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Transcript of Marketing
Technology has become a large part of the Millennial's lifestyle, therefore the demand for online-based services such as mobile apps, Internet banking and online shopping have increased. This makes the Millennials the idea consumers to target for the mobile application, 'Signature Brands.' The Millennials More educated population People in Australia has become more educated, allowing them to acquire a better lifestyle, which in turn results in individuals gaining a greater amount of disposable income
This rise in income increases the demand for quality products
‘Signature Brands’ offers customers with quality merchandise and is directed at those at the upper end of the income ladder, who can afford this added benefit of quality. Because the economy is constantly fluctuating, it causes movements along the demand curve.
When the economy experiences a recession or depression, demand will decrease due to a decline in the purchasing power of individual’s incomes.
This reduction in consumer’s disposable income causes individuals to become savvier when purchasing goods and services, resulting in consumers turning to cheaper alternatives or substitute goods (behaviour).
This implies that Signature Brand’s revenue, during an economic downturn, will fall as consumers move away from quality products to look for value-for-money The natural environment is centred on natural material that are utilised for the creation of commodities. Natural resources are scarce, therefore needs to be used with care. Companies need to look for efficient ways of dealing with the natural environment. The technological environment is rapidly changing; therefore new markets and opportunities are constantly created. Consequently, these new markets and opportunities replace older technology. Therefore, the technology market needs to be monitored carefully. If it is not, products maybe come obsolete and companies may miss out on new products and market opportunities The Glamazons buy high quality products, top of the range brands and also demand for the best available service. This need for luxury goods and services for these individuals is a way of self-expression. Signature Brand will need to work on building customer loyalty and confidence in order to build long-term customer relationships Glamazon's view of themselves People's view of organisations The demand for environmental sustainability has increased, therefore as a response to this increase for 'green' products, Signature Brands will be using recycled packaging, which will aid in reducing package wastage Strength Competitive pricing is a vital element of signature brand’s overall success, as this keeps them in line with their rivals.
Keeping costs such as shipping and production lower than their competitors would allow Signature Brand to pass on some of the benefits of that extra revenue onto consumers.
High quality products/services is a vital strength, helping to ensure customers return to Signature Brand.
Signature Brands have a strong emphasis on development and innovation with regard to their products/services, which will strengthen their overall performance. Weakness Not reducing costs in the same way as their competitors', means that Signature Brand is outlaying more of their profits. Having higher costs than competitors is a major weakness.
A limited customer base will be a major weakness for signature brand, as it means they have less people to sell or market their products and services to Opportunities Grasping the opportunity to expand the customer base is something Signature brand could aim for, either geographically or through new products.
Expanding the product/service lines by Signature Brand could help them raise sales and increase their product portfolio. Threats Consumer lifestyle (being affected by recession) could lead to decline in the demand for Signature Brand’s products/services
Changes in demographics could threaten Signature Brand App
New products/services from rival firms could lead to Signature Brands products/services being less in demand, as their product becomes obsolete
Extra competition and new competitors entering the market could impose a potential threat to Signature Brand
The actions of a competitor could be a major threat against Signature Brand.
Price wars and price cuts between competitors could damage profits for Signature Brands.
Rising costs could be a major downfall for Signature Brands. The 4P's Apps have become a fashion icon for the technology Industry
Signature Brand would provide quick and easy access and also provide updates of new arrivals of the fashion products in stores
Signature Brand App has special features that the customers could use to make choices and purchases without having to visit stores
Customers using this App would be able to share its content with anyone on FB, twitter
Stores using this App would be able to advertise in store specials and send notifications to its users.
The fashion industry is highly competitive and fast moving; therefore its products tend to have a short lifecycle
Competition amongst fashion retailers forces businesses to refresh their ranges a number of times in a year
Products need refreshing to avoid the dip in sales during the Saturation stage of the life cycle , which could result in an early decline. Product Place Signature Brand App would be available on iPhones, smartphones, iPads, tablets, websites of the participating stores, Facebook and twitter.
Purchases made by consumers using the App, would be able receive their goods through the signature brands warehouse, where stocks from various stores are store
Customers would not have to pay for shipping costs, when they have purchased above a certain amount.
Signature brands would reduce the inconvenience faced by consumers to have to buy each product from different stores.
Designer manufacturers deliver adequate amount of stock, which is available on signature brands to signature brands warehouse.
Products get delivered to customers from signature brands warehouse with in 36hrs of receiving the order. Price
The app, ‘Signature Brands’ will be free of charge
The merchandise that will be sold in the app will be based on competition-based pricing, which is prices that are centred on their rivals tactics, expenses, prices, products and services.
This type of pricing strategy is used when customers focus their judgments on the market offerings’ value on the prices that rivals charge for similar commodities.
Signature Brands will be using product-line pricing, which can be defined as an placing prices to all product lines
Signature Brands will be using discount and allowance pricing as their main price-adjustment strategy, which is defined as reducing the price of goods or/ and services to reward customers for their replies, for example, for promoting Signature brands app Price Strategies Product-mix pricing strategy Price-adjustment strategies Mobile phones provide many promotions opportunities.
It would provide information that will assist customers in making a decision to purchase a product or service.
Successful promotion increases sales so that advertising and other costs (production) are spread over a larger output
Mass media advertising eg. Websites of stores, Facebook, twitter
Sales promotions - such as discounts, gift cards or competitions
Branding –from the layout, advertising campaigns, packaging and point-of-sales displays Promotion
Use of focus groups and surveys to check your product's market acceptance
Have prospective customers to test the product's features.
User feedback gathering, lead generation (through paid advertisement), continuation of word of mouth campaigns, and immediate submission of the app to various mobile apps review websites.
On –going maintenance of the App and up grading of items for sale in the App store
As more consumers own smartphones, the popularity of mobile apps, such as the eBay app, has grown. According to Consumer Affairs Victoria ‘an item is purchased every 15 seconds in Australia through eBay mobile apps and between five to 10% of Australian iPhone owners log into mobile app everyday’
Research from eBay reported in the Department of Broadband, Communications and the Digital Economy 2010 study Household E-Commerce Activity and Trends in Australia indicates that around one in four Australian mobile phone owners use their device to make an online purchase. The report further notes that:
• 43 per cent (of consumers) spent between A$50 and A$250 a month shopping via their mobiles
• 17 per cent spent over the A$250 mark monthly. MARKETING OBJECTIVES
Molitorisz, S, ‘Tribes of the Sydney’, The Sydney Morning Herald, 7 January 2010.
Kotler, P, Adam, S, Denize, S & Armstrong, G 2012, Principles of marketing, 5th edn, Pearson Education Australia, Frenchs Forest, NSW.
Sloman, J, Norris, K & Garrett, D 2010, Principles of economics, 3rd edn, Pearson Education, Sydney.
Business case Studies 2012, Marketing theory, viewed 6 September 2012, http://businesscasestudies.co.uk/business-theory/marketing/marketing-mix-price-place-promotion-product.html
Consumer Affairs Victoria 2012, Mobile commerce: opportunities and challenges for consumers, businesses and regulators, Victoria, viewed 12 September 2012, <http://www.consumer.vic.gov.au/search-results?s=mobile+commerce&sz=10&pg=1&ct=63&m=0>.
Hearst Communication Inc. 2012, The macroenvironmental factors affecting the clothing industry, viewed 25 September 2012, <http://smallbusiness.chron.com/macroenvironmental-factors-affecting-clothing-industry-37254.html>. Reference List