The marketing mix and strategy used to “sell” a product or service to the targeted customers determines its success in the market. One important thing to understand is that “new products can be appealing to the targeted consumers if they seek to improve their living conditions” (Hooley et al. 63). SolaTec is a revolutionary solar-powered that can be used to heat or cool houses. SolaTec is manufactured and marketed by SolaTec Technologies Company. The product consists of a solar panel that utilizes energy from the sun to ventilate, heat, or cool houses. The idea behind this revolutionary product is to address the problems of environmental degradation and ongoing climatic change. This project will take SolaTec product and walk it through the 4Ps of marketing.
Product
The new product for this project is SolaTec. This new product consists of a solar panel that captures energy from the sun. This energy is used to cool, heat, and ventilate the house depending on the changing weather conditions. It is notable that the new product will play a significant role by reducing the costs incurred by modern house heaters. As well, the device does not emit gases thus making it sustainable. The new “environmentally friendly” gadget can provide the most efficient cooling and heating solutions for buildings. This aspect will make the product successful in the market (Fifield 38). The product also uses minimal sunlight to generate the required energy. The customer will have to purchase the package and have it installed in the house.
For very many decades, different individuals have used conventional heating appliances to regulate their house temperatures. These appliances are usually effective and have been successful in the market. However, the outstanding drawback is that such appliances require constant supply of electricity. As well, they consume a lot of energy thus increasing fuel consumption. The appliances are also expensive to install and need constant maintenance. That being the case, the new SolaTec device will address most of these drawbacks. This aspect contributes to the product’s value. The other value is in the product’s benefits. The new product provides heating and cooling solutions for houses at a cheaper cost. The devices are environmentally friendly thus promoting sustainable practices. With proper branding and promoting, more customers will embrace such values and eventually purchase the product (Hooley et al. 69).
The other important thing to consider is the targeted audience the new product. The “lifestyle theory” can be used to identify the targeted customers for this product. The cultural, environmental, technological, and social aspects of a society will determine the lifestyles of its people. Since more people are becoming sensitive about the environment, it is agreeable that the product will be acceptable in the market. As well, the changing weather conditions explain why people should either cool or warm their houses at a cheaper cost. The availability of a sustainable product will attract more customers. “The lifestyle of the customers will also encourage them to use the product (Hooley et al. 49)”. This explains why SolaTec has an established target audience.
With this knowledge, it becomes easier for the marketers of the product to target their audiences based on their income levels and expectations. The idea of “segmentation” is also needed in order to make the marketing process successful (Fifield 28). The marketers should target the customers based on demographics, socioeconomic factors, and psychographic patterns. For instance, many people are sensitive about the environment. That being the case, they will play a significant role towards the success of SolaTec in the market.
Price
According to Fifield (47), “It is necessary to use the best pricing strategy when introducing a new product in the market”. The marketers should design the best pricing plan in order to make the new product competitive. There are different pricing strategies used for new services and products. That being the case, it is necessary to select the best strategy depending on the anticipated goals and business objectives (Hooley et al. 62). After introducing SolaTec in the market, the best pricing strategy will be necessary towards the success of the product. The fact that SolaTec is an acceptable product in the market gives it an added advantage.
The first thing to understand is that SolaTec is a “high-quality” product. However, some companies dominate the market (Fifield 62). These companies provide different heating appliances to the customers. This explains why the level of competition will be extremely high. That being the case, a “penetration pricing strategy” will make SolaTec successful in the market. With the use of the “penetration pricing” approach, the product will become successful because of the increased loyalty from the targeted customers. This pricing strategy will make it easier to attract more customers while at the same addressing the issue of competition in the market. With a high penetration price, the customers will be willing to purchase the new product thus making it successful in the market.
As well, a “competition-based pricing” strategy should be considered during the marketing process. Since this is a new product in the market, the use of this strategy will make it easier to attract more customers and make the product successful. A “discount strategy” for SolaTec can make be used to get the needed market position and share. The use of discounts will attract more customers thus competing against the existing products in the market. Such pricing strategies will help the company encourage “repeat business” (Hooley et al. 84). This will promote the idea of brand loyalty thus making the product successful in the industry. SolaTec will also encounter numerous challenges in the industry. At the very start, a “discount pricing strategy” will play a significant role towards introducing the product to the customers. The “penetration pricing strategy” will make it easier for the customers to differentiate SolaTec from the existing house heaters in the market. This will be the first approach towards a successful marketing practice.
Place
The nature of a product determines the best distribution channel in order to market it successfully in the market. The manufacturing company can use different channels to distribute SolaTec to the targeted customers. The first channel is the use of “retailers” or “customer points”. With such retailers, SolaTec Technologies Company will transport the products to the retailers. The customers will then purchase the devices from the retailers. This approach will make it easier to market the product to more customers in the market (Fifield 92).
The other channel of distribution is “direct marketing”. This is a simple method because it omits all the intermediaries or “middlemen” (Hooley et al. 98). The manufacturing company will market the product directly to the customers. In order to make the distribution process smooth, the company will create various outlets whereby the customers can purchase the products directly from the manufacturer. The company will also provide the needed technical knowhow and installation services to the customers.
The use of “direct marketing” strategy will be essential because the product is technical and requires some form of expertise (Hooley et al. 69). The use of the approach will also make it easier for the manufacturing company to realize its marketing goals. The customers will also find it easier to purchase the products from the selected agents thus making the marketing process successful. This is also an opportunity to provide customized support to the targeted customers.
Promotion
The other important concept in the marketing mix is “promotion”. Product promotion is without doubts one of the best strategies to inform more customers about the existence of a specific product in the market. The use of a proper promotion mix will make it easier to market the product to the targeted customers (McDonald and Wilson 38). To begin with, the manufacturing company should use the media to sensitize the customers about the quality and effectiveness of the product. The best media that can help promote the product includes newspapers, television, and radio. These channels will sensitize more people about the existence of SolaTec in the market.
It will also necessary to embrace the use of social media. Today there are more people using social media sites that ever before. The marketer can use different social media such as Facebook and Twitter to promote the product. This strategy is appropriate for SolaTec because more people are using social media to communicate, share their ideas, and market their products. This media can make it easier for the marketers to achieve their goals (Fifield 106).
The other important approach is the use of “Consumer Appreciation Forums”. During these forums, the customers will come together, talk with the technicians, and exchange their views with the marketers. By so doing, the company will get a chance to attract more customers to buy the product in the future. As well, it will be necessary to conduct “after-sale surveys” to monitor the experiences of the customers from the product (McDonald and Wilson 86). These surveys will make it easier to make relevant decisions for future marketing strategies. The promotional mix will also include spokespersons who will communicate to different potential customers about the product. The approach will encourage more people to purchase the product. This mix will definitely be effective thus making the marketing process successful.
How the Product Addresses the Triple Bottom Line (TBL)
SolaTec is itself an environmentally friendly product. The manufacturing company has produced the product as one way of tackling the issue of climate change. This explains why the product itself is socially responsible. As well, the manufacturing company and marketers should plough some of its profits back into the society. This will be essential in order to support the environment and help different people to overcome most of the challenging affecting them. By so doing, the company will be addressing the TBL requirements thus making its business practice socially responsible. The manufacturing company can also consider different aspects such as the environment and the society during its accounting reporting. This approach is necessary because it will make the company an acceptable player in the industry. The strategy will make it easier for the company to market the product to more customers (McDonald and Wilson 54). From the above discussion, it is notable that SolaTec is an “environmentally friendly” product that addresses most of the issues arising from the use of contemporary house heaters. With the above marketing mix, SolaTec will definitely be successful in the market.
References
Fifield, Paul. Marketing Strategy. New York: Routledge, 2012. Print.
Hooley, Graham, Brigitte Nicoulaud and Nigel Piercy. Marketing Strategy and Competitive Positioning. New Jersey: Prentice Hall, 2011. Print.
McDonald, Malcolm, and H. Wilson. Marketing Plans: How to Prepare Them, How to Use Them. New York: John Wiley & Sons, 2011. Print.