DISTRIBUTION, LOCATION AND TIMING

University: TUI University
Course number: MKT301
Module Two
SLP
Ercilia Talbert
Dr. Jonathan Freeman
12 Apr 2011
DISTRIBUTION, LOCATION AND TIMING
The service will be distributed through the company`s website and it will involve downloading the games through the same portal. Payments regarding the purchase of these games will be made through trusted online payment service providers found within the region such as PayPal Kenya. The services as indicated earlier will made available in Nairobi, Kenya; this is the target market for our company. The market is not yet fully exploited and this is a chance to offer such services to that region. 24/7 services will be offered since all downloads and transactions will be made online. The customers will order the services online and they will be required to register for an account for free in order to enjoy our services.
Time is a crucial factor in the creation of a market entry strategy. The creation of an image via promotion and the development of an intelligence system take effort, money, and time. Brand names cannot be created overnight. Enormous investments are required in the promotion campaigns. Transaction costs are also required and they are a crucial factor in the development of market entry strategy and can become a hindrance to the international trade. Costs incurred include bargaining and search costs. Language barrier, risk, logistics costs, and physical distance hinder the direct monitoring of the trade partners. These factors are very important when the company is considering entering a new market (Agriculture and Consumer Protection, 1997).
VARIATIONS BY TARGET MARKET
Targeting, positioning, and segmentation all combine a three stage process. The first stage is the determination of the type of customers that exist in that location (Perner, 2010). In this case, the customer types being targeted are of the ages between 13 - 25 years. The second stage is the selection of the customers who are fit to be served and, the last stage is the implementation of the segmentation by optimization of the company`s services and products for that segment (Perner, 2010).
Segmentation entails finding out the existence of different types of consumers and their varying needs. Experience has shown that companies that concentrate on meeting the desires of a section of consumers over the others have the tendency of becoming profitable. Concentrated strategy involves one firm choosing one of the several customer segments in existence and leaving the other section to competitors. The target customers are usually offered services at low prices (Perner, 2010). For this company, concentrated strategy is the best because its focus is on a section of the consumers (13 - 25 years old). The services set to be offered will be provided at a low price.
There are variables that can be utilized for segmentation:
* The first variable is demographic variable and it refers to the individual statistics such as gender, location, family size, income, education, and ethnicity. Segmentation can be used on the basis of values and lifestyles.
* Some consumers prefer to be similar to others while others want to isolate themselves from the crowd.
* Behaviour can also be used for segmentation. Some of the consumers are brand loyal; these customers have the tendency of sticking to their preferred brands even if there is a competitor in the market.
When targeting one of the segments, the choice depends on several factors and they include; (a) how the existing segments are served by the other manufacturers, it is quite difficult to appeal a segment that is already being served well, (b) the largeness of the segment and how it is expected to grow, a quickly growing segment tends to attract more competition (c) the capability of the company to attract a particular type of group of consumers, many firms have an already established reputation (Perner, 2010).
Positioning entails the implementation of the target. The most successful companies fall into three categories; (a) operationally excellent firms, (b) customer intimate firms, and (c) technologically excellent firms. Our company falls into the first and last category. Operationally excellent firms sustain a strong competitive advantage by sustaining an exceptional efficiency. This enables the company to offer reliable services to the consumer at a lower cost than those of the well run and less organized competitors. Emphasis is put on the low cost and it is subject to the performance that is reliable and less value is given on the customization of the specific customer. Technologically excellent firms offer the most advanced products that are currently present through the latest technology and constantly maintain a lead in innovation (Perner, 2010).
The standard used to determine the customer`s position includes customer coverage, the existing customer relations, and current market shares within the target market. The relative position of the customer within the market can be evaluated using a rating system. For example, 1 can represent a big gap to the best competitor and 5 can represent a far superior gap to the best competitor. Determination of the product position can be based on the evaluation provided; an example is by questioning an expert or areas that deal closely with the retailers and the customers. It is imperative to have a record of the customer`s feedback such as the win/loss analysis and customer satisfaction, and the statements of the analysts. Ratings such as unsuitable and perfectly suitable can be sufficiently used (Strauss, 2009).
INFORMATION NEEDS
The target market for this company is of the people aged between 13 and 25 years. These people will require a significant amount of information about the company and what it offers and at what cost. Other than the requirements mentioned there is other information required such as the availability of the company and the time their services are offered. The address, specifically their physical address may be required as the customers may require tangible services. These matters need to be taken into consideration and offered in order to attract a significant portion of the potential customers.
There are other things that may be considered when assessing the information needs of the company. It is imperative to note that information creates a link between the market and the company. The ever increasing amount of information that is available to the marketing managers often leads to an environment characterized by complex decision making. Without the appropriate marketing information, decision making will just be more than guessing and at times it can be economical and can lead to other significant mistakes and the collapse of the company. The marketing management requires accurate, reliable and timely information in order to plan and make decisions. The managers require information in order to reduce risky and inco...