Create Products And Services Customers Want -Myassignmenthelp.Com

Question: Discuss About The Create Products And Services Customers Want? Answer: Introduction This marketing management report is comprised of analysis of customer behavior of the target customer segment and strategies to change it to the desired product. The high involvement nominated product is Samsung Gear VR and the compared product is HTC Vive VR. Both the products are categorized as an entertainment product, which comes under esteem, needs stage of Maslows need theory. Further details of the products are mentioned in the description section of the report. These are high involvement products, which undergoes various steps of decision marketing by the customers. Various factors regulates the decision making process of the customers that are discussed in the report. The purpose of the report is to change the preferences among the target customers segment of Roy Morgan identified in the individual report. The first part of the report is comprised of the customer description and insight. As a matter of specification, the report would focus on the customers, who are aware of the specialties of Roy Morgan. Therefore, one of important components here is prior purchase experience. Theory of customer behaviour is included in the process to identify the selection process. This section would peek into the behavioral approach of these customers, when their peers and relatives offer them suggestions about the newly launched models of Roy Morgan. Here, there would be variations in the behavior of the customers. Some would just ignore the suggestions, as they think that what they know is enough. Some others would be interested to know more about the new models, offers and schemes on the purchase of the Roy Morgan model. This section of customers wants to enhance their buying behavior. The following part of the report discusses about the nominated products value proposition and the marketing mix strategy used by the company. The goals and objectives of the report identified in the next section for the competing product along with the value proposition and marketin g mix strategy to achieve the proposed goals. The report ends with the justification of selecting the strategies selected and the chances of success using the proposed strategies the marketing of the company. Target Customer - Description and insight Marketing theories identify the customers differently based on their purchasing behavior. Several behaviors are identified which can be like, amount of money, post purchasing behavior spending attitude and peer influence. The selected target customer for the purpose of study is the socially aware segment of Roy Morgans value segmentation. The segment of people holds this thinking pattern falls under the highest socioeconomic group in the Australian community. Age based demography of this group in Australia ranges from 18-40-years-old. Customers behaviour on purchasing any product could be described using the Maslows hierarchy theory of need that identifies five kinds of need visible in human kind. They are psychology, security, social, esteem and self-actualization need (Lester, 2013). Physiological needs identify the basic needs where the consumers are reluctant to think about the price and where the quality of the product is of main importance. Security needs comes after completion of physiological needs that covers safety, stability and law and order. Social needs on the other hand are the needs belongingness to feel the essence of ones presence as a social being. Esteem needs comes at fourth stage that seeks for achievement, respect, independence and prestige. The final stage varies person to person as per their personality and life goal. People aim to achieve the targets in this stage (Block, 2011). The product under study for the given target segment comes under the esteem need which is a psychological need; hence need more verification before consideration. Consumers Decision-making Decision making process goes under a several stages where stage of purchasing a product is the need recognition where the nominated product is already identified as esteem need. It is due to the satisfaction it provides to the consumer by the mode of achievement. The second stage is information search where the customer seeks for the details of the product. Next one is the alternative searching where the consumer seeks for alternative products available in the market. Purchasing decision is the final decision of the consumer based on the analysis of the previous stages. Post purchase where the consumer justifies their purchase (Solomon, 2014). Purchasing Behaviour Pricing level, risk level, quality feature, and high and low involvement are the factors that plays curtail role in decision-making. Pricing level The socially aware consumers are concerned about money and takes longer time in taking decision. However, they take less time in physiological products and longer time in esteem needs. Risk level Risk level is associated with the relation between accurate price and quality of the product. The esteem needs requires verification and confirmation before making decision. Quality feature It comes in accordance to every product starting from physiological to esteem ones. High and low Involvement Low involved products are those that requires less time in decision making such as the physiological products. Whereas, esteem product requires longer time and process for decision making this is why it is considered as high-ended product (Schiffman et al., 2013). Nominated Product Nominated Product Samsung Gear VR Manufacturer Samsung and powered by Oculus Price $ 99 USD Colour Black Features Supreme comfort Convenient control Super AMOLED display Light Weight Sensor: Accelerometer, Gyro Sensor, Proximity Sensor Availability Available in Samsung stores, third party stores and online market Compatibility Samsung Note 5, S6, S6 Edge and S6 Edge+ (Gear VR, 2017) Table No. 1 Value Proposition The value proposition of Samsung Gear VR focuses on the promotion of the features of the products. Various features like comfort, easy to use features have been highlight in their website. Compatibility with other devices and other inbuilt features are mention in details. The company also focuses on the benefits of using Gear VR and the experience the consumers can have from using it in their value proposition. The presentation of value proposition is up to mark as Samsung has followed the golden rules of value proposition for their Gear VR product. However, they failed to highlight the target population and explain who can use their Gear VR. Moreover, Samsung did not use any of the boosters of value proposition for their product (Lindi? Marques da Silva, 2011). Marketing Mix This is the combination of tactics and strategies used by a company to promote product in the target market. Traditionally the marketing mix is comprised of 4Ps that are product, price, place, and promotion. Additional 3Ps are added in recent year that are process, physical environment and people. Product Samsung launched their product in November 2015 along side of Galaxy s7 and s7 edge. The product was build for everyday consumers. The product is capable with multiple Samsung devices of their own brand like Samsung Note 5, S6, S6 Edge and S6 Edge+. One can find their Gear VR in any of the Samsung Stores in the market. Besides their own stores, Samsung made it available in other third party stores, supermarket and in various online stores. The device provides a supreme level of comfort to their consumers. Like their easy to use Smartphone that are available in the market, they made the device keeping the same perspective in mind. Super AMOLED provided in the Gear VR aims to provide an experience that they never had. Moreover, they made the device lightweight for distinguishing their product from the available devices in the market (Chikweche Fletcher, 2012). Price The price of the product kept under $100 USD to attract customers from every economic background. Moreover, the other similar devices that are available in the market have higher price range with greater facility. However, the product of Samsung is to target the lower and middle class population. Place Samsung Gear VR is available in every corner of the world. One can find a Samsung store almost in every corner of the world. However, the product is also available in the third party retailers and in e-markets too such as Amazon. The product is also made available in the companys own official website (Ataman, Van Heerde Mela, 2010). Promotion Samsung applies the price skimming theory in every one of their product. It is to attract and build the customer base before others can enter the market. Afterwards, they turn back to their actual promotion to keep up in the market increasing their sale. Even in the existing market, they use this policy to pull the customers towards them in the first days of the product launch. This case is no different from the case of smartphones. Moreover, the sample promotion is opted for the promotion that let the customers to experience the product before purchasing. The company also uses social media marketing as a primary marketing process of the product to attract the customer. It is also justified in case of Australian market as most of their population shows their noticeable presence in the social networks. Social media other than networking is also used as primary promotional activity (Yasanallah Bidram, 2012). Table No 2 Competing Product Compared Product HTC Vive VR Manufacturer HTC Valve Corporation Price $ 999 AUD Colour Black Features Lightweight Deluxe Audio Strap Vive tracker Real world awareness 110 field view 360 motion tracking 1080 x 1200 resolution with 90Hz refresh rate Dual AMOLED 3.6 diagonal Availability Available in HTC stores, third party stores, HTC official website and online market Compatibility Bluetooth, SD Card, wire connection with PC (vive.com, 2017) Table No. 3 Goal and Objective Goals are the principles set by the companies to take the necessary decisions for the betterment of the company. Whereas, the objectives are the specific and measurable steps that are taken by any company to meet their goals. HTC needs something out of line to sell their new product, HTC Vive kit in the market. Goal over three years set for the company for competing the nominated product in the market. They are Objectives Goals Measuring Unit 2018 2019 2020 Brand awareness Percentage of the target market aware of the product 25% 45% 70% Growth Annual increase in sales ($) 3m 5m 8m Image Percentage of the target market likes the product 25% 35% 55% Brand Loyalty Percentage of people suggest the product to others 10% 25% 50% Table No. 4 If HTC personnel conduct consistent evaluation of the achieved growth and the steps taken to achieve this growth, estimations regarding the effectiveness, feasibility and appropriateness of Vive Kit would seem to be an easy task. Moreover, evaluation would bring to the forefront the drawbacks of Vive Kit if any. This would enhance the awareness of the personnel regarding the additional steps needed to upgrade the standard and quality of Vive Kit for achievement of large scale customer satisfaction. Value Proposition A proper value proposition of HTC Vive can help HTC to turn the target segments interest from Samsung Gear VR to their product. The analysis of Samsung Gear VR shows that they have failed to specify the target population and who can use their product. HTC can utilize that in their value proposition along side with their product description. Their product serves range of purposes, which they should highlight in their value proposition and make clear distinction form Samsung Gear VR. Moreover, boosters of value proposition like free shipping, fast shipping, and bonus for the customers and many more could be utilize in their value proposition to grab the customers attention and make them think for it. Besides, they can also offer some free trial of their apps and games included in their Vive kit for a specific period after purchase to provide the extra benefit of purchasing their product (Osterwalder et al., 2014). Marketing Mix Product The product is available in any HTC stores and HTC official websites. Besides, it is also available in any third party stores and in the online market. It is lightweight with deluxe audio strap that makes it comfortable to use. New vive tracker helps one to keep track of their activities in the device. A front facing camera provides real world awareness while using the device. 110 field views with 360 motion tracking give one experience of supreme quality of virtual reality. 1080 x 1200 resolution with 90Hz refresh rate and Dual AMOLED 3.6 diagonal brings the extreme quality VR effect for the consumers. It is not limited to watching videos in VR. One can play games, attend virtual meeting, parties with HTC Vive kit. Application of this device is limitless (Khan, 2014). Price The price of the product is $ 999 AUD targeting the upper income group in the target market. There are many competitors providing similar product in low price where the features are also limited. The new HTC Vive VR brings all in one package of VR device that enables the customers to use every aspects of VR in one single device. The complete HTC Vive kit with controller is available in the price with extra benefit purchasing from the HTC official website. Place The product is available in every corner of the target market and available in in every third party retail store to reach out most of the target population. It is also exclusively available in HTC official website and other online stores (Armstrong et al., 2015). Promotion The company should utilize every possible aspect of social media marketing to attract the target customer segment with special focus on the social networking. Social networking is use by every age group in Australia, which enables them to address the larger population segment in a single shot. Moreover, they should provide sample to the retail store to let the consumers experience the features of the product before making decisions. Customers should be included in HTCs promotion, where the buyers will be sharing their experience and satisfaction using the product (Gordon, 2012). Table No. 5 Justification The value proposition proposed for the HTC Vive kit will definitely draw attention of the customers as they are set different from Samsung in more than one cases and provide more information of he benefits thee customers will have using the product. The features are well distinguished from the Samsung Gear VR where the customers are given opportunity to judge themselves the extra benefit they can have out of it. HTC specifies the particular segment of the population the product is made for which will give extra benefit to the company. Last but not the least, the booster proposed for the value proposition of HTC will draw more attention and make the customers think twice before going for Samsung Gear. It will supplement in building customer loyalty for the product. The high price is well cover with the extra benefits customers are getting from the product. The marketing strategy of HTC is set unique in promotion that will help them meeting their goal of brand loyalty and image. Goals of awareness, image, and loyalty are meet with the value proposition and marketing strategies, which will facilitate in generating growth of product sale. Conclusion The report successfully demonstrates the value proposition and marketing strategy for HTC Vive kit to compete Samsung Gear VR in the Australian market. The company will be able to attract the target segment and change their preference with the proper implementation of the proposed strategies. The goals and objectives set are easy to achieve with the unique value proposition and strategy as mention above. The justification section in the report could be considered as the evidence of its success of the strategies suggested. However, certain recommendations would expand the scope and arena of HTC business. These are: Adopting search engine optimization for conduct market research for enhancing the network chain Providing access to the customers by letting them test the samples of the Kit in the local stores. For this, the company needs to possess a good stock of Vive Kit. Here, stable relations with the suppliers and distributors would be crucial. For the promotion of the Vive Kit, the customers needs to be included, as they as the keystone for the company to achieve success. In order to avert encountering instances of inflation, fluctuation in the prices of the raw materials, the managers of HTC need to indulge in meetings with the members of Trade Union. This is important for providing the middle class customers with an opportunity to fulfill their passion of buying branded products like Vive Kit. The means of survey and feedbacks need to be adopted for gaining an insight into the customer approaches towards the newly launched Vive Kit. This can be done through the means of social media. Putting the survey and feedback forms on the social networking sites and official websites would increase the supply network of HTC. Constant evaluation of the undertaken steps is needed in order to assess their effectiveness, feasibility and appropriateness in terms of the identified and specified goal of business expansion. References Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015).Marketing: an introduction. Pearson Education. Ataman, M. B., Van Heerde, H. J., Mela, C. F. (2010). The long-term effect of marketing strategy on brand sales.Journal of business-law,47(5), 866-882. Block, M. (2011). Maslows hierarchy of needs. 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