Excerpt coming from Marketing Strategy:
Prices Strategy and Distribution
Build-to-Order Netbook Marketing Plan
Costs and Funnel Distribution Strategies
The two most important aspects of virtually any marketing strategy will be the pricing and distribution tactics, as they both equally underscore the branding, unique value task and situation of products. Both have an immediate and multiplicative impact on the profitability and revenue regarding a product range and long lasting, to an complete business. The intent of those sections of the marketing program is to establish the prices and syndication channel approaches for the build-to-order netbook called Eleftria, which is the Greek word intended for freedom. In discussing the pricing strategy, the strategies, legal and ethical issues, and significance on brand value will be discussed. Additionally , the circulation channel examination of the build-to-order netbooks is additionally provided. Included in this analysis is known as a description showing how the circulation strategy fits the product and service, target market and overall marketing goals of the business. As costs strategies in many cases are heavily depended on as a method to gain increased distribution and cooperation of resellers (Al-Obaidi, Gabrielsson, 2002) this specific technique is also mentioned.
Pricing Techniques for the Eleftria Netbook
There is often a tough tendency to work with price as a means to drive value, where suppliers of high technical products generally rely on selling price as a means to get bigger volume (Berger, Grigoriev, truck Loon, 2011). This generally turns out to be an incorrect assumption and a failed approach as nearly all high tech market segments are inelastic, with level demand figure, which makes differentiation and unique value a lot more critical than price (Gill, Lei, 2009). Given the highly exceptional nature from the Eleftria Mini netbook, relying more on a skimming strategy strongly recommended, as this will likely preserve low margins and lead to the profitability within the long-term. Keeping the price bigger will also indicate greater benefit, as buyers often depend on a price/quality framework within their purchasing decision process (Boyle, Lathrop, 2009). This price-quality framework is employed for arbitrating whether a product or service is reliable, delivers value and can be reliable or certainly not. The price-quality relationship can often be used by superior products and services providers to verify raising prices as well, a strategy many rely on because their markets be crowded with competitors (Boyle, Lathrop, 2009).
As the Eleftria program can be bought from a multitude of configurations, the pricing strategy commences with a primary unit and increases depending on the options picked. The costs strategy concentrates on creating a excessive gross margin in the preliminary unit, then up-sell and cross-sell strategies on the accessories to further boost profitability per unit. The internet effect of this strategy is to produced a blended gross margin of previously mentioned 70% per unit, which in the current electric industry is considered above average (Gill, Lei, 2009). The skimming pricing strategy, coupled with the exclusivity of experiencing a made-to-order netbook to one’s exclusive and particular tastes, that will drive the upsell and cross-sell approach, is the objective. The equipment and many alternatives will also in order to differentiate every model, making them unique pertaining to the needs of every presented customers, further underscoring the price/quality romance (Boyle, Lathrop, 2009). By utilizing these charges strategies the goal is always to create a remarkably differentiated and unique knowledge for each customer as well, that can serve to even more support the premium cost or skimming strategy (Al-Obaidi, Gabrielsson, 2002). The prices tactics are made to capture all the margin as is feasible for the first platform in the Eleftria mini netbook while as well creating possibilities for upsell and cross-sell of exclusive configurations at the same time. All of these pieces of the product will be used to ensure a high premium selling price, which will be accustomed to further underscore the unique experience of having an Eleftria netbook computer (Gill, Lei, 2009).
The Eleftria Netbook computer distribution strategy, which is discussed in the next section, is also seriously dependent on the pricing strategy of the basic unit, add-ons, and personalization components. Prices will be
