Marketing Principles and Applications

Marketing Principles and Applications

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Marketing Principles and Applications

Action Plan

Pricing

The company should employ price penetration strategy in targeting entry of the product into the market. This will require a low price as the initial bait to gain stability in the market. This will target the low-income earners while acting as an enticement. Price skimming is another strategy for marketing of the electronic rechargeable mug. Innovation on the product will facilitate increase of the price in later stages with quality improvement. The third strategy in pricing will involve psychological pricing of the product. The company should sell the mug in one cent less of the total cost to attract customers for example rather than $20 the company should set it at $19.95.

Product

            The electronic mug is a technological and portable electronic appliance that can be used to store beverages for an extended period without recharging and still maintain the temperature of its contents. The company should highlight this facet of the product to the customers’ awareness. The company should focus on the innovative nature of the product that uses the lithium ion battery. The battery withstands several conditions and is very durable with extended periods of energy retention. The company should also strive to diversify the electronic appliance in product differentiation. Different mugs for different beverages, with differentiated capacities and electronic rechargeable stand-time should dictate the production of the products to different customers.

Promotion

            The company should seek the promotion strategy using celebrity endorsements. For example, a well-renowned celebrity will take part in advertising of the electronic mug, display the benefits, affordability and uses of the mug to the public, and create interest and awareness. The company should utilize the internet in advertising and promoting of the products online to a wide variety of customers. Through social sites such as facebook, twitter, Google plus and the like, a larger audience will be targeted. The company should maximize the bundling opportunity in promotion of the product. For example, common home or office appliances can be bundled with the electronic mug to promote its awareness and sales.

Place

            Distribution of the electronic rechargeable mug should be placed in areas of high target market. The first instance is at the largest established supermarkets in areas of dense population. This will create awareness to a larger market share of interested customers towards the company’s product. The second strategic placing of the product should be at the specialized group of customers. Most users of the electronic mugs are office workers; therefore, the company should supply the products directly to major office buildings and meeting venues. The third placing strategy for marketing is at convenient stores located near residential areas for easy access of the products.

Timeline

In terms of pricing, penetration pricing should be given a timeline of the first three months and the company to evaluate actual sales of the products according to the strategy. Price skimming will require two years of establishment since the innovations will be from time to time. Psychological pricing will consist of the first three months of introduction before increase. In terms of promotion, celebrity endorsements will require six months of campaigning before evaluation of the response by customers is undertaken. Internet usage can be monitored on daily basis due to activities of the various purchases and shipment. Bundling strategy can be evaluated on a monthly basis after the sales of accompanying products. In placement distribution of the products to the customers, the timeline involved for established supermarkets, office venues and convenient stores is three months, six months and monthly basis respectively according to the sales of individual products.