Creating the Marketing Mix for (MM)
Mobile Manufacturing’s New Phone
Mobile Manufacturing’s New Phone
Marketing & Pricing Strategies Targeting “The Founders” (Generation Z)
Thomas Mezzacapa
Applied Managerial Marketing (MKTG630)
Unit IV: Individual Project One
Colorado Technical University
2016: October 31st
Professor: Dr. Freddy Lee
MEMORANDUM
Attention: Michelle Dietrich
President: Mobile Manufacturing
c/c: Elena Steokovich
Electronics Designer/Engineer
from: Tommy Mezzacapa
Marketing Consultant
October 31st 2016
Creating the Marketing Mix for (MM) Mobile Manufacturing’s New Phone
MARKETING STRATEGIES
Things are really picking up for the new release of MM’s new phone. It is time to decide on a marketing strategy that will successfully attract the attention of our target-market: The Founders, aka Generation Z. This is a powerful market that will be a large part of our consumer base and we need to develop a marketing campaign that really grabs hold of these youth in a catchy and trendy way. As discussed in previous memos and e-mails, we’ll also need to address the parents of The Founders, understanding that they will likely be the primary financial source for the target to make their purchases. In this memo I’ll discuss how were going to implement the new, creative strategy. Additionally, we’ll discuss pricing strategies that will warrant the cost-per-item, distribution and how we’ll adapt to the cell phone market share with competitive, comparable pricing.
The marketing department and I have been working together in the development of the target market and what would be the most effective strategy to really channel this unique and competitive market. We’ve determined that because there are two separate generations in our target market: the Gen Z’ers and their parents, that a digital, promotional platform that targets the youth, as well as a more traditional approach with the Millennial and X generations to connect with the parents. This will require strategic and creative thinking, and we’re up for the task. Welcoming the challenge of our “double-demographic,” a well-thought campaign can be just the edge that MM needs to regain market-share.
The Gen Z’ers are constantly connected to their devices. There isn’t a waking moment that transpires without them on their device or thinking about that next Tweet, or the latest, trending YouTube video. Everyone that uses these social platforms understand that they are riddled with advertising. Most of the 2000 and later youth have became immune to advertising and learn to just block it out; like waiting the five-to-ten seconds for YouTube to give them an opportunity to “Skip This Ad” option that appears on the video. It is with this challenge that we really need to concentrate and create a plan that will keep the ads playing; making them ‘want’ to watch the commercial instead of skipping on through. The same concept goes toward the parents of this generation, they’ll likely have a DVR device and will simply fast-forward through the commercials. This is a difficult challenge; yet, one that is obtainable with some creative marketing.
In these technological times, we can produce an effective video ad without acquiring a lot of expense. With this video campaign, I think it will really be a great way to illustrate the amazing new camera and our educational apps on our phone. Using the actual camera from the phone, utilizing it’s amazing video zoom and after-effects integrated on the phone to shoot the all of the videos needed. Taking this a step further, start a web, social-media campaign challenging every new owner of MM’s phone to create and share their favorite videos to mobilemanufacturing.com, and subsequently to their social-media platforms.
The web-video ads and television commercials will be fast-changing video graphics with choppy editing; kids skateboarding, jumping bikes, trampoline flips, kicking the winning goal in slow-motion, laughing together after school, group-video shots with everyone in a pyramid then collapsing, all with sound-effects and music added through the device. This youthful, trendy approach will really help draw the target market in, seeking to upload the best video and striving to push the devices possibilities with creative stimuli and appealing videos. The best videos, voted on by MM web followers can be used in the actual, produced ads for television and the web.
Using a similar approach for the parents of The Founders, you could show the students actually using the educational apps to connect with teachers, school and parents all in one. There can also be creative spots where the student uses the DuoLingo app for instance and is learning Espanol, and then cutting to a graphic of an A on their test. At the end, the parent hugging the youth congratulating them on a good job. This will help solidify the market goals with both parts of our target market and build a good morale for all users of our new phone, and in turn, increase market share.
PRICING STRATEGIES & DISTRIBUTION PLANS
There are several things to consider when addressing pricing strategies. There is standardized pricing when the prices stay the same in all geographic markets: domestic or overseas. This is a process for pricing that is administered and it keeps the marketing campaign as it pertains to pricing simplified. The alternative is a customized pricing strategy. This is built on the concept of setting unique prices for each geographic region, therefore, meeting the specific needs of each of the local markets targeted. This is due to the fact that each unique environment has their own perceptions toward how much a phone should costs, even the higher-end phones like ours.
Some other things to consider with pricing is illustrated in this excerpt from the LA Times article titled “New Cell Service Pricing Strategies Show How Industry Is Changing.” The author, Brian Fung writes: The fact that cellphone companies are, more accurately, wireless companies is only the first big thing that this new pricing strategy will reveal. The old term is a holdover from the era when the only place to get a cellphone was from the likes of AT&T and Verizon, but that has completely changed now. For years, you’ve been able to buy an iPhone directly from Apple — arguably a real cellphone company in the sense that it actually makes cellphones — or an Android phone from Google. You can even take those devices with you from carrier to carrier (Fung, 2015).
We’re also about to confront, in a very direct way, the actual cost of our devices. Consumers who thought an iPhone was really as low as $200 are in for some sticker shock when they find out that it’s more like $649. Just as insurance companies shield us from the true cost of healthcare, device subsidies have shielded many Americans from the true price of their devices (Fung, 2015).
That knowledge could prompt consumers to change the way they think about their next smartphone upgrade. Will consumers start favoring cheaper smartphones, putting pressure on premium smartphone makers such as Apple to make their devices more affordable? After realizing how much we’re truly paying for cell service, will we begin to expect better service and treatment? Will it change how much data people buy? (Fung, 2015).
Fung brings to light a whole new approach to the way we, as consumers, view the way the cell phone industry makes money. Mobile Manufacturing has a unique place in the market place because, like Apple, we create our own devices and do not rely on the service side of the market. That being said, MM needs to work with several different cell-service providers to ensure that our phones are being purchased with the service agreements that our consumers will have.
Additionally, MM will need to offer and introductory price in order to gain the sales to really boost the campaign. Going with the standardized pricing, keeping the pricing the same in all markets will cut cost on advertising by eliminating the need for multiple commercials in different geographic areas. The introductory price could be paid in partial by the service providers, knowing they’ll get a good return on their investment with the high-demand for our phones. This price, although introductory, cannot be too low to where the consumer automatically believes that they are buying a cheap device, yet not so high that it is out-of-reach for some consumers.
Phones can range from the $25.00 flip-phone throw-away/burner all the way to $1,000.00 for the latest Motorola. Apple has no problem charging up to $800.00 for their new phones, right when they hit the market, knowing that their customer will pay it, even go as far as waiting in line for days just to have it. I believe there is a happy medium that can be obtained with a sensible pricing strategy. Comparably, our phone should be able to compete with the higher-end phones of Apple and Motorola, therefore should be priced accordingly. A price that says, we are offering a high-quality device, yet cheap enough that it is feasible to actually move product to a larger consumer base.
With the aid of service providers paying part of the costs of the device in order to ensure their continued success with selling the service contracts, we can offset the production costs a bit during the introductory period. This partial offset should still show the devices actual costs of $349.00 and then the discount for signing up with said provider. The phones can then be bought directly through mobilemanufacturing.com, and other various sales sites like Amazon and NewEgg. With these retail, online-shopping experiences, shipping is usually either free to consumers or is expected to be paid by the purchaser. Utilizing these shipping antics, we’ll be able to keep the distribution costs down. There will still be a need for our phones to be delivered at different service-provider stores. In order to keep distribution costs down, we could keep the trucks on a bi-weekly schedule, delivering on a demand basis, eliminating the excess costs of multiple trips with our shipping vehicles.
By targeting the youth of our demographic with our “Upload your created vid” we’ll be able to start a worldly trend, having a competitive edge by offering something that other manufacturers do not have; adding to the overall appeal of the phone. There will be a follow up in chosen, demographic areas with Direct Mailers sent to the parents boasting our new MY SCHOOL CONNECT options and the competitive pricing, as well as showing other educational values of our device. These combined with a huge social-media campaign with videos and animated banners placed on targeted sites, we should see a nice boost in sales and really send our phone to the list of “the-next-big-thing.”
Thank You Sincerely,
T. Mezzacapa
Marketing Consultant
References:
Fung, B. (2015, August 10). New Cell Service Pricing Strategies Show How Industry Is Changing. In The LA Times. Retrieved October 30, 2016, from http://www.latimes.com/business/la-fi-cell-contracts-20150811-story.html
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