BUS105: Demonstration of a Comprehensive Knowledge of Marketing Mix Theory - Product, Price, Promotion and Placement - Marketing Assessment Answers

Demonstration of a comprehensive knowledge of marketing mix theory (Product, Price, Promotion and Placement) and concepts and ability to apply that knowledge through a comprehensive and critical and insightful evaluation of the relevant aspects of the product’s marketing.

Background

1. -What is the product, who manufactures/delivers the product, and where can it be bought?
2. –What does an internal and external analysis of the company’s marketing environment reveal?
3. Who appears to be the main target markets for this product?

Executive summary

The Dyson cinetic big ball was launched this year by Dyson enterprise. This report exploits the marketing strategy used in this product. The marketing mix of the 4P’s (product, price, promotion and placement) has been used in the analysis. The product has been discussed in three layers; core product, actual product and the augmented product. The pricing objectives have been exploited in comparison to another competitor. The net worth of the product versus the price have also been made. The integrated marketing communication mix theory is implemented in evaluating the promotional strategy used by the company marketing strategy. Both direct and indirect methods of marketing channels have been used to explain the placement of the product. Types of distribution strategy and intensity have also helped in explaining the placement. A recommendation has finally been made on price reduction and improvement in corporate social responsibility of the company as a future marketing strategy and appreciation of other stakeholders.

1.0 Introduction

Dyson cynetic big ball is a vacuum cleaner launched by Dyson company recently. The product has received mixed reactions in the market, but most of all the acceptability has been very high. The new Dyson vacuum cleaner aims at eliminating most of the disadvantages that come with vacuum cleaners. This has made the Dyson vacuum cleaners to evolve through four major advancements in vacuum cleaning technology (Dyson 2016, p1). The Dyson small ball was the beginning of the advancements in vacuum technology. This then was improved to the Dyson ball, and then came the Dyson ball animal which was good and excellent compared to other vacuum cleaners in the industry. As if that was not enough a new epitome was developed, the new Dyson cinetic big ball.

This vacuum cleaning machine does not have filters which would require cleaning after the operation. It also has a stronger suction power compared to the previous Dyson ball vacuum cleaners (Dyson 2016, p1). The Dyson cinetic big ball has a characteristic big ball at the bottom which is different from other vacuum cleaners. This document seeks to identify the product in terms of the four marketing theories. These are; pricing, product, promotion and placing. The theories are expected to evaluate the success of the current marketing strategy used by Dyson on the new vacuum cleaning machine.

2.0 Background information

Dyson Limited is a British technology private company involved with the manufacture of vacuum cleaners, office desk Bladeless fans and hand dryers. The company was founded by James Dyson in 1991 who is the chief engineer of the company. The headquarters of the company is in Malmesbury, Wiltshire England. In the last 24 years, the company has grown significantly to be able to record its sales in over 70 countries with an employee number of around 4,000. This growth is attributed to the Dyson’s need to solve problems in the technology industry.

Vacuum cleaners are designed to clean surfaces, especially floors and carpets and can also be used on surfaces such as seats. However, these vacuum cleaners have disadvantages. The fact that the filter could get clogged due to dust accumulation and the need of emptying in a bin outside was a huge challenge. These disadvantages pushed Dyson to develop a vacuum cleaner which would self-clean hence eliminating the need of filter cleaned after the operation. The Dyson cinetic big ball is the result of the invention launched this year by Dyson.

Almost the whole England population uses vacuum cleaners in their homes and offices. The product may seem to target the whole population, but based on the level of sophistication and the price, the product is in the high end market. The type of magazines which advertise the product and the type of store it can be found in classifies the product as high end market. The technology is so sophisticated and the research put into it to come up with, it seems to be very extensive and expensive.

3.0 Product

The marketing of the new Dyson version of vacuum cleaning will be evaluated based on the market mix theory developed by Robert Nielson (Goi 2015, p67). The marketing strategy on the most unique qualities of the product is evaluated based on the product, the price, the promotion and the placement of the product.

3.1 Three layers of the product

The Dyson Cinetic big ball as a product has three components. These are the core part, the actual product and the augmented product (Khatiri et al. 2013, 1643). The core product is not always tangible since they are the benefits of the product. Based on the cynetic big ball animal vacuum cleaner the benefits of it that would encompass it as a core product are in its efficiency.

The Dyson cinetic big ball claims to have the highest suction pressure and does not require filter cleaning. The vacuum is upright meaning that the user does not have to bend in accessing hidden places during cleaning and the cleaning is not affected. When the vacuum is not upright, the cleaner would not work effectively since when bent to access hidden places, the vacuum will require re-positioning to an upright position. This means that these places would not be effectively cleaned; unlike in the Dyson new vacuum cleaner. Cleaning of the filters is eliminated by the presence of cenetic tips with the ability to oscillate for up to 5000Hz. This movement is continuous and it prevents microscopic dust from blocking the air flow through building up. The tips allow dust separation so efficiently that pre-motor filter is not necessary and hence suction is not lost by the Dyson Cenetic big ball animal.

Other benefits include a self-adjusting cleaner head with the ability to adjust between carpets and hard floors without carpets. Another benefit is its ease in steering of the vacuum cleaner by the twist of the arm when cleaning difficult places. The Dyson cinetic big ball has a wand and hoose. These help in cleaning high places and hidden gaps.

The actual product defines the tangible part of the product (Khatiri et al. 2013, 1645). These components are; the product colour, weight and design. The product is basically grey with a few red colours at the base. The vacuum cleaner has a transparent portion next to the bottom, which makes it look unique and sophisticated. The product is easy to use and comes with different parts. There is the animal cleaner segment, the wand and hose for cleaning high places, but attached to the main vacuum cleaner with a spring. Other extra tools may be added based on the choice of the customer.

The augmented product in the Dyson Cinetic big ball animal vacuum cleaner is the non-tangible part which comes with the sale (Khatiri et al. 2013, 1643). These include the 5year warranty which is provided by the company on purchase. The other augmented part of the product is the free shipping that is provided and transportation when one orders the product. The product is also engineered and claims to have a ten year life span. These are the simple after sale services that make the product lucrative and attractive to customers. These help in advertising the product.

The product marketing matrix mix tends to answer four main questions based on consumer needs. The solution, information, value and access are evaluated based on the three layers of the product and the marketing mix (Goi 2016, p69). The product has achieved a solution to the problem of filter cleaning experienced. The information about the product is good enough to attract customers and win their confidence. The value of the product is proportional to its characteristics. The components of the product tend to increase the price and as well improve its efficiency and performance. Accessibility of the product is motivated by the after sale services and the warranty provided.

4.0 Price

The price of the Dyson cinetic big ball is different when additional components are to be purchased. However, additional coats of purchasing bags for emptying and lack of filters reduces the operational cost of the product. The Dyson ball ranges of products have different prices ranging from $ 699.99 to $ 399.99 (Dyson 2016, p1). The Dyson cinetic big ball animal plus allergy costs the most of all brands at 699.99 dollars. The marketing matrix with the customer at the center evaluates the price based on its performance.

The current price of the Dyson cinetic big ball ($699.99) is highest compared to other companies whose prices fall at $649.99 (Miele Dynamic cat and dog) or lower. Shark Vacuum and iRobot are closely behind the prices of the Dyson but still Dyson is in the lead of pricing. Being a new product launched in the market, the marketing objective is not necessarily to attract customers or make short term profit. The pricing objective is likely to get a target return on sales (Kaplan & Atkinson 2015, p 6). The high price can also be explained by the company’s need to obtain a target rate of return on investment. This will ensure that profits are getting in the long run. Increasing the market share does not seem to be a factor affecting the pricing system since the market share of Dyson enterprise is large enough due to its reputation with previous products.

The price of the product is fixed and high meaning that the presence of other firms in the market does not affect the price of Dyson cinetic big ball. Given that other vacuum cleaners have low prices and Dyson cinetic big ball is a new product in the niche, the price could have been lower to attract demand, but this is not the case. The demand in Dyson cinetic big ball does not affect the price of the product hence we say that price elasticity of demand for the product is perfectly inelastic (Sabatelli 2016, p4).

The solution that the customer gets out of the product which is lack of filters, among others, can be mentioned to be captured within the price. The information derived from the price is in its efficiency. The customer would feel that for a better service an extra amount of money would need to be paid, which is logical. The product is very valuable and in terms of its price tag, I would say that it is worth it. Accessibility to the price, however may be a little complicated. Being that the product is affordable based on its performance; the advertisements are made in high end niche advertising agencies. For example one would be required to buy the inside out magazine (appendix 2) to be able to get information on the price. Other sources like the internet Dyson’s enterprise website, has the information which would require a few cents to be able to access the price. As a marketing strategy, accessibility to the price is not effected.

5.0 Promotion

5.1 Integrated marketing communication

The promotion of the product is very strategic. An integrated marketing communication (IMC) seems to be used in promoting the product (Thorson & Moore 2013, p34). An integrated marketing communication ideally involves; sales promotion, advertising, personal selling, direct marketing response and public relations. In this case adverts have been made through different types of media. These include print media and online (internet) advertising. Part of the print media have been attached to the document in the appendices section. Sales promotion has been used in the communication of free shipping services. The five year warranty on the product is also an important aspect of the sales promotion. Personal selling, however has not been observed with this product as part of the MIC (Thorson & Moore 2013, p34). Direct response marketing is observed with the customer reviews recorded as part of the new product website. In this way a new prospective buyer would evaluate the performance of the product from the experiences of the previous customers. This is a communication strategy which facilitates the name of the product, whether in good light or not, the communication is made. In the presence of critical reviews, the product is discussed by different users enticing a new customer to get into the conversation but only after buying the product.

The print advertisement is uniquely placed. In the inside out magazine the Dyson cinetic big ball is branded as a keeper. Creativity is used in comparing the Dyson vacuum cleaner to a dog. On the same page, a dog is placed in front of a well-organized visually neat dining room. The dog symbolizes the safety in the room from unwanted guests. Dyson vacuum cleaner in comparison to the dog is expected to have kept the dining room clean using its latest technology.

The message communication to the audience can be said to have followed the hierarchy of effects model in marketing. General awareness of the new product is presented in the introductory part of the product as a keeper. This gives the customer more interest in knowing more about the product. The advert then moves to the knowledge giving part (Buil et al 2013, p 116). The next page of the advert (appendix 2) shows the efficiency of the vacuum cleaner and its main components. The customer now is believed to like the product after the knowledge is obtained (Rudman et al. 2012 p170). He or she will therefore see the preference of the new product to others a conviction is based on it and hopefully an order is placed and purchase is made.

6.0 Placement

6.1 Marketing strategies

The placement of the product is in a way that the targeted market can get access the information on the product and the product itself. Both direct and indirect marketing strategies are being used by the company. The most prominent strategy is the direct marketing. On the magazine ad's reference is made to the company’s website for more enquiries and order for purchases. The direct placement strategy is advantageous in that the company has direct communication with its customers. However, during the initial stages, it is expensive to set up (Shallagalla et al 2014, p 19). This is because the company needs to set up stores, delivery vehicles and personnel managing the supply chain. In the long run, the overhead costs are cut down and it becomes a cheaper method of product placement.

The indirect strategy is used by placing the product in other sales websites like amazon. This third party helps in promoting the product due to the large market share reached with these companies. The cost associated with placing the product at amazon and other websites is cheaper than the direct marketing initially, but in the long run it becomes expensive for the company will continue to pay Amazon for any sales made through their website. However, third party sales is advantageous for a wider audience is reached compared to the direct sales strategy. It is advantageous for Dyson especially for the new vacuum cleaner.

6.2 Distribution intensity

Intensity distribution of the product is dependent on the amount of service required by the customer after sales. It is the availability of the product in the market as defined by the marketer (Abeid 2014, 113). For the Dyson cinetic big ball animal plus allergy, the type of distribution intensity is determined by the price, the product and the promotion strategy. The intensity level is not used by this product since it is not found in all outlets available and the high price does not warrant its presence in all outlets. The most appropriate distribution to describe the placement is the selective distribution. The company has carefully selected the places where information and product can be found. Being that the product targets the high end niche, like luxurious hotels, offices and a few homes that can afford the product. Exclusive distribution has not been used for direct and indirect marketing strategy is being used in placing the product.

Types of retail stores used in selling the Dyson cinetic big ball can be categorised in to two main outlets (Wang et al. 2014, p55). First, there is the department store where most electrical appliances and merchandise are found. In this case the products are well displayed and arranged (Li et al. 2013, 4526). These are always found in most towns, but are few within a specific town. This retail type is convenient to the customer, in that the product can be found at such store any time and orders can be made through the store. Use of the warehouse as a retail outlet is used by the manufacturer in direct sales. The manufacturer in most cases has control over the contents in the warehouse and displays are not necessary. Most sales distributed from the warehouse retail store are the orders made directly through websites and where shipping is required.

7.0 Conclusion

The Dyson cinetic big ball animal plus allergy is vacuum cleaning equipment manufactured by Dyson enterprise a private company owned by the lead engineer Dyson in Britain. The product can be bought from selected retail stores and by direct order from the manufacturer. The company has other competitors for the same product in the market. The level of sophistication of the product and improvements puts it above other vacuum cleaners. The product does not have a filter hence cleaning of filters is eliminated. The flexibility in cleaning hidden places and the ease of emptying the dust is a great achievement. The main target seems to be the high end niche based on the price, promotion, product and the placement. The price of the product places the product to a different market target, especially those who can afford it. The main of retail type is the departmental stores. The product information is found in high end magazines and at the company’s website. The warranty of five years and the lifespan of ten years make the product to be of high sophistication at the price. Therefore the price becomes reasonable based on its performance.

8.0 Innovative Recommendation

After this analysis, it is appropriate to recommend a slight reduction in price. Being a new price, a low price would be a strategy to penetrate the filtrated vacuum cleaning market and beat other competitors. The price would then increase later, after the break-even point has been reached by the company. Ensuring that a high initial number of customers purchase the product will be like a marketing strategy, being that the product is sophisticated, the news would spread faster.

A corporate social responsibility of the company is important. This part of activity is like appreciating other stakeholders directly or indirectly associated with the success of the company. Being that Dyson is based on research, they would sponsor more engineering projects to make life easier and improve the quality of life. The CSR would act as a means of marketing the company, not only the new product under discussion but for their future and previous products.