Marketing bundle, and premium. Pricing is one of

Marketing Management 3 Assignment

Jabulisa Mazibuko

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Student number: 18 11 76
Course: BBA – MKMT 3
Pages: 9

 

 

 

 

 

 

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 and selling sweet corn in Europe.  The challenge with selling sweet corn to
Europeans is simply getting them to taste it. Jean must constantly fight the misconception
that sweet corn is the same as the field corn and needs
help attracting new customers to the brand.

 

This assignment attempts to help Jean LaRoche by illustrating
a brand naming process, describing various pricing strategies and the promotional
mix that can be used to promote his products and identify the common mistakes made
by brand managers and how they can be overcome.

 

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 is a number of
pricing strategies available such as penetration, skimming, competition, product-line,
bundle, and premium. Pricing is one of the most important elements of the
marketing mix, as it is the only element of the marketing mix, which generates
a turnover for the organisation. It is important that organisations balance the
relationship between supply and demand so that they do not lose sales or
business in the long term.

 

The promotion mix
is a framework 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. Jean will use the promotion
mix to market his new brand corn cob briquettes and describe how he will
promote them to the market. It is important to use the correct blend of the promotional mix so that
the business will continue to gain customers and achieve both short and long
term success.

 

There is a possibility that the brand could fail,
Jean will have to identify the common mistakes made by brand managers and
explain how these could be overcome in his business.

 

In summary, if Jeans business is to succeed,
Jean will have to understand the relationship between branding to
create an image of the company, product, or service in the marketplace   and marketing to position the brand in
the marketplace.

 

 

 

 

 

Table of Contents
Question 1. 4
References. 9
 

 

Figure 1: The brand naming process. 4

Figure 2: Types of pricing strategies. 5

 

Table 1: The brand naming process for Jeans Corn
Company. 4

Table 2: The application of the promotional mix to
promote the company’s new brand of corn cob briquettes  7

Table 3: Common mistakes made by brand managers and
how to overcome them.. 7

 

 

 

 

Question 1

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, Sweet Freezer 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. American Sweet
Corn is too literal.

Screen possible
names

Sweet Freezer
Corn is the name that Jean will use to sell his frozen corn kernels.

Conduct consumer
research
 

Sweet
Freezer Corn is a descriptive and memorable name.

Select final name
 

Sweet
Freezer Corn

 

 

1.2 Figure 2: Types of
pricing strategies

Pricing strategies

Definition

Examples

Penetration

Setting
a low price to increase sales and capture a large market share.

Television
satellite companies

Skimming

The
organisation makes the product available to a wider market by setting an
initial high price then lowering the price layer by layer.

A
games console company.

Competition

Setting
a price lower or higher than competitors.

Offering
a price matching service to match what their competitors are offering.

Product-line

Pricing
products within the same product range at different price points.

Offering
different products with different features at different prices.

Bundle

The organisation
offers a group of products at a reduced price.

A very
popular strategy is the BOGOF strategy often used by supermarkets.

Premium

Setting
the price high to indicate the “exclusiveness” of the product

Harrods,
first class airline services, and Porsche.

Psychological

The
seller here will consider the psychology of price and the positioning of
price within the market place.

The
seller will charge 99p instead £1 or $199 instead of $200. The reason why
this methods work, is because buyers will still say they purchased their
product under £200 pounds or dollars, even thought it was a pound or dollar
away. My favourite pricing strategy.

Optional
Pricing

The
organisation sells optional extras along with the product to maximise its
turnover.

This
strategy is used commonly within the car industry as I found out when purchasing
my car.

Cost
Plus Pricing

This
method ensures the price covers the cost of production costs.

For
example a product may cost £100 to produce and the firm has decided to sell
the product for £120

Cost
Based Pricing

This is
similar to cost plus pricing but it will consider other factors such as
market conditions when setting prices.

Cost
based pricing can be useful for firms that operate in an industry where
prices change regularly.

Value
Based Pricing

This
pricing strategy considers the value of the product to consumers.

Technology
and medical companies are most likely to use this pricing strategy.

 

Jean will use a product-line strategy to price different
products within the same product range at different price points. There
are three different markets: fresh, frozen corn kernels; and corn cobs into
briquettes. He can get an exclusive contract with a US seed company for the
Super Sweet hybrid in which genetic manipulation dramatically retards the
conversion of the corn allowing a properly refrigerated ear of corn to stay
perfectly fresh tasting for four to five days. Therefore, Jeans frozen corn
kernels will be more expensive since he has to import the hybrid seed. Seasonal
fresh corn will not be processed therefore it will be cheaper to produce and
sell.

Table 2: The promotion of 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

Attracting customers
to a new product

The advertising
of new corn cobs pressed into briquettes in the newspapers, magazines or 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

Practising
goodwill in the community.

Publicity 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

 

The brand naming process helps people name their brand, companies,
products, or services and can help shape the future and trajectory the
business. By illustrating a brand naming process, Jean has tackled the biggest
obstacle to selecting a name for his brand and creating an image of the company, product, or
service in the marketplace.

 

Pricing strategies refer to factors that help
the business determine the price point at which it can maximise profits on
sales of your products or services. When setting prices, a business owner needs
to consider a wide range of factors including production and distribution
costs, competitor offerings, positioning strategies and the business’ target
customer base. Jeans customers won’t purchase goods that are priced too high or
priced too low; therefore it is important that Jean balances
the relationship between supply and demand so that they do not lose sales or
business in the long term.

 

The promotion mix comprises of personal selling,
advertising, public relations, sales promotion, and direct marketing. Product
promotion is critical for every business due to the lasting impact promotion
has on the clients. It used to inform
and persuade the target market and other organisational stakeholders. Jean has
applied the promotion mix to promote his new brand of corn briquettes.

 

Using the right blend of the promotional mix
ensures that a business will

Customer relationship management is the
practice of making customer satisfaction the primary objective for
all strategies, systems, policies and procedures of the organisation. Any firm
with organisational challenges and technical issues would
benefit tremendously from applying the six principles of customer relationship management.
Dormont Manufacturing Co. applied these six principles to restructure
their employee compensation and merit system, provide training and support for
their staff and transform their organisational culture by sustaining their
products quality.

 

There are many issues the brand could face and those
mistakes will need to be solved if the brand is to continue gaining customers
and achieving success in both the short and long run. Jean LaRoche has
identified the common mistakes made by brand managers, and highlighted how
these mistakes could be overcome.

 

In summary, Jean LaRoche has the potential to
build a successful brand in France but without the proper positioning of his
product, he could fail.

 

 

References

Bonini, J. (2012, Noveember 02). What is the
Purpose of Marketing? Retrieved January 27, 2018, from IMPACT:
https://www.impactbnd.com/blog/what-is-the-purpose-of-marketing
 
Byczynski, L. (2015,
October 8). Pricing Strategies for Selling Your Produce. Retrieved
January 27, 2018, from Mother Earth News:
https://www.motherearthnews.com/organic-gardening/pricing-strategies-for-selling-produce-ze0z1310zpit
 
CEO, President.
(2014, Octoiber 02). Promoting Products: 5 Components of the Promotional
Mix. Retrieved January 23, 2018, from Linked In:
https://www.linkedin.com/pulse/20141002042202-284765029-promoting-products-5-components-of-the-promotional-mix
 
Francis. (2016,
January 19). The Promotional Mix Concept And The 5 Parts Critical For Its
Success. Retrieved January 19, 2018, from Promotional Mix:

 
Gordon, M., &
Foley, N. (2012, Februaury 24). The 8 Principles Of Product Naming.
Retrieved January 27, 2018, from FAST COMPANY:
HTTPS://WWW.FASTCOMPANY.COM/1819418/8-PRINCIPLES-PRODUCT-NAMING
 
Guest Contributor.
(2018, December 21). 4 Steps for Defining a Target Audience. Retrieved
January 11, 2018, from Print Mag:

4 Steps for Defining a Target Audience


 
Guest. (2011,
November 9). What is the Purpose of Branding? Retrieved January 27,
2018, from Spinweb: https://blog.spinweb.net/what-is-the-purpose-of-branding
Maguire, A. (n.d.). 6
Different Pricing Strategies: Which Is Right for Your Business?
 
Retrieved January 14,
2018, from Quick Books: https://quickbooks.intuit.com/r/pricing-strategy/6-different-pricing-strategies-which-is-right-for-your-business/
 
Miller, J. (2015,
August 20). BRAND NAMING PROCESS: HOW TO MAKE A BRAND NAME RESONATE.
Retrieved January 18, 2018, from Sticky Branding: https://stickybranding.com/brand-naming-process-how-to-make-a-brand-name-resonate/
 
Rachel Craig. (2015,
June 14). Branding 101: An introduction. Retrieved January 03, 2018,
from Rapid Formations: TheBlog:

Branding 101: An introduction


 
Russel, B. (2013,
January 21). Tesla Model S: The Disruptive Marketing of an Electric Car.
Retrieved January 15, 2018, from Science of Revenue:
Tesla Model S: The Disruptive Marketing of an Electric Car
 

 

x

Hi!
I'm Freda!

Would you like to get a custom essay? How about receiving a customized one?

Check it out