Marketing Recommendations & Reasons

Essay by minsUniversity, Master'sB+, December 2009

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Target MarketTarget engineering department heads in North American companies in industries with (1) greatest share of potential newbusiness and (2) high usage of adhesives in terms of pounds per average company. This includes SIC codes 33-35, 36, 37,and 39.

• N. American focus makes issues of assembly, sales, and distribution manageable when product is new.

• Targeting industries that are predicted to account for the largest share of new business in this growing market willfacilitate market share growth.

• Industries for which the average adhesive usage per company is high will be more efficient for sales (both direct salesreps and distributors) to focus effort on.

ProductRename product EZ Dispenser, offer both new models being considered, and include a needle and tip with both models.

Offer 24-hour technical service via a toll-free phone number and email.

• A large majority (72%) of purchasers of adhesives stated that technical service was important.

PricePrice at $175 per unit, including needle and tip. Offer a one-year limited warranty and a free 30-day trial offer. Offerdistributors an 8% allowance and an additional 4% volume discount for distributors for purchases of 100 or more units. Offerdirect customers a 4% volume discount for any purchase of 10 or more units.

• $175 is high enough to maintain EZ Adhesive's reputation as a premium company, and low enough to motivate multiplepurchases.

• The warranty will facilitate consumer confidence and minimize risks of purchase.

• The free 30-day trial offer will motivate trial. Once someone tries the product and experiences how extremely well itworks, that person will continue to use it and purchase additional units and more adhesive.

• The 4% volume discount to direct purchasers will encourage multiple purchases for work stations on an assembly line.

• The 8% allowance will increase distributor's willingness to stock EZ Dispenser.

DistributionDistribute though direct sales force and EZ Dispenser distributors. Increase sales reps commission to 30%. Motivatedistributors with 8% allowance and 4% volume discounts (see price section) and training programs. Hold an annualdistributor meeting and publish a specialized newsletter for distributors.

• The majority (62%) of users purchased their instant adhesives through distributors. By using their own distributors, EZGrip has more control and can provide superior service.

• A higher commission (30%, in contrast to 25%) will increase sales reps' motivation to promote and sell the product.

• An annual distributor meeting and specialized newsletter will increase their product knowledge and will illustrate all thebenefits of the product so that they can be more successful in their sales.

CommunicationsImplement print advertising in every monthly issue of Assembly Engineering, Design News, Production Engineering,Appliance Manufacturer, and Modern Machine Shop magazines. Include EZ Dispenser with offer for free samples inpackaging of EZ Grip. Send direct mail (brochures and cover letters offering a free sample) to introduce EZ Dispenser to allengineering department heads in all companies in the target market. In all communications, emphasize the followingadvantages: a faster, more accurate job, less mess and waste, lower work costs, increased product reliability, and quickerparts assembly.

• Advertising in leading trade journals will increase awareness of the new product among engineers looking to stay on topof their trade.

• The market already exists for EZ Grip and by providing EZ Dispenser brochures in the EZ Grip packaging, they canefficiently reach this existing market of adhesive users.

• Direct mail will help increase awareness of EZ Dispenser, and the free sample will facilitate trial.

BibliographyKotler, P. MARKETING MANAGEMENT, 13th edition, 2009,