Journal for Marketing 100 part 2

MKT100

Marketing Plan

Company Overview

Owner(s):	Ms. Joan Givian, Mrs. Leonora Smith, and Mrs. Melanie Teodoro
Company Name:	Aero Communication Center
Product Name:	Cell phones and Accessories
Location:	San Antonio Texas
History (yrs.):	1

Section 1: Executive Summary

Aero Communication (AEROCOM) is a small corporation in San Antonio Texas. It is run and managed by 3 siblings in the family. It all started when everyone in the family fell in love with buying and changing phones for themselves. Later they all decided to have their own phone store company that not only sold brand new phones, but of course sold used phones and repaired cell phones to get more customers coming in their store. Ms. Joan Givian has experience in sales, marketing and management. Mrs. Leonora Smith has extensive experience in the area of finance and accounting. Mrs. Melanie Teodoro brings experience in the area of administration and staffing. AEROCOM intends to hire a total of 12 people that can come to work in two shifts (morning and evening). Morning and evening shifts will have 2 people in charge of the cash register, 2 people for customer service, and 2 people for phone technician.

Product description

AEROCOM offers a variety of cell phones, chargers, phone casings, and accessories from Germany’s top quality material. The AERCOM team provides the best customer. AEROCOM offers 90 days warranty for the brand new phones replacement if the phone found is factory defect, 60 days guarantee for the used phones and phone repair, and 30 days warranty for the phones chargers, phone casing and accessories.

Section 2: targeting customers

Now a day people needed cell phones for their love ones. I bought the phone for my 9 and ten year old girls an IPhone 4S because I want them to text or call me when they just got out of school and started walking home to make sure that they are in a good situation. {Sentence clarity required.}It comes to mind when people hear the term marketing. Most of the people think of the radio ad, television ad, hand flyers, billboard they saw while driving to school. {Sentence clarity required.} But advertising is only a small part of marketing; the whole story is much bigger. The American Marketing Association defines marketing as an activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. In business, you get what you want by giving other people what they want. Utility is the ability of goods and services to satisfy these wants (Marketing: Building Profitable Customer).

Demographic profile

As new businessmen, I think that a better place to put my business is at convenient place where people can walk or drive to get to the store. For example, it would be at the corner of the mall somewhere which people can find my place easily and do not have a problem finding a parking space. My target is to find professionals, working students, parents, employer, employee that can afford to buy my products that are working within the surrounding area. For me to introduce my new business in the area, I think it would be better to have an unforgettable grand opening. In order to do that, I will need to advertise my business through radio ad, newspaper, handing out flyers, etc. Through this, people will know and remember to attend their grand opening; especially when the business is advertising what deals people can get during the limited time grand opening.

Psychographic profile

People from different places may not be introduced to the new version of technology like my parent in laws. Since they stayed with us for one whole month vacation, I introduced them how the new technologies that may good affect in their lives. I thought them how to download books, songs, watching movies on Netflix and Hulu plus, etc. using my phone. Now that they know how awesome the phone that I am selling and the new technology works, they bought their phone because they thought it would be a big help for them to have everything that they need in a phone.

PROFESSION

My products are very affordable and people {user} friendly. It does not need to have a higher education to figure out the settings of my phone, or to replace the phone cases once in a while. {Neither higher education nor technical experience is required to operate the product and/or its accessories.} {Due to various price points for used and new phones, any income level can afford the product} Since I sold used, and brand new phones people with low income or high income can afford my products. Free tutoring on how to use my phones like calling someone, texting someone, takinge pictures, changing phone housing, etc. are free anytime.

geographic LOCATION

New businessmen are very focused on the location of their of the location of the business. As a new owner of the business, I would like to put my business at the corner of the mall somewhere in San Antonio Texas which people can find my place easily and do not have a problem finding a parking space.

Wants and needs

Too many cellphone companies offered unlimited call and text, but the pricing are not very friendly. {what does friendly mean? Do you mean less expensive/cheaper?}People now a day are very into advance technology. For me, I like the phone that can do everything I need. This includes calling someone, texting someone, taking pictures, checking emails, video calling, etc. are the new technology that a customer wants and need. Customers like to check email sometimes when sitting at a restaurant, and checking a bank account especially when they are at the grocery store to make sure they have enough funds to buy the stuff that they need. From The phone that I am selling which is{will have} unlimited call, unlimited text, and unlimited data plan for internet surfing. And the pricing will be competitive. and affordable are very in demand now a day.

Chapter 11 : Marketing: Building Profitable Customer ... (n.d.). Retrieved from http://swynnbrown.webs.com/Chapter%2011.pdf

What Is Geographic Segmentation in Marketing? - Definition, Advantages & Examples | Education Portal. (n.d.). Retrieved from http://education-portal.com/academy/lesson/what-is-geographic-segmentation-in-marketing-definition-advantages-examples.html#lesson

Section 3: Unique Selling Proposition

Consider what distinguishes your company from competitors, their products and / or the price of their products and services.

unique selling proposition (usp)

The unique selling proposition (USP), or unique selling point, or "'unique selling product"' or "' unique selling price"' is a marketing concept first proposed as a theory to explain the pattern in successful advertising campaigns of the early 1940s (Unique selling proposition). ‘USP' means unique selling proposition. It is one of the basics of effective marketing and business that has stood the test of time (10 Minute Guide Unique Selling Proposition).

A USP can help customers by saving them time when they are considering buying a product or service (Google. (n.d.). A unique selling proposition, which defines your company’s unique position in the marketplace, is an often overlooked, but crucial element of creating a business that customers love. A strong unique selling proposition lets you stand apart from competitors and actively focus your energy on creating things that cater to your ideal group of customers (5 Ways to Develop a Unique Selling Proposition | Convince and ... (n.d.)

fetch prices lower than their original prices. It means that customers will opt to purchase from the store rather than other stores that do not deal in sell of used phones. The unique aspect is that unlike our competitors (AT&T, Verizon, T-mobile, Sprint, or any other Cellphone Company), customers do not have to pay the full amount of the product in cash. They can exchange their current phones then add the difference to purchase the phones that they desire ((Telecom Wireless Business Plan Sample - Marketing Strategy | Bplans. (n.d.). Through this payment plan, the customers will spend very little when they want to acquire upgraded phones. We also bought and owned our products to make sure that we are very proud of using the products that we are selling and advertising to customers (Unique Selling Proposition (USP) Definition | Small Business Encyclopedia | Entrepreneur.com. (n.d.). Another aspect is that the business is run by family members. It means that the working environment is cohesive because the staff knows each other (suggestion) of the staff of the company is favorable as they do not work with strangers (Telecom Wireless Business Plan Sample - Marketing Strategy | Bplans. (n.d.). Addressing a particular staff complaint is easy as very few people need to be concerned. The size of the business is also small therefore we do not experience the disadvantages of economies of scale.The unique selling proposition of the company is offering customers high-end cell phones but at low prices (Telecom Wireless Business Plan Sample - Marketing Strategy | Bplans. (n.d.). The used phones will

marketing objectives

Marketing is crucial as it helps create public awareness about the company and its products. One of the marketing objectives will be increasing sales. Increasing sales and driving the business will enable the company to have a favorable return on the investments (Marketing objectives | Business Building Blocks. (n.d.). The company should be able to generate 200% of the initial investment. Marketing should also achieve 80% product awareness among the customers that we have targeted. The marketing strategy will consider the appropriateness of market segmentation as it shall divide the target market into clusters and then address their needs independently. The company should attain at a minimum constant annual growth of about 20% in every year of operation. Since the customer profile suggest that the potential customers represent more than 50% of the total population, the marketing process will be aimed at occupying 25% of the total market share (Marketing objectives | Business Building Blocks. (n.d.).

Unique Selling Proposition (USP) Definition | Small Business Encyclopedia | Entrepreneur.com. (n.d.). Retrieved from http://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp

Marketing objectives | Business Building Blocks. (n.d.). Retrieved from http://businessbuilding.com.au/certification/unit/88

Telecom Wireless Business Plan Sample - Marketing Strategy | Bplans. (n.d.). Retrieved from http://www.bplans.com/telecom_wireless_business_plan/marketing_strategy_fc.php

Section 4: Pricing and Distribution Strategy

You will now consider your company’s strengths and weakness, along with your product or service price.

strengths, weaknesses, opportunties and threats (SWOT)

The SWOT analysis will be a useful tool in developing and confirming your goals and your marketing strategy. Some experts suggest that you first consider outlining the external opportunities and threats before the strengths and weaknesses (Google. (n.d.). The SWOT analysis is a valuable step in your situational analysis. Assessing your firm’s strengths, weaknesses, market opportunities, and threats through a SWOT analysis is a very simple process that can offer powerful insight into the potential and critical issues affecting a venture (Learn How To Do a SWOT Analysis For Your Marketing Plans | Mplans - Mplans. (n.d.).

The strengths of the company are an efficient management team that has a broad experience in business and product know-how, it has a focused and aggressive marketing campaign which has clear strategies and goals, and it has also maintained and established a strong capital base (Learn How To Do a SWOT Analysis For Your Marketing Plans | Mplans - Mplans. (n.d.). The weaknesses include the company is new so it, therefore, has no reputation that its competitors have and then since there are very many new employees they have to be trained, and the company must learn new-organizational structures. {Sentence clarity required.} The opportunities include government programs that encourage development of new businesses in the country and there exists a growing population that increases the number of potential customers (Learn How To Do a SWOT Analysis For Your Marketing Plans | Mplans - Mplans. (n.d.). The primary threat is competition. There are competitors in the market who sell identical products and already have loyal customers who regularly buy from them.

supply-chain and operational system

The operation of the supply chain shall involve performance of regular cost-to-serve and market studies. The performed studies will provide information required when tailoring supply chain policies and service agreements so as to raise the portfolio’s overall profitability and at the same time provide suitable and reliable service (The application of discrete event simulation and system dynamics in the logistics and supply chain context. (n.d.). Differentiated policies on demand in the core functions will be implemented as well. These policies will be the benchmark for the prioritization of the transportation, distribution and master planning of the supply chain (The application of discrete event simulation and system dynamics in the logistics and supply chain context. (n.d.). The inventory systems will also be differentiated since customers have needs that are differentiated and replenished. The company won’t venture into production but will major on distribution. The distribution of the phones to the stores will involve an online channel. Customers will log in and request that an agent goes and picks the devices from them {Sentence clarity required.} (The application of discrete event simulation and system dynamics in the logistics and supply chain context. (n.d.). They {who is “they”} will also be required to leave their current locations.{?} The agent will then be sent to go pick the methods and offer payment. {?} Those who want to visit the company store are also allowed to do so. The customers who will need to make purchases can order online and then delivery services will be used to distribute the product to their locations (Moss Motoring 1984 – Moss MotoringMoss Motoring. (n.d.). Customers who want to place orders at the store can also do so (Moss Motoring 1984 – Moss MotoringMoss Motoring. (n.d.). The company will utilize online presence to market and sell its products so there will be no need for employing an outside vendor. Everything will be done in-house. We shall however use delivery agencies to reduce the distribution costs.

pricing strategy

The pricing strategy of the company will be to set prices that are lower than that of the competitors. The market is very competitive as the sellers are selling identical but differentiated products (Setting Profitable Prices: A Step-by-Step Guide to Pricing Strategy--Without ... - Marlene Jensen - Google Books. (n.d.). Setting lower prices will ensure that consumers are more attracted to my store. The pricing objective will be to ensure that the prices make the company more competitive by giving it a competitive advantage over its competition (Setting Profitable Prices: A Step-by-Step Guide to Pricing Strategy--Without ... - Marlene Jensen - Google Books. (n.d.). Internally, cost of running the business greatly affects the pricing of the company’s products. High wages or taxes will mean that I will have to set higher prices for the products to cushion the company from losses. Lower cost of doing business results in lower prices as the profit margin will be positively affected (Setting Profitable Prices: A Step-by-Step Guide to Pricing Strategy--Without ... - Marlene Jensen - Google Books. (n.d.). Prices of the competitors’ products are an external factor that affects the pricing of our products. If the competitors offer low prices then, our prices must be adjusted so that we offer reasonable competition in the market.

Learn How To Do a SWOT Analysis For Your Marketing Plans | Mplans - Mplans. (n.d.). Retrieved from http://www.mplans.com/articles/how-to-perform-a-swot-analysis/

Setting Profitable Prices: A Step-by-Step Guide to Pricing Strategy--Without ... - Marlene Jensen - Google Books. (n.d.). Retrieved from http://books.google.co.ke/books?hl=en&lr=&id=vbBPBL4AdKkC&oi=fnd&pg=PR5&dq=pricing+strategy&ots=9TPCUzTDNc&sig=g6krxpb4WJzJjME1WurFNnc0mH8&redir_esc=y#v=onepage&q=pricing%20strategy&f=falsee

The application of discrete event simulation and system dynamics in the logistics and supply chain context. (n.d.). Retrieved from http://www.sciencedirect.com/science/article/pii/S0167923611002211

Section 5: Distribution Plan and Promotions Strategy

distribution strategy

The company’s distribution strategy will focus on the majority of the target market, and the distribution channels will aim at covering all the possible locations to widen the market thus increasing the sales (Distribution Channels and Marketing Analysis | Chron.com. (n.d.). The target market will be the young as they are more technology enthusiasts than the rest of the population. Students are the best strategy for tapping this market is to have tie-ups with the colleges and the schools. {Sentence clarity required.} Here the product will be customized on the basis of the needs of the universities {universities or students?}. The best type of distribution strategy is to have awareness {awareness or relationship/agreement with the colleges to sell/advertise the product.} among the colleges about online stores or having a designated single point of contact. The distribution channel will be selected based on the cost since the company wants to offer products at low prices by reducing the operational costs (Distribution Channels and Marketing Analysis | Chron.com. (n.d.). The main strategy that the company will leverage shall be selling of products online. The strategy is very cost effective, and this is in line with the objective of the company. Selling online also increases the scope of the target market as the company won’t be limited to a particular geographical location (Distribution Channels and Marketing Analysis | Chron.com. (n.d.). Locating stores in different regions will increase the cost of running a business, and these costs will increase the price of products.

1. Offering free accessories with the cell phone purchased (Sales Report Sample | Templates Sample. (n.d.). This will help the company to have a satisfied customer base and thus increasing the sales and revenues. 2. Offering student discounts and corporate discounts - by offering such discounts the company can overcome the perception of the people of product being costly. Also offering discounts will help the company to increase its customer base. 3. Use of online channels to increase product awareness. Advertising through appropriate channels and increasing the ease of doing business between the customers and the suppliers

marketing goals

The main marketing goal is increasing the sales of the company products. In order to have a market reach and penetration, the company needs to follow a horizontal and vertical integration (Horizontal integration/ Vertical integration | Strategic Management Insight. (n.d.). The promotion activities will include, offering free goodies with the product. This will include offering accessories either free of cost or on discounted value (The Differences Between Marketing Goals & Objectives | Chron.com. (n.d.). The company can offer accessories like cell phone housing, key chain, phone screen protector, etc. to the end customers, this will enable making customers happy and informed about the product. The company can offer free seminars on the latest technology and free demos of the product (The Differences Between Marketing Goals & Objectives | Chron.com. (n.d.). The same can be done by sending free mailers to the customer to explain new developments and launch of new products. Increase in sales will help the company thrive and expand.

Another marketing goal of the company will be raising public awareness about existence of the company by spreading the word that the company sells cell phones at very cheap prices (The Differences Between Marketing Goals & Objectives | Chron.com. (n.d.). We will also strive to create customer loyalty to the store. With customer loyalty come good public image of the company (Total Quality Management (TQM) - Quality Skills from MindTools.com. (n.d.).

The company will use various marketing materials. Print media will be used whereby the company will advertise in the newspapers, journals and newsletters (Distribution Channels and Marketing Analysis | Chron.com. (n.d.). The internet will also be used as a marketing material as posters with information about the company will be placed in websites with high traffic flow. Billboards with posters that talk about the company shall be used along roads with high traffic flow to spread the word (Distribution Channels and Marketing Analysis | Chron.com. (n.d.).

1. Making contracts with the suppliers of the products (raw material) to provide raw material in a timely fashion, in order to avoid any delay in the final product (Important Graduation Dates and Forms - Community High School ... (n.d.). This will include following techniques like, Just in Time (JIT) and Total Quality Management (T QM) to have high quality and low delays (Total Quality Management (TQM)/ Just In Time (JIT) - Quality Skills from MindTools.com. (n.d.). The same can be done through mergers and acquisitions with the suppliers and vendors.

2. Good bonding time with the customers. This will include having contracts of selling customized products to the end customers.

3. Taking feedback from the end customers and making end vendors and distributors satisfied and well informed about any new developments.

Distribution Channels and Marketing Analysis | Chron.com. (n.d.). Retrieved from http://smallbusiness.chron.com/distribution-channels-marketing-analysis-60985.htm

Horizontal integration | Strategic Management Insight. (n.d.). Retrieved from http://www.strategicmanagementinsight.com/topics/horizontal-integration.html

Vertical integration | Strategic Management Insight. (n.d.). Retrieved from http://www.strategicmanagementinsight.com/topics/vertical-integration.html

Total Quality Management (TQM) - Quality Skills from MindTools.com. (n.d.). Retrieved from http://www.mindtools.com/pages/article/newSTR_81.htm

Just In Time (JIT) - Strategy Skills Training from MindTools.com. (n.d.). Retrieved from http://www.mindtools.com/pages/article/newSTR_78.htm

action steps (conclusion)

Propose at least three (3) action steps that you can use to move your plan forward. Consider how, when, and who will be involved in the execution of this plan. Formally wrap up your marketing plan.

A conclusion is not traditionally included in a marketing plan, but a list of action steps are often included within the plan. The conclusion provides you with an opportunity to reflect on your plan and support academic level writing.

Reference list (APA format)

7/26/2014

Marketing Plan

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