The purpose of packaging is to achieve objectives including identify the brand, convey descriptive and persuasive information, facilitate product transportation and protection, assist at-home storage, and aid product consumption (Kotler, & Keller, 2009).
Packaging Considerations Experts warn that repackaging must be a gradual change but in the case of Global Gadgets Imports , bold moves are necessary in a time of crisis (Hall, 2009). Proper planning and budgeting must take place to ensure an effective campaign and promote brand awareness in the future. That being said, strategic packaging must appeal to the appropriate audience. A way to profit from year round advertising is to tailor packaging for each season. For example, in-store products will have special Holiday Season-inspired packaging during the winter months and shipped products the same. With available technology, such production variations will only marginally affect packaging costs. While particular packaging is being carried out on various products, it is important that GGI keep their website consistent with special promotions and holiday themes.
Packaging Labeling Labels often become outdated and need adjustments. It is not uncommon for labels to be altered often as Ivory soap has been redone at least 18 times since the 1890s, with gradual changes in the size and design of the letters (Kotler, & Keller, 2009). GGI must legally include a label that identifies the product or brand, grades the product, describes the product, and promotes the product through appealing graphics. This includes hazardous warnings on kitchenware, operating safety information, brand distinction, and attractive designs for special promotions.
Partnership Sun Brand Solutions GGI is looking to join partnership with a business that is compatible to its company and products. By finding the right partnership, GGI will be able to sustain it position with the low marketing budget provided for them, and GGI can excel in the house-ware market. A company with a highly recognizable brand will be a great asset to GGI as long as both parties are in agreement with how they conduct business. I suggest that GGI join in partnership with Sun Brand Technology, known as &quot;SBS&quot;. SBS offers the very best in expertise, technology and experience with a successful track record to prove capabilities. If GGI is looking for an integrated brand design packaging consultancy, then Sun-Branding Solutions can be a great assets to our company. Since we have already presented what is required for packaging, SBS covers every aspect of our brand building and brand strategy including the initial design strategy, packaging technology solutions, color management and brand positioning. The holistic approach is one that ensures the integrity of any brand needs from artwork and packaging design through to print management, reprographics and even trademark protection, web designs and e-commerce site development (McLanders, 2009). SBS optimize speed of product to market and deliver real business savings (McLanders, 2009). This partnership is just to ensure that GGI has a established brand upon merging a partnership with a compatible company.
Partnership Six Step Process Wal-Mart was the leading seller of house-ware product in the year 2008 and again in current year. Although over $300 billion was made globally from house-ware products, Wal-Mart was the top. Partnerships offer a great opportunity to grow your customer file and strengthen your brand for very little money out of pocket. For GGI to partner with whatever company it chooses, it must consider the following six steps to get it started. 1) Compile the assets you have barter with. Some common examples of inventory frequently bartered are package and customer inserts as well as links and banner ads on e-mail newsletters, online shopping cart confirmation pages and online customer order status areas (Figueredo, 2006). 2) Identify your potential partner. What you need to consider your products and services, then make a list of complimentary companies. Similar customer profiles can help increase conversion rates from these efforts. Examine the behavior data of your target market and make a list of potential partners based on other brands or products your customers use (Figueredo, 2006). 3) Develop a standard legal agreement for cooperative marketing ventures. Your legal department or your potential partner may require a formal agreement between parties. Each party should sign a nondisclosure agreement. Even internet contact, make should that there is permission to do so (figeredo, 2006). 4) Locate the appropriate contact. Find out who your contact is for the partnership and make sure that you communicate to measure performance on both sides of the deal (figueredo, 2006) 5)Make the deal. Present your ideal in the most succinct format possible, because you may value package insert more than e-mails and your partner may feel differently. Making the deal is where creativity comes into play (Figueredo, 2006). 6) Track program results. Make sure each of you have a clear understanding of the other party's success metric. Always request updates from your partner to allow you to monitor performance from your partner's perspective as well as your own. Remember, flexibility is the key to most cooperative marketing partnership (Figueredo, 2006).
The distribution and placement of a product are critical factors in successful marketing. For the retailer, placement is all about location - location of the store, location of the product within the store, or merchandising products in a way that maximizes exposure and profitability of that item. GGI wants to reassess their distribution / placement process. Considerations for GGI to address are: Existing 11 stores with more opening soon. Where will the new stores be located? How to get the product to the customer? If influencing an action, GGI has to provide product to buy. E-business (selling product through a website). Product placement is a mode of advertisement, where brand-named goods or services are placed in a setting usually devoid of ads, such as movies, the story line of television shows, or news programs. The product placement is usually not divulged at the time that the good or service is featured.
Placement - You have 11 stores with more opening soon. Where will the new stores be located? Retail Mall A mall has many retailers competing with each other under one roof. Typically there are 3 to 5 anchor stores (large chain stores) and then dozens of smaller retail shops. Often the rent in a mall location is much higher than other retail locations due to the high amount of customer traffic a mall generates. Mall retailers will have to forfeit some independence and observe a set of rules supplied by mall management. Shopping Center Strip malls and other attached, adjoining retail locations will also have guidelines or rules for how their tenants to do business. These rules are sometimes more lenient than a mall. Shopping centers come in various sizes and may have as few as 3 or as many as 20 stores. The types of retailers, and the goods or services they offer, in the strip mall will also vary. Smaller shopping centers and strip malls may have a limited parking area for your customers. Downtown Area Like the mall, this type of store location may be another costly choice but there may be more freedom and fewer rules for the business owner. Many communities are revitalizing their downtown areas and retailers can greatly benefit from this effort. The lack of parking is generally a big issue for downtown retailers. Free Standing Locations This type of retail location is a stand-alone building. It can be in a neighborhood location or right off a busy highway. There are usually no restrictions on how a retailer should operate his business here. It will probably have ample parking and the cost per square foot will be reasonable. (Waters, 2009)
Placement - How do you get the product to the customer? If you are going to influence an action, you have to provide product to buy. Product placement is an advertising method in which businesses pay a fee or provide services in exchange for a prominent display of their products. “It is primarily used in connection with the movie industry, although other venues such as concert halls, convention centers and high-profile nightclubs may also agree to some form of product placement” (Pollick, 2009). The most well-known example of product placement was in Steven Spielberg's movie ET . Originally ET was supposed to be drawn out of hiding by following a trail of M&M candies. The company which manufactures M&Ms did not want to have their product associated with an “unproven and potentially unmarketable movie” (Pollick, 2009). Another company agreed to provide a comparable candy called Reese's Pieces . “The movie became a huge financial success, and the product placement boosted sales of Reese's Pieces substantially” (Pollick, 2009). Product placement in movies is controversial. Some film makers see the practice of product placement as being overly commercial while others welcome any company willing to invest money in exchange for product placement. Regardless of the controversy there is no doubt that product placement is effective. Viewers may not even be aware of all the examples of product placement in an average film, but they might recall enough details to boost sales after the fact. If nothing else, the company benefits from the use of their brand name or logo in film. “If James Bond shoots out a Coca-Cola display, for example, the audience will remember that sequence long after the movie ends” (Pollick, 2009).
Placement - Be sure to address the e-business side of this scenario (selling product through a website). For an e-business to be found by qualified prospects the company must be at the top of search engine results pages, linked-to and from popular blogs, and talked-about on social media services. To convert those prospects into paying customers, you need robust lead tracking, lead nurturing and marketing analytics such as the following: Search Engine Optimization Use keyword analysis to fine-tune the site's search engine optimization. Track search-engine rankings for specific keywords, their search volume and their difficulty, and identify the best keywords to optimize the site around. Search Engine Optimization (SEO) analysis for every page in the site. Track inbound links to your website and identify opportunities to improve link quality and build new links. Business Blogging Blogging should be a central part of the marketing strategy. Blogging produces fresh, targeted content and helps attract more inbound links, which improves the search engine rankings. A business blog also allows for engaging in a two-way dialogue with potential customers and keep them constantly engaged with the company. Competitor Analysis A site grader allows for tracking key metrics such as search engine rank, traffic rank, blog rank, number of inbound links, bookmarks, and ranked keywords for your site and competing sites. Marketing Analytics Marketing analytics lets you understand the entire sales cycle in order to define which marketing activities drive traffic, leads, and customers. Website Editor A WYSIWYG website manager allows for easily creating specific content relevant to specific audiences and will improve the businesses chances of converting website visitors into customers. Lead Tracking & Intelligence Track a leads' path through the site and capture detailed information about every visitor that will help qualify leads and close more sales. Lead Grader A lead grader will automatically rate leads based on their likelihood to close. Marketing Intelligence Search engine rankings for your site and your competitors' sites should be tracked. Keep track of your referrals, your traffic levels, your lead sources and your conversion rates. You should also track conversations about your company and keywords across the web by analyzing your metrics and the web for changes in keyword rankings, new leads, and conversations related to your site. Social Media In addition to search and blogging, social media is a powerful way for a company to be found. Participating in online conversations on social services such as Facebook and Twitter you can build trust and attract new visitors to your site which will generate new leads for your business. (Inbound Marketing, 2009)
Promotion Digital promotion is growing rapidly, companies lacking in digital promotion are falling behind. It has been proven that the younger generation of shoppers are spending most of their time online or shopping where they see television ads. For GGI it will be important not to just keep up with competition with digital advertising, but to make a difference. Websites that serve for advertise should attract customers. The website should have a perfect mix of information, colors and design to keep a customer on track. Nothing distracts a customer more than a cluttered unorganized website. GGI will want to make this one of their main priorities to avoid. As the first contact point of the consumer to the site, the main message should be communicated across at this point, through copy and graphics. Once the customer is engaged, the website should be easy to follow and allow for comparison between products. A good website is one that customers feel that they can share with their friends. In order to keep customers returning to the website it will be necessary to have them have a log it name so that promotional coupons and emails can be offered. A big advantage of online campaigns is that it is highly measurable. After each campaign, advertisers must analyze the reports and record key learning’s. With this, GGI will evolve with what the consumers want. Having this advantage of offering promotional coupons and such will be done mainly through email. GGI will also want to engage in sending out weekly advertising emails that show promotional values based on customer interest.
Promotion Direct mail advertisement is everywhere and if GGI does not use this method, they will be missing out. No one likes to resist a coupon, and in most cases people use a coupon as an excuse to go shopping. Direct mail is an effective way to advertise at a low cost. Newspaper advertisement is not as popular these days as in the past; however it still shows interest when done correctly. Planning GGI’s ads strategically will be the most important step in making these ads effective. There are a few different types of ads that can be done; they are business card ads, coupon ad, sale ad, and spotlight advertising. A business card ad is used to advertise who you are and what you sell. When doing this type of advertisement you will want to include a logo of some type. This could be a nice small ad that you run year round.Coupon ads are great for sales promotions to bring new customers to the store. By offering a certain dollar or percent amount off your merchandise, the coupon offer is also one of the easiest ads to track the effectiveness.Sales ads are a little different because they invite customers in to the store to receive a certain discount on a product, department or the entire store. Theses sales ads usually include limitations. A spotlight ad focuses on a particular product, product line, staff members or customers of your business. This type of ad is better to be run larger in the newspaper and only a few times a year. The next top choice of non-digital advertising is a billboard. The biggest obstacle with billboards is location. They are huge and can be seen, however GGI will need to place them in a high traffic area. Paying extra money for a prime location will be vital! In store advertisement is also very important. When people come in for a specific item, they will likely shop around as well. Allowing customers to see that there are more great deals will keep them shopping. Another important aspect about in store advertisement is loyal customers will stop in more frequently knowing that GGI has great sales that may not be advertised externally.
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The Marketing Plan <ul><li>Global Gadgets Imports </li></ul><ul><li>December 21, 2009 </li></ul>
Group Members: <ul><li>Cynthia C. Cutright * Amber Davies * James A. Fischer * Sharon Flowers * Charles ‘Chuck’ Foster </li></ul>
PRICING <ul><li>Perceived value drives decisions of customer </li></ul><ul><li>Pricing indicates market competitiveness </li></ul><ul><li>Effect of incentive-driven campaigns </li></ul>
PRICING: SWOT Analysis <ul><li>A swot analysis allows you to develop a game plan with a new pricing structure </li></ul><ul><li>As it will indicate internal and external market trends for gaining market share and developing new sector brand loyalty </li></ul>
PRICING: Strategy Matrix Quality Low High Low High Breakeven Analysis total fixed cost / (unit price-unit variable cost) Cost-Plus Advertising average unit cost/(1-markup percentage) Economy Penetration Skimming Premium
PRICING: Strategies & Objectives High-quality Maximize Short and Long Term Pricing Goals Premium and Exclusive Pricing -require less customers to maximize short-term impact -targets customers who believe that inexpensive products have a direct reflection on performance -consumers are willing to pay a premium for expected emotional return in performance
PRICING: Strategies & Objectives Low/High Quality Penetration Pricing -Prices are set artificially low to instantaneously gain market share -Once objectives have been achieved prices are raised to justify cost for return on investment
PRICING: Strategies & Objectives Low Quantity/Low Quality Skimming -Sets a high price for product consumption and is not lowered until market conditions force a change in pricing structure -Often utilized by premium manufacturers and distributors -Prices do not decrease until competitors threatened market share
PRICING: Strategies & Objectives High Quantity/Low-Quality Economy Pricing -Manufacturers and distributors who offer high quantity and lower quality discount based on inventory volume -Higher activity allows for higher pricing discounts to gain market share
TARGET AUDIENCE Primary Segmented Demographic Information Gender : Female Age : 35-45 Years Old Income: Middle-Class Approximate $45,000 Status : Married These individuals or more receptive to the introduction of new product lines and will provide the opportunity for expansion and consumer buying decisions on the Internet portal
TARGETED PRICING: Strategy Market Penetration : Provides a reasonable incentive for brand loyal consumers to enter into a new sector with a gradual increase in price structure when goals have been realized
PROFILING: The buying process of a customer <ul><li>Psychological Process </li></ul><ul><ul><li>Motivation </li></ul></ul><ul><ul><li>Perception </li></ul></ul><ul><ul><li>Learning </li></ul></ul><ul><ul><li>Memory </li></ul></ul><ul><li>Focus Group Benefits </li></ul><ul><ul><li>Additional marketing research </li></ul></ul><ul><ul><li>Profiling to distinguish “What” </li></ul></ul><ul><ul><li>Profiling to deisinguish “Why” </li></ul></ul>
PROFILING: Benefits of customer profiling <ul><li>Customer profiling defined </li></ul><ul><li>Focus group surveys </li></ul>
PROFILING: Focus groups <ul><li>What features must our product have for GGI to succeed? </li></ul><ul><li>How should GGI implement products to target market? </li></ul><ul><li>How and Where do our customers shop for our products? </li></ul><ul><li>How much are customers willing to spend? </li></ul><ul><li>What compels the purchase decision of a customer? </li></ul>Five questions to ask the focus group:
PACKAGING: Objectives <ul><li>Identify the brand </li></ul><ul><li>Convey descriptive and pursuasive information </li></ul><ul><li>Facilitate product transportation and protection </li></ul><ul><li>Assist at-home storage </li></ul><ul><li>Aid product consumption </li></ul>
PACKAGING: Labeling <ul><li>Identification </li></ul><ul><li>Product rating </li></ul><ul><li>Description </li></ul><ul><li>Promotion </li></ul><ul><li>Warnings </li></ul>Labeling Must Include :
PARTNERSHIP <ul><li>GGI Joining Sun Brand Solutions </li></ul><ul><li>What Sun Brand Offers? </li></ul><ul><li>Integrated Brand Design Packaging </li></ul><ul><li>Reprographics and Trademark Protection </li></ul><ul><li>Holistic Approach </li></ul><ul><li>Web design </li></ul><ul><li>E-Commerce Site Development </li></ul><ul><li>Speed of Product to Market and Deliver </li></ul>
PARTNERSHIP <ul><li>Six Steps to Follow When Merging a Partnership: </li></ul><ul><li>Compile the assets with which you barter </li></ul><ul><li>Identify your potential partner </li></ul><ul><li>Develop a standard legal agreement for cooperative </li></ul><ul><li>marketing ventures </li></ul><ul><li>Locate the appropriate contact </li></ul><ul><li>Make the deal </li></ul><ul><li>Track program results </li></ul>
PLACEMENT <ul><li>Overview </li></ul><ul><li>Location of new stores </li></ul><ul><li>Distribution to customers </li></ul><ul><li>E-Business </li></ul>
PLACEMENT <ul><li>Retail Mall </li></ul><ul><li>Shopping Center </li></ul><ul><li>Downtown areas </li></ul><ul><li>Freestanding locations </li></ul>Location
PROMOTION: Digital GGI <ul><li>Website </li></ul><ul><li>E-mail </li></ul><ul><li>TV Commercials </li></ul>
PROMOTION: Non-digital <ul><li>Direct mail </li></ul><ul><li>News paper advertising </li></ul><ul><li>Billboards </li></ul><ul><li>In-store advertising </li></ul>
REFERENCES <ul><li>Bowerman, B.L, O'Connell, R.T, Orris, J.B, & Murphree, E.S. (2008). Essentials of business statistics . New York, NY: McGraw-Hill. </li></ul><ul><li>Danca, A. C. (1999). SWOT analysis . Retrieved December 17, 2009, from St. Francis University: http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/swot.htm . </li></ul>
REFERENCES <ul><li>Ferrel, O. C., & Hartline, M. D. (2008). Marketing strategy 4th edition. Mason Ohio: South-Western Cengage Learning. </li></ul><ul><li>Figueredo, P., (2006). Getting a Cooperative Marketing Partnership Started. Retrieved December 20, 2009 from http:// www.targetmarketingmag.com/article/getting- cooperative-marketing-partnership-star-35081/2 . </li></ul>
REFERENCES <ul><li>Inbound Marketing . (2009). Retrieved December 21, 2009, from HubSpot: http://www.hubspot.com/ </li></ul><ul><li>Kotler, Philip, and Kevin Keller. Marketing Management . 13. New Jersey: Pearson Education Inc. , 2009. 662. Print. </li></ul><ul><li>Kyle, B. (2009). Seven pricing strategies that improve profit . Retrieved December 19, 2009, from Website Marketing Plan.com: http://www.websitemarketingplan.com/techniques/pricing2.htm . </li></ul>
REFERENCES <ul><li>McLanders, F., (2009). Brand Lifecycle Management. Retrieved December 20, 2009 from http://www.brandtech.com/Page.aspx?pid=1 . </li></ul><ul><li>Pollick, M. (2009). What is product placement? Retrieved December 21, 2009, from WiseGeek: http://www.wisegeek.com/what-is-product-placement.htm </li></ul><ul><li>Pricing strategies . (2009). Retrieved December 19, 2009, from Marketing Teacher.com: http://www.marketingteacher.com/Lessons/lesson_pricing.htm . </li></ul><ul><li>Pricing your products and services . (2009). Retrieved December 17, 2009, from B. net.com: http://www.bnet.com/2410-13237_23-168359.html?tag=content;col1 . </li></ul>
REFERENCES <ul><li>Waters, S. (2009, December 18). Types of retail locations . Retrieved December 21, 2009, from Shari's Retailing Blog: http://retail.about.com/od/location/a/ retail_location.htm </li></ul><ul><li>Wilson, D. R. F. (2000, May 9). Pricing strategy is part of your internet marketing plan . Retrieved December 19, 2009, from Wilson Web.com : </li></ul>