In general, demand for mobile phones as a whole is likely to be fairly price inelastic. This is largely because there are no particularly good substitute for mobile phones. There are other methodsof communication, such as e-mail and letter writing, but they tend to be poor substitutes.Landline phones are a potential substitute, but most people have both. Moreover, few people purchase more than one mobile phone - hence a change in price is unlikely to bring about additional or reduced demand by an individual for a mobile. At an earlier stage, when mobile phones were expensive to buy, and hence a luxury for most people, reductions in price did bring about a significant increase in demand (suggesting demand was then elastic).
1.0 Barriers to Entry in Sportswear Industry Sportswear Industry in general is difficult for potential new firms to make an entry as the threat or barriers to entry as according to Porter’s Five Forces model are extremely high. Established firms in the sportswear industry already have a foothold on their branding, marketing and product innovation which becomes a tough task for new firms to make a breakthrough in the industry. These potential new firms aiming to enter in sportswear industry do have to take note of the high difficulty in obtaining market share which not many new firms could sustain in. They are also at a price disadvantage when rivalled by established firms in the industry who can manipulate the pricing to their respective buyers as they provide mass production and their products are always in demand due to their brand and market awareness which they should have build upon over the years. 2.1 Branding Branding can be seen as a vital area under Porter’s Five Forces Model, barriers to entry.
2. Threat of Substitutes Two main competitors that produce like substitutes that have an effect with Apple is Microsoft’s computers and tablets, and Samsung’s Android. Many consumers are purchasing Microsoft tablets and Androids because they are cheaper than Apple products, however they may not work as well as an Apple. In order for Apple to stay competitive in the mp3 and tablet markets, they will need to keep their prices competitive which lowers their profit. 3.
One example of a business where IM will not work is a business that that sells electric wheelchair. Additionally, companies looking to sell products to a wide range of people and are looking to have large number of sales will not find IM as useful as outbound marketing (OM). While IM is good because it is cheaper to imploy and brings in higher value potential customers, it only captures a small market. OM should still be pursued if a company is seeking for large sales and large customer base. The most optimal marketing strategy may still be to apply both methods of marketing with the right
Virgin Mobile in the US (Situation Analysis) Customer Virgin Mobile has identified an opportunity window in serving customers aged from 14 to 24 (targeted by advertising). These customers have in common poor credit quality, which both means they are not eligible for traditional US carriers who require credit checks to sign up a contract and that they are going to be very sensitive to price. Also, this group provides low value and very unstable revenue for each subscriber. Finally, this kind of consumer is generally savvy and doesn’t like the idea of being fooled as a customer.However, this kind of customer is very prone to spending money on additional services such as text messages, graphics and ringtones. To them, their mobile phone is not just a tool to make phone calls; it is also a fashion accessory.
This merger has several different interest groups waiting for results. They include current consumers of both AT&T and T-Mobile, other cell phone providers such as Sprint, Verizon and Cricket, the Department of Justice and the Federal Communications Commission. A main concern of this merger is that of competition. If this deal goes through, it would leave just three major cell phone companies in the country: AT&T, Verizon and Sprint Nextel. This deal would ultimately make AT&T the largest cell phone service provider.
Rogers’s promotion strategy is to take the competition head on with price-driven competition with Treo and Palm. While RIM feels that it needs to be promoted by building up the brand and its unique features. Immediate Issue: RIM has presented the option of internally marketing the Blackberry Pearl. Secondary Issue: RIM needs to determine which features of the product would be most desirable to consumers for the Blackberry Pearl. Symptoms: RIM has held a strong market share in mobile devices in several variations in the business sector.
People say for people walking and on the phone is even dangerous, but let alone people on the phone and driving. Cell phone use may be the most obnoxious thing in a certain place. There is a time and place for your cell phone, and in a privately owned business, movie theatre, or retail store is not the place for them. Your phone call or text message can wait till you
• Virgin may have to abandon its preferred target market of teenagers, due to contract implementation and billing system. • There would be little Virgin could do to differentiate itself from the rest of cell phone providers. • Virgin is unknown brand, the customer will reluctant to pay the premium price even though virgin mobile deliver more value then competitor. 2. Price below the competitions Virgin could adopt the price below competition to attract the teenagers.
The statement “The marketer’s task is the same whether applied in Buffalo, New York or Harare, Zimbabwe, “is because the marketing concepts, processes, and principles are universally applicable. Therefore, the business’s goal is to make a profit by promoting, pricing, and distributing products for which there is a market. Question 2 Define the term ‘self-reference criterion’. Then state how it applies to the EuroDisney (Disney Paris) case. The SRC is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions.