Extension strategies
Extensions are away to prolong the products life.
- PRODUCT DEVELOPMENT- making changes to the product more appealing.
- MARKET DEVELOPMENT -finding new markets for existing products, for example Lucozade is now aimed at athletes as well as people who are ill.
- WIDENING THE PRODUCT RANGE - producing more varieties of the same product, for instance cola-flavoured smarties, or strawberry milky ways.
Tecsave could use the any of these extension strategies to prolong the life of there product except maybe widening the product range, but the rest would be suitable for there product. Walkers crisps brought tomato and marmite flavoured crisps to give them a boost the sales and it worked but I don't think this would work for Tecsave unless they brought a platinum edition.
Creating a brand name start with a very good product and distinguish this from to create a brand, the business must
Its rivals. This might be achieved by making the design of the packaging bold, attractive and instantly recognisable; or though advertising, so that the consumer relates the name to good and consistent high quality. LOGOS are also used - for example, all car companies have a symbol that they put on their cars.
E-Commence
E-Commence is the term used to describe buying and selling over the Internet. Business can now use their own websites to tell customers about the business and what they offer, and to advertise their products. Customers order products over the Internet, using the credit or debit cards.
For many small businesses this has created opportunities to beat the competition, but in early trading many businesses failed due to a lack of capital and cash flow problems.
Importance of packaging
Packaging is important in delivering goods to the consumer in a safe, hygienic condition. Cakes, for example, often have several layers of packaging to protect them from being crushed and to make sure that they reach the consumer in a good condition. Further packaging may be needed to help the retailers store the products easily and safely on the shelves. The packaging may be used by the manufacturer to promote the product, as the colour, design or lettering may make the product more attractive and noticeable to the consumer on the shelf. The packaging can be also be used to pass on details of contents, ingredients, weight and care instructions. Some of these now are a statutory requirement.
Problems of packaging
Problems can create problems for the manufacturer, as it adds to the cost of producing the goods. Excessive packaging has also been a source of complaint from consumers in recent years, as they have become more sensitive about the environmental issues. The packaging creates problems with its use of its natural resources and with its disposal afterwards. Many companies have now undertaken recycle as much of their packaging as possible.
Marketing
Marketing is ‘the management process responsible for identifying, anticipating and satisfying consumers’ requirements profitably’ (from the chartered institute of marketing).
- ‘Marketing is about creating customers by looking at all your activities though their eyes and giving the customers what they want and at a profit.’
- ‘Marketing is not just selling, it is about what a company believes about its products, it is the driving force for all the people who work there.’
From these definitions we can see that marketing activities include:
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Carrying out market research to identify customers needs and wants.
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Producing a product that meets customer needs and wants.
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Calculating a price that meets customer demands.
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Producing the right quantities to supply customer demand.
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Promoting the product to the customer.
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Distributing the product to the place where it is convenient for the customer to buy it.
Marketing is important to the whole business. Without it, the business could find itself trying to sell a new product that few people want. This sort of mistake can lead to big financial losses, because the business will have spent a lot of money developing and setting up the new product, and promoting its launch. If a business cannot meet a customers needs, the customers will go elsewhere. This could mean drop in sales and in market share for the business.
Marketing objectives
The main objectives or targets of any marketing department in a business are:
- To look continually at the business’s current market, and to be aware of things happening outside the business. For example, if your business makes washing up liquid and there is a large rise in the sale of automatic dishwashers, this would be important for your market.
- To find out consumer needs and wants by carrying out market-research activities.
- To try to increase the business’s sales and market share.
These objectives can only be achieved by the business if it always try to make sure that it is selling the right product, at the right price, in the right place, and promoting it in the right way at the right time. These are called the 4ps.
Tecsave
Tecsave should design a colourful and attractive package on their games, so that it will catch the eye of the customer, therefore they will hopefully sell more games.
Looking at the information that I have got the from the Internet and from the questioners I have found that the consumers want a computer game a shooting game. So we have decided that we are going to use that that they have said. Our game is going too be a shooting game for the computer. It will meet the customers’ standard because we are going to make it so it will not break under any normal circumstances and it will be sold at a price around about ₤20-₤30, we can sell them this cheap because we already have paid the over head costs, this is the cost of the electricity, phone bill and costs of the goods ect.
