Automatic Price Protection APP Policy-Free Samples for Students

Question: Should Tweeter keep or abandon the Automatic Price Protection (APP) Policy? Answer: Introduction Bloggers have put a claim that olden days marketing, that is: 4Ps.branding marketing plans, are obsolete. They claim that these ways have instead been replaced by new methods such as Search engine optimization, marketing automation, and social media. The claim is not valid as no one can create social media marketing without a strategic plan for marketing. It is impossible to add tactics to be used in marketing without being aware of the business goals, its objectives, and measures to be taken to ensure the success of the business in a competitive environment. A strategic marketing plan should address the four issues below: First, it should provide the current situation assessment. This is achieved through analysis of business strength and weakness, opportunities and threats, and a summary of the market space. Secondly, a sound marketing plan should provide the business objectives; mission and vision.it should give detailed information on market segmentation and customers. Thirdly, it should offer a crafted marketing program. The pricing strategy to be used and channels for product distribution should be stated. Lastly, it should determine the business controls and measurement processes. The critical success factors should be indicated, budget and resources alongside critical indicators of performance (Content Marketing Institute, 2017). Strategic Marketing plan brings a lot of benefits to the business. First, having a written marketing guide, place the business in appoint of ensuring it achieve its goals and objectives. Secondly, marketing plans allows the company to exploit steady messaging externally and internally. Constant messaging creates an efficient business since it gives the customer and employees a chance to understand what the business offers and the way it does it. This will aid them to work towards a common goal. This leads a rise in business profitability as it experiences an expense decrease while an increase in the market share and revenues (Smallbusiness.chron.com, 2017) Key issues The decline in the electronics market in New England was contributed by the following factors. First, rapid market growth during 1980 led to new entrants in the market that caused competition, particularly at the lower end of the retail market. Secondly, there was growth in market penetration of colored television and VCR.It brought inhibited the future growth in those product portfolios. Lastly, between 1987 and 1988, New England market was hit hardest by the economy squawking at once developing United States. Situation Analysis 4C Foundation of any strategic market planning is situation analysis.t include external and internal factors examination of factors affecting any business (Anon, 2017) Company Sandy Bloomberg was the chief executive officer and founder of Tweeter etc. in 1972.The company was based on manufacturing products that were or high end and middle audio and video electronics customers. In 1986 the company had 13 stores, in 1996 the company and expanded to 21 store chain. The company adopted the automatic price strategy protection policy due its competitor who was highly Customers could visit around two or three business store before they could purchase a product for a better value. The company categorized its customer into four types: First, entry-level customers: This kind of customers was interested in purchasing the lowest priced product in a given category. They did not mind about the product quality or customer service. Secondly, the price biter: these type of customers were very keen on the best deal. They were cognizant of the price but very keen on the quality of the product and service of customer support. Thirdly, convenience customers, they prefer to pur chase products on shops that they were more familiar with because it allowed them to purchase goods in various categories in a single trip. They did not put more consideration into the price, quality of the product or the service. Lastly, the service customer: they were more concerned about the level of product quality and service offered by customer support. Price was not a significant concern to them. Competition Tweeter faced competition from Lechmeres. As Tweeter focused on the middle end product, Lechmere concentrates on the entry-level product. During ads posted by Lechmere and Tweeter greater disparity on prices was observed. The consumer focused on price rather than quality. Despite the product same product of the same level posted the same price, Tweeter was regarded as expensive. Collaboration In 1988, Tweeter became part of progressive Retailers Organization. This move was taken to aid in the competition that was price based. The purchasing consortiums that were founded in 1986 comprised of, small high-end consumer electronics retailer throughout the United States. The outcome of this movement was that it enables Tweeter to acquire prices from producers that were in a match with those acquired by its competitors. New marketing strategy A new plan for penetrating the market was developed by the Tweeter management team during a retreat. As per the review of the customer survey and group research results, the company received a high ran for the quality of its product and services offered by its customer support. On the other hand, the company received low ranks for its price competitiveness. According to the research conducted, it was clear that price influenced purchase behavior of a business .the advertisement and promotion on price was significant in selecting a store. The management of following factors to improve the positioning of Tweeter. Abandonment of the sale. The first thing to consider in the new strategy was to bring to an end the promotions conducted on the weekly sale. Lechmere was overtaking Tweeter despite the efforts placed on an advertisement by Tweeter. According to Tweeter Herschman, the overreliance on their weekend sale drew attention from there excellent customer support and quality products. These are because the business no one listened to them due to the business high price image even though they were competitively priced. Abandoning the sale would bring more focus on Tweeters superiority edge short of biased comparison encouragement with models and products that cannot be found elsewhere. Automatic Price Promotion: new approach Automatic price Protection was a fundamentally new concept, intended to converse Tweeter assurance to consumer service and price effectiveness. The primary challenge of this new concept was for consumers to comprehend it. The new concept had an idea of sending a rebate check to consumers for 100% of the variance in price. It would be achieved after Tweeter guarantee to monitor competitors prices and upon finding the lower advertised price. APP move was a major move. While many retailers were practicing price protection, giving back customer 100% refund in case, they find the difference between the price they purchased goods and price advertised by competitors to be lower within 30 days of transaction. For example. Suppose a consumer purchase a medium level VCR at Tweeter and paid $399, then come to find that the same product was going for $300as advertised by the competitor, the customer can present the ad to any Tweeter retailer outlet for a refund of $99.With automatic price protec tion policy, Tweeter would immediately transfer the money to the customer spontaneous. The Automatic Price Protection policy was applicable only to product that its price was over $50 and the price variance should be greater than $2.This program was managed by corporate Headquarters department .every single day the staff would compare ads in every newspaper in England. Any similar product between Tweeter and competitor was recorded with its details such as model number and date of advertising and entered into the Automatic Price Protection database. Change in marketing mix The marketing mix is a model comprising of 4Ps which enhances the way in which the producer takes a new service or product to the market. Marketing mix aids business in defining its marketing options in term of promotion, price, product, and place, for the business product or service being offered to satisfy the needs of the customer. Product The product is an intangible service or tangible good that I design to satisfy consumer specific demand. Product offered by Tweeter was audio and video electronics. Marketers of any product need to understand the product life cycle and plan for challenges at various stages as each problem is unique on its own.in planning strategic marketing plan, it is essential to identify the targeted consumers of the product and benefits that the product brings (Cleverism, 2017).The company product faced no challenge as it was of high quality and satisfy customers need. The tweeter should consider including a new product of low level to match with its competitor's price wise. Promotion Promotion comprises of various methods in which the consumer is made aware of the products a company offers. Promotion brings about the disparity in digital marketing and traditional marketing (Schenker, 2017).The third approach to restoring credibility in price was to have a shift in the promotion e. to television, radio and direct mail and product collection away from an advertisement in the newspaper. Under the old sale promotional strategy based, the budget for marketing had typically been running at 8% of gross sales. The more significant amount of this money set aside for marketing was used in newspaper advertising in the form of announcing the weekly sale. Elimination of the sale based strategy brought a significant change in Tweeter promotion model. The choice of message and media was shifted from advertising on the newspaper which was weekly sale announcement to television and radio advertisement .the radio and television advertisement put more emphasis on Automatic Price Pr otection policy and price competitiveness. Seasonal buyers guide was launch by Tweeter as a direct marketing strategy campaign. The buyers guide was produced four times per year, and it experienced great success. In 1996, the buyers guide was emailed to an approximate of 325000 individuals and 270000 were estimated to have purchased Tweeter product within previous 18 months. This guide was also made available at all the Tweeters retail locations. Price Consumers will majorly check the price of a product to determine its purchasing behavior (Mindtools.com, 2017).In regards to Tweeter case, the company was overtaken by its competitors because of the price of the product offered by it. Despite having products of good quality and an efficient customer support, the consumer still regarded it as expensive.as this was not the case since Tweeter focused in producing products of average level and high-end level, unlike its competitors who produced from a low level. In advertising as Tweeter advertised for a price of medium level, Lechmere advertised for a low-level price. It made the consumer have a perception of Tweeter products being expensive. The buyers guide would shine some light on the reality of the price of Tweeter products. Place Distribution is a channel in which the company products are being sold. Tweeter had a brick and motor store often known as a physical shop. This targeted audience in far distant places where the store is not located is not reached the presence of an online retail shop would increase the distribution of the product. It would also target the convenience customers who prefer purchasing all their products at the same store. The tweeter should incorporate online retail store in its marketing strategy to have a broader market for its products. Conclusion Tweeter etc. should continue with the Automatic Price Protection policy. Since with the introduction of this new concept the company has received some increase in its revenue. The company should not hack into the voice of the enemy and abandon this new concept. The company should focus on advertising the new policy concept digitally. Finally the business should review its idea of printing buyers guide, but instead form an online platform that could display buyers guide information. It is tiresome for consumers to check through various prices and compare before making a sale. The online will be convenient to consumers as it will enable them to do shopping and price comparison at the comfort of their home. References Anon, (2017). [online] Available at: https://mallbusiness.chron.com/situational-analysis-strategic-marketing-plan-1474.html [Accessed 11 Nov. 2017]. Cleverism. (2017). Understanding the Marketing Mix Concept - 4Ps. [online] Available at: https://www.cleverism.com/understanding-marketing-mix-concept-4ps/ [Accessed 11 Nov. 2017]. Content Marketing Institute. (2017). Strategic Marketing Plan Essentials. [online] Available at: https://contentmarketinginstitute.com/2014/01/back-to-future-strategic-marketing-plan/ [Accessed 10 Nov. 2017]. En.wikipedia.org. (2017). Tweeter (store). [online] Available at: https://en.wikipedia.org/wiki/Tweeter_%28store%29 [Accessed 10 Nov. 2017]. Kar, V. (2017). 4 Cs of Marketing The Marketing Mix. [online] Business Fundas. Available at: https://www.business-fundas.com/2011/4-cs-of-marketing-the-marketing-mix/ [Accessed 11 Nov. 2017]. McClean, R. (2017). The C's and P's of Marketing. What's the Difference?. [online] Customfitonline.com. Available at: https://www.customfitonline.com/news/2012/10/19/4-cs-versus-the-4-ps-of-marketing/ [Accessed 11 Nov. 2017]. Mindtools.com. (2017). The Marketing Mix and the 4Ps: Understanding How to Position Your Market Offering. [online] Available prezi.com. (2017). Tweeter Case Strategic Marketing. [online] Available at: https://prezi.com/w9ic2pjhg08d/tweeter-case-strategic-marketing/ [Accessed 11 Nov. 2017] Smallbusiness.chron.com. (2017). What Is Marketing Strategy Planning?. [online] Available at: https://smallbusiness.chron.com/marketing-strategy-planning-628.html [Accessed 10 Nov. 2017]. Schenker, M. (2017). How the 4 Ps of Marketing Apply to Digital. [online] Brand Driven Digital. Available at: https://www.branddrivendigital.com/4-ps-of-marketing/ [Accessed 11 Nov. 2017]. The Balance. (2017). Learn About the Purpose and Elements of Situational Analysis. [online] Available at: https://www.thebalance.com/purpose-and-elements-of-a-situational-analysis-2295754 [Accessed 11 Nov. 2017].