Professional Documents
Culture Documents
What is music2go?
Companion Product to Etzel et al (2002)
Marketing
5 Marketing Teams
Distribution
Pricing
Promotion
Standard
Product Design
Youth
a) Product Design
Characterization
Product Segments
2 Dimensions
- styling - tech specs
Different
Configurations
Contract
Manufacture
Emergent Segment
(Sports)
R&D
- product cost - perceptual configuration
New Segment
(Kids)
Sports
Available
Youth
Unavailable
Standard Style
Youth
Standard Style/Design
b) Promotion
Advertising
Sales Promotion
Product segments
- lifestyle -demographics
Product lifecycle
characteristics
Promotion: m2g
Advertising Product Awareness Consumer Demand (Sales) Distributor performance Sales Promotion
Distribution coverage
10
c) Distribution
Distribution Channels
Optimizing Distribution
Consumer Electronics
(local electronics store)
Product Segments
- purchase behavior - demographics
Department
(e.g Sears)
Discount
(e.g Wal-Mart)
11
Distribution: m2g
# Reps
Distributor Support Demand (sales)
Rep remuneration
Coverage Segment
Potential Sales
Channel
12
d) Price
Market Conditions
Optimizing Price
Segment characteristics
- elasticity of demand price ranges -
No substitute products
Ability to reduce variable cost Product lifecycle stage through R&D Channels of distribution
13
Manufacture Cost
R&D
Base Cost
Pricing: M2G
e) Segmentation
Demographics:
18 years and less Fashion conscious Purchases made by
parents
Youth Segment
Promotion:
Mass media Point of sale
promotion
Product
Emphasis on
styling
Distribution
Deep product
assortment
Pricing:
$50- $60 Relatively elastic
demand
Customer service
(purchase advice)
15
Sports Segment
Demographics:
19-34 years of age Active lifestyle No family
commitments, high disposable income
Promotion:
Targeted media Distributor sales
force training
Product
Emphasis on
technology & styling
Distribution
Deep product
assortment
Customer service
Pricing:
$100- $150; Relatively
inelastic demand
16
Standard Segment
Demographics:
19-34 years of age Less active lifestyle vs
sports
Promotion:
Broad reach media Distributor sales
force training
No dependents, high
disposable income
Distribution
Broad product line
(accessories)
Product
Leverage use of
existing media
Customer service
(sales advice)
Average styling
& technology
Pricing:
$60-$100; Relatively unit
elastic demand 17
Growth
in specs
Maturity
Decline
minimization
Price
Lower over
time
Intensive Securing
purchase commitment
Brand
preference
18
music2go: A Summary
Interactive real time business simulation
Application of:
Market Analysis Segmentation The Marketing Mix The Product Lifecycle