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Marketing Strategy: PRODUCT - A Product Refers To Any Item That Intends To Satisfy The Needs and Wants of A Target

The document discusses marketing strategies for a company launching an air conditioning product. It covers the marketing mix of product, price, place, and promotion. For product, it discusses factors like how it impacts brand image and customer needs. For price, it suggests using differential and market penetration strategies. For place, it recommends a hybrid distribution channel. And for promotion, it proposes tactics like drip marketing and referrals.

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Dharmesh Goyal
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42 views

Marketing Strategy: PRODUCT - A Product Refers To Any Item That Intends To Satisfy The Needs and Wants of A Target

The document discusses marketing strategies for a company launching an air conditioning product. It covers the marketing mix of product, price, place, and promotion. For product, it discusses factors like how it impacts brand image and customer needs. For price, it suggests using differential and market penetration strategies. For place, it recommends a hybrid distribution channel. And for promotion, it proposes tactics like drip marketing and referrals.

Uploaded by

Dharmesh Goyal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MARKETING STRATEGY

The marketing mix/ marketing strategy refers to the set of actions, or tactics, that a company
uses to promote its brand or product in the market. Various components of marketing
strategies are -

PRODUCT - A product refers to any item that intends to satisfy the needs and wants of a target
customer.
PRICE- involves decision regarding How much do you charge and how does that impact how
your customers view your brand?
PLACE – involves decision regarding Where to promote your product or service? Where
to ideal customers go to find information about your industry?

PROMOTION: involves strategies regarding - How do customers find out about you?
What strategies do you use, and how effective they are?

PRODUCT
Key points to be taken care while launching the product are –

 How the new product brand launch will impact the its image in the market .For
example often launching product with no innovative technology may end up
impacting the image of the company as an innovator in the field.
 Will the product be viewed completely different from the existing products of the
firm and how much is the risk of competition for already existing firms.
 Does the product launch satisfy potential customer needs and wants in a way
that can deliver profits to the firm?
Due to increasing comfort level and continuous innovation in technology is it important to
launch a product that can provide customer’s extra comfort.
Different types of products can be launched depending upon the needs i.e more powerful ac for
lager room and vice versa.
PRICING
Various pricing strategy available are –

 Cost base pricing – it is a highly competitive strategy where we first calculate the cost of
producing the good and further decide a markup based on the profit we want to earn

 Market penetration – it involves launching the product at a low cost to get foot hold in
the market/segment
 Market skimming – it involves charging higher price for certain well-established
product/ high quality products which have developed certain brand value in the minds
of consumer

 Competition based – this involves setting a price relative to the competitors will
simultaneously reducing the cost of production/operation to increase the profit

Since AC is used for industrial as well as in household so it would be best to adopt differential
pricing strategy i.e. cheap affordable prices for household purposes and charging slightly higher
prices for the industrial purposes.
Moreover, we can adopt market penetration strategy in initial stages to grab the market share
by providing best quality products at a affordable price and further we can adopt market
skimming strategy for some well doing products in the market as consumers do not mind
paying slightly higher price for the brand they trust.
PLACE (DISTRIBUTION CHANNELS)
Various modes of distribution that can be used are -

 Direct distribution – where the company sell its product directly to the consumers
through its own store or by just selling the products online

 Indirect distribution – where the products are sold through channel partners like
wholesaler, retailers, and other distribution agents.

 Hybrid – it is a mixture of both direct and indirect distribution channel where the
critical aspect of distribution system are managed by the company itself, and
secondary functions such as warehousing, store management etc. are carried out
by various channel partners.

Sunshine A/C Should choose hybrid distribution channel to reduce the inventory cost
and to grab lager consumer base.
PROMOTION
Various promotion tools that can be used are
 Drip marketing – It is a marketing tactics that where constant flow of marketing material
is sent to customers over a period of time helping in long term repeated sales
Here we can first release a pamphlet or flyer showing increasing heat and sweatiness with a
catchy tagline to grab consumer attention and a week later could introduce another flyer giving
attractive discount. During off season we can also offer free/ low cost Ac servicing.

 Referrals – this includes networking with people in similar business like services like
painting, plumbing, cleaning etc. this can help spread the name and earn new
consumers.

 Search engine – this a new and fast emerging way of advertisement/promotion where  
advertisements are shown to the customers based on their search history and browsing
history this can help grab potential consumers.
Using technology that produces less harm to the environment such as minimizing the wasted to
energy consumption creates a positive image in the minds of consumer also such practices help
boosting word of mouth.

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