Essay/Term paper: Marketing project

Essay, term paper, research paper:  Economics

Marketing Project

Bill Rossetti

Introduction

In the ever changing technological era of the soon to be 21st century,
electronic advancements have amazed us all. Unfortunately, the educational gap
for the common man/woman as a computer end user has left many far behind. There
are those who know and those who don't. This gap is the anchor of the computer
industry. One question comes to mind. "Why would I buy a computer, investing
thousands of dollars, when I don't know the first thing about them?" If it were
as easy as plugging it in and it guiding you through every nook and cranny
answering every question you had, then the computer would basically sell itself.
However, the shortcomings of this incredible technology intimidates the average
person. There has to be a liaison, an educator, a hand-holder, someone that is
there, patient and understanding, willing to teach and guide the most timid of
users. This is where my service comes in to play. A service that is there for
the computer novice, a strong, knowledgeable voice just a phone call away,
soothing the anxieties, relieving the pressures of ignorance.

Target Market

A geographic approach for my business would be the most feasible. I'm
concerned with anyone that now owns, plans to own, or is reluctant to own
because of their fear due to lack of knowledge. As a test area, I would keep my
business in the immediate vicinity. The Battle Creek/Kalamazoo area would be my
start up point. Although computer sales have increased considerably due to the
drastic drop in prices and at the same time the increase in speed and abilities,
I don't want to bite off more than I can chew. There will always be computer
users because, like the television, society has welcomed the computer chip
into everyday life. In other words, expansion will be there.

Product Strategy

My business is a service to the public. Mainly telephone contact to all
that contract with the service. For those extreme cases, home visits may be a
necessity. The main purpose is to guide the computer owner through any problems
they may encounter. At the present time, most computer companies offer
assistance at a fee of $35 per situation. That means every time you need help
it's $35. I ran into this when I first purchased my computer and I was quite
angry about it. I gave my business to this company, not to mention almost three
thousand dollars, and they have the gall to charge me more every time I had a
problem. If someone who has no idea how to use a computer needs help, this
could get quite costly.
My business would deal more on the novice level. From how to turn on
your computer to more advanced applications. I plan to gear my service toward
the person who has a simple problem, to the more learned computer user, and
will call on my service without hesitation. My goal would be to make the
customer feel comfortable no matter how insignificant the case. This is what
would separate my business from the others.

Pricing Strategy

I would be most likely accepted in the market in a penetration pricing
strategy. First, my overhead would be minimal so cost of my service would best
serve the public at a low start up price. Second, not many are willing to open
their pocket books too wide after they've already made a major purchase.
However, since my service could be considered a short term service with a high
turnover, a month to month contract or a choice of extensions to this contract
for additional fees would go like this: $25 for the first month up to 25 calls
$45 for two months up to 50 calls $70 for three months up to 75 calls $125 for
six months unlimited calls $200 for 1 year unlimited calls all emergency home
visits would be a $20 charge An important note: These would be the promotional
prices in the Introductory stage of my business. If and when my client list
expands, further changes and adaptations would take effect. At this stage I'm
more interested in building clientele.

When it comes to a service, the price/value relationship is less likely
to come into question. Therefore it will be my responsibility to convey to the
potential customer the purpose and obligations of my service. I feel that once
a person has an interest to call and question my service, the importance of
communication is utmost to the sale. Making up a procedure for calls received,
as to type, would be in place before initial advertising.

Placement/Distribution

The simplification of my service is that the channels of distribution is
quite narrow. The customer can pick up the phone and contact me at any time. I
would utilize a Selective strategy. The main area of exposure would be in the
major computer sales retail stores such as Best Buy , Staples, and other more
technical stores. Developing a relationship with management to these
establishments, conveying that their computer sales could increase considerably
if their customers knew that there was a service after purchase. Even possible
supplemental deals purchased in a package with the computer for my service would
also be a selling point to their product. This would provide prestige for this
store's selling pitch.
Working from my home would provide extreme low overhead on start-up.
Adding additional phone lines for convenience would be an expense. Later down
the line as my client list grows, adding more responsible, personable, and
computer literate employees to the payroll will be necessary.

Promotion Strategy

The initial kickoff of my business would employ a pull strategy. I
would try to get a working history and reputation before I approached the large
chain stores. This would include using a beeper. Since I wouldn't put all my
eggs in one basket, I would start by placing ads in the area newspaper and
literary documents such as the Shopper, and other free hand out type
circulations. As I said before, my main goal would be to establish a client
list so I would post fliers, hand out business cards, and use word of mouth to
my advantage. I would concentrate on keeping expenses down so my own
salesmanship and personal contact would be my biggest assets. Once I had a
reasonable client list and history of satisfied clients, I could approach the
major franchises with respectable proposals.
Selling my service to retail stores in conduction with their computer
sales would be a major goal of my business. If successful, I could then employ
the push strategy, as my service would be an attractive selling point to the
computer novice.

The initial ad I would place would go something like this:


Does this machine scare you?

Does your computer go unused because you don't know how to use it?

Have you put off buying a computer because you don't know the first
thing about it?

Would you feel better knowing that there is a business that
specializes in helping people like you?

SAV-YOR COMPUTER CONSULTANTS!

Our main objective is to guide you, the computer novice, on any and all problems
with your computer. From how to turn it on, how to understand your computer,
how to make your computer work for you, and even help you out with a computer
purchase. There is no problem too small! We understand that the computer can
be quite overwhelming at times and even the more experienced person can run into
problems. Our purpose is to be here for you to help whenever you need us!
We're only a phone call away!

For more details please call: 1-800- 555-1234

I wouldn't rely as much on the newspaper ads as I would on personal
contact and sales. Although the ad may sound 'cheesy', it is simple and to the
point. The importance would be in the initial phone contact. If the call was a
Q & A about the business, this would be a great opportunity for reeling in the
customer. If the call was an established client, only the most professional
and expedient handling of the problem would be acceptable. It will be crucial
to make the customer feel comfortable and leave the situation feeling satisfied.

Conclusion

With the explosive surge of computer products and technology saturating
our way of life, there must be a bridge to close the gap from the unknown to
the producer. The market for a service to educate and dissolve the barriers of
computer fears is vast and never-ending. This is a turning point in our lives.
The computer is here to stay and will eventually engulf our way of life in even
the most routine of chores. This is the service I will begin. Someday I'll
look back, just as Microsoft giant Bill Gates, and remember sitting at my desk
pumping life into a simple idea.