Free Essay Example on Marketing: 4 Pillars of Business Success

Introduction

Marketing usually plays a crucial role in how businesses run; the process is mainly focused on four features of the business, including product, promotion, price, and Place (Perreault, 2018). It ensures that the product produced is distributed in the market and can satisfy consumers’ needs. It also ensures that the price set for a given service or product is affordable to the targeted customers and profitable. The process ensures that the consumers are informed and made aware of the product and its benefits.

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Marketing is essential in the global marketplace since it keeps a company aware of logistics challenges and the opportunities presented by the global marketplace (Westwood, 2013). This paper presents a marketing plan for the Mobile Manufacturing, Inc. (MM) company.

Situation Analysis

Mobile Manufacturing, Inc.’s first successful product and initial public offering (IPO) in 2003 raised enough capital to help the firm develop new products. However, since then, many companies and technology giants have caught up with them. Although MM had some success with other products, it has not been able to match its initial success and distinguish itself from its rivals. After several failed attempts at new products, the company has designed a new product. However, the marketing plan is the key. Therefore, this marketing plan will meet the needs and wants of consumers who crave the latest and greatest technology in their mobile phones. The new product will get MM back to a market share if it survives in a fiercely competitive environment.

Market Analysis

The technology and mobile phone markets have changed drastically in other ways since MM first entered the market. There are new domestic and foreign companies competing, increased market demand driving prices down, and innovative products being introduced almost every year. Despite the intensified competition, the new product’s special features will provide a leading edge and differentiate its products from those of the rivals’ products.

Competitive Analysis

Competitors and other rivals may have significant corporate resources, long-standing relationships with telecommunications carriers, high brand recognition, extensive media attention and direct support, and even extensive experience in management and product development. However, no competing product has a more appealing and exact mix of features and benefits offered by the new phone the company designed. The company has carefully planned the handset and technology to meet multiple needs, not being met by the existing smartphone products. Rather than competing in the wider smartphone market, the company chose to carefully target segments that, according to research, place a high value on the new product’s features and benefits.

Marketing Strategy

The company’s marketing positioning for the new phone is based on superior innovation, reliability, ruggedness, and security. Using important features of the marketing mix, supported by internal and service marketing, MM will educate the channel partners and the market as a whole about the new product’s benefits and features to spur purchases. Television advertising is not often affordable in this start-up situation; therefore, MM will use creative messages on their website, in magazines, in social media, and in other media to reach targeted segments. The company will also closely monitor competitive progress to determine whether and when adjustments are needed, especially the pricing strategy.

Objectives and Goals

Customer Satisfaction

The new product will have functions and features that give many benefits highly valued by the specific and targeted segments (Chernev, 2020). For instance, the proprietary patented solar battery will be more economical than conventional batteries in competing products. It offers the dual benefits of minimal environmental impact and longer use when charged. The battery will have a three-year warranty, unmatched in this industry.

Customer Awareness

The communications marketing strategies and objectives are to create 40% brand awareness in the consumer target market and 50% brand awareness in the business target market within a year. To achieve such objectives, MM will perform a multimedia brand-building campaign that distinguishes the new product from competing products. A high priority will be given to social media marketing, given the need to build buzz cost-effectively (Chernev, 2020).

Market Share

The company will use selective distribution for marketing the new product through two central channels. The first channel consists of major retailers like Target and Amazon.com, widely known for their selection of technology products and electronics and for gaining customer-friendly prices to complement MM’s penetration pricing strategy (Musyoka, 2019). Although channel costs can be a challenge, the company has decided to emphasize logistical efficiency and customer service to build the brand image among consumers and channel members.

Pricing Strategy (Sales in Dollars or Units)

The financial pricing objectives are to realize profitability within the first year of product introduction and achieve a third-year ROI of 15%. The company will apply a penetration pricing strategy to build the brand in this intensely competitive market. The first products will have an average retail price of $199 and a wholesale price of $125 per unit. Therefore, based on sales of 240,000 units, first-year incomes are proposed to be $30 million. Since the smartphone market is unpredictable and dynamic, MM is tracking competitive products and their prices daily. It will be willing to adjust the wholesale prices as required once the first model has been launched.

Financial Analysis and Expected Results

The total first-year return for the new phone is projected at $30 million at a standard wholesale price of $125 based on 240,000 units. MM anticipated sales of $6 million for the first quarter, sales of $4 million in second quarter, sales of $8 million in third quarter, and sales of $12 million in the fourth quarter. These projections assume cumulatively higher a spike and business sales in year-end consumer sales.

Contingency Plans

The company plans stringent control efforts to monitor quality and customer service satisfaction to respond promptly to any challenges. MM is also monitoring online product reviews and customer service communications to detect any early signs of consumer confusion or concern. Finally, the company will be exercising control to realize breakeven, another fundamental performance indicator. It will monitor its metrics during and after implementation; this includes weekly and monthly costs, weekly and monthly sales, weekly and monthly sales by channel, quarterly awareness levels, and the number of various marketing factors for making special purchases. Quarterly financial models will incorporate return on sales, return on marketing investment, and sales by channel. Besides, MM is tightly controlling schedules to guarantee timely implementation.

The company has developed a contingency plan to deal with harsh downward pricing pressure that may transpire if a major competitor produces a lower-cost technology or initiates a price war. The contingency plan also calls for establishing a significant short-term price promotion, including a rebate; this will help it remain competitive while resolving various segments’ price sensitivity (Damnjanovic et al., 2016). Based on the short-term promotion results, the company would revise the marketing plan to maintain market share while retaining a minimally satisfactory level of profitability.

References

Chernev, A. (2020). The marketing plan handbook. Cerebellum Press. https://www.amazon.com/Marketing-Plan-Handbook-4th/dp/1936572397

Damnjanovic, V., Filipovic, V., & Janicic, R. (2016). The planning process of integrated marketing communication. International Scientific Days. https://ojs.bilpublishing.com/index.php/jbar/article/view/1014

Musyoka, R. (2019). Marketing Planning (market analysis, goals and marketing Strategies. http://erepository.uonbi.ac.ke/handle/11295/106900

Perreault, W. D. (2018). Essentials of marketing. New York: McGraw Hill. https://www.nima.today/wp-content/uploads/2018/11/Essentials-Of-Marketing-William-D.-Perreault-Joseph-P.-Cannon-And-E.-Jerome-Mccarthy.pdf

Westwood, J. (2013). How to write a marketing plan. Kogan Page Publishers. https://www.koganpage.com/product/how-to-write-a-marketing-plan-9780749484835