Marketing strategies are important to A price

Marketing Management 3 Assignment

Jabulisa Mazibuko

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Student number: 18 11 76
Course code: BBA 3 – MKMT 3
Number of pages: 10

 

 

 

 

 

 

 

Introduction

 

Jean LaRoche of Strasbourg had worked in the
United States for over 10 years. Being an entrepreneur at heart, Jean has been
considering the idea of commercially growing sweet corn and selling it in
Europe. The purpose of this assignment is to address the challenges that Jean
might face trying to enter the market.

 

The hardest part of selling sweet corn to
Europeans is simply getting them to taste it. Jean constant has to fight the
misconception that sweet corn is the same as the field corn grown to feed livestock.
Therefore to prepare for his new business venture, Jean
must implement a number of branding strategies which will help him to attract
customers to the brand.

 

This assignment will explain
how to choose a brand name Jean’s frozen corn kernels
by illustrating a brand naming process and its advantages for Jean’s new brand.
The brand naming process will help Jean finding the best brand name for his
product.

 

Jean will
then need to position his product in the market. Pricing strategies will help
him determine the right price for his seasonal fresh corn. There are a number of pricing strategies available
including

 

Pricing strategies are important to A price
strategy should be seen as a “basic, long-term pricing framework” – logically
flowing from

pricing objectives – for a product or service (ibid). A
chosen price strategy should define the initial

(introductory) price, and provide direction for
price adjustments over the course of the product’s life

cycle (ibid). In other words, a price
strategy sets a competitive price in a particular market

segment, based on a clearly defined positioning
strategy

For example, a car maker like Ford sets a
base price for each of its models, but each of its dealers

has some discretion in setting the final
selling price (ibid).

Unfortunately, most companies do not have much
freedom to set the base price they would want,

or to devise the price strategy of their dreams.
This is because prevailing market conditions and

other elements of the marketing mix will dictate
the amount of pricing freedom a company can

enjoy (ibid). For example, if a
company introduces a new product, which is similar to several others

already on the market, its pricing freedom will
be restricted. It follows then, that such a company

would then have to charge a price close to the
average market price. By contrast, a company that

produces a totally new product with no close
substitutes and a clear competitive advantage will

have a lot more pricing freedom.

The Tesla car company has turned the car industry
on its head – from production, to marketing,

selling and even pricing. Let us see how.

“Tesla would be dead today if they didn’t
build the best car available today. There are too many

obstacles – range, lack of road trips, and
buyer confusion to name a few. Tesla used electric

technology to build a car that can’t be
reproduced with a combustion engine. It’s as fast as a

Porsche and gets the equivalent of 100 miles
per gallon. It has very few moving parts. It is the most

aerodynamic car made, (has won several
consumer and design awards) and has the most cargo

space of any car in its class. It’s a sports
car that seats seven” (D’Arcy, cited in Science of

Revenue.com, 2016).

The three basic strategies for setting a price on
a product or service are price skimming,

penetration pricing and status quo pricing.

 

; discuss the promotional mix that can be used to
promote your new brand of briquettes; and Identify
the common mistakes made by brand managers, as highlighted by Keller, et
al (2012), and explain how these could be overcome.

 

 

 

A brand can be defined as a name, term, sign,
symbol, or design, or a combination of these, intended to identify the goods
and services. Branding is the process of developing a brand, and positions the
brand in the market place to differentiate them from those of competition.

 

 

 

 

Table of Contents
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Figure 1: The brand naming process. 4

 

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found.

 

 

 

1.1  Figure 1: The brand naming process

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1: The brand naming process
for Jeans Corn Company

 

Process

Procedure

Define brand
objectives

Jeans brand objectives are as follows: To
commercially grow sweet corn and sell it in Europe; importing hybrid seeds to
grow in France; to get an exclusive contract with a US seed company for the
Super Sweet hybrid seeds; getting Europeans to buy and taste American sweet
corn.

Generate names

These names have
been generated using the company’s objectives: Sweet Hybrid Seeds; American
Sweet Corn and French Hybrid Corn Seeds

Screen initial
name
suggestions

The following
brand names have been eliminated due to double meanings or difficulty to
grasp: Sweet Hybrid Seeds is eliminated due to its vagueness and French
Hybrid Corn Seeds because the words ‘French’ and ‘Hybrid’ are give the brand
name a double meaning and it is too long to position on the
market.

Evaluate possible
screened names

American Sweet
Corn (ASC) is Jeans new company name. Jean will have to do an international legal search until
the brand name is screened in all countries.

Conduct consumer
research on preferred
names

Europeans might perceive Jean brand name
differently. American Sweet Corn is a strong name because it is easy to remember
and defines the product, but how Europeans perceive Americans and the food
they eat could either be an upside or a downfall to the brand.

Select final name
to be
Used

The final brand name is American Sweet Corn
(ASC) and it will enable the organisation to achieve its ultimate branding
and marketing objective which is getting Europeans to buy and taste American
sweet corn.

 

 

1.2 Figure 2: Types of pricing strategies

Pricing strategies

Definition

Examples

Penetration

Here
the organisation sets a low price to increase sales and market share. Once
market share has been captured the firm may well then increase their price.

A
television satellite company sets a low price to get subscribers then
increases the price as their customer base increases.

Skimming

 

 

Competition

 

 

Product-line

 

 

Bundle

 

 

Premium

 

 

Psychological

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The promotion or
marketing communication mix is used to inform, persuade and remind the target
market and other organisational stakeholders. It is referred to as the
marketing communication mix because it is made up of different elements, namely
advertising, sales promotions, public relations and personal selling.

 

Table 2: The application of the
promotional mix to promote the company’s new brand of corn cob briquettes

 

Promotion mix

Summary

The application of the promotional mix to
promote the new brand of briquettes.

Advertising

Advertising is the
activity of attracting public attention to a product or business.

The advertising
of new corn cobs pressed into briquettes can be advertised in the newspaper or magazine,
broadcasted on radio or television, or sent using electronic media.

Sales promotion

Stimulation of sales achieved through
promoting positive experiences and getting customers to try the brand.

 

Coupons, giveaways price deals,
discounts, demonstrations and competitions are examples of sales
activities that can be used to promote the new brand of briquettes.
 

Public relations

The practice of
building and preserving goodwill with the community.

Publicity can be
used as a form of communication to promote charitable causes, and other civic
engagements.

Personal selling

Personal selling
is a two-way, communication process used to inform customers about new brands,
products and services and establish long-term relationships with the customers.

Face-to-face
selling and samples of the new product can be given customers to persuade
them to try the new product.

 

Table 3: Common mistakes made by
brand managers and how to overcome them

Mistakes made by brand managers
 

Solutions to mistakes

The meaning of a brand

Understand the brand meaning and the
appropriate methods to market products.

The brand’s promises

Analyse and evaluate marketing efforts to
decide which activities will provide better delivery of results.

Support the brand adequately

Employ a range of supporting brand marketing
activities.

Being patient with the brand

Market the brand consistently with a
positive attitude

Controlling the brand

Position the brand properly in correlation with
the consumers’ perceptions of value of the brand.

Balancing consistency and change in a brand

Encourage innovation in the brands image
and personality.

Understanding the complexity of brand equity
measurement and management

Implement brand equity management system to
ensure that marketing actions properly reflect the brand equity.

 

Conclusion

 

 

References

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sources in the current document.