Shopping Networks Price Everything to Sell

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The marketers have become more innovative to catch up with the rhythm of the market, and to utilize every single moment for product promotion and communication for effective sales to happen, through varied sources of media. This paper will deal with a similar kind of situation, using the marketing theory of situation analysis, where the essence of the case concerned will be concise for a particular focused situation to analyze the elements, incorporated in the concepts. The activity will be supported by personal opinions and recommendations, to strengthen the future possibilities of success and overshadow the disadvantages by advantages.

Here the paper is talking about a big time shopping network business that can catch the customers’ attention even between switching the channels, while watching TV. It gives no chance to its target audience to miss the product information and availability. Using the hammer technology, by repeat telecast and wide range of service outlets, it keeps on increasing the brand recall of their own company including the array of brands it hold in its brand baskets, among the exclusive customer base it has.

The product line leaves nothing for the customers to search anywhere else. Companies running these businesses are mighty exited to add more products to the offer list; to make a huge inflow in their small business, as, though they sell on discount, the network concept makes a mammoth turnover of merchandizes through various channels. But, the catch to attract its customers is, they never sell the products at the retail price. Here the situation is projecting the two network giants like, Home Shopping Network (HSN) and QVC (Quality, Value, Convenience).

In three decades the companies have made an average customer base of 88 million. To increase the coverage, in addition, they have their 24 hours TV channel and Web site to penetrate deeper into the target segment for maximum coverage. Over-and-above, the have the retail outlet in different places to met in person. The mail order business supports cater to the fast dealings between the host and vendor. Celebrity endorsement has been a strong factor for the business.

This network business follows a reverse order pricing strategy, starting with discount, eventually increasing the price with time. Other special event pricing strategies with Flex-pay, where the customers can chose the EMI options, are also common in the business. To encourage the buying tendency, shipping and handling charges are often levied, but generally it is attached with the orders. The broadcasted shows are interactive, letting the viewers a chance of instant engagement with the show making them a loyal cult of the particular marketing concept.

This concept relies on the idea of capturing the untapped market by the use of demonstration, which might interest a non-viewer of the shopping channels to buy a product, after understanding the detailed demonstration and the utility of the product. The 5C method of marketing theory is in use to evaluate the situation. Here the 5C Analysis evaluates the environmental factors of the micro (internal) and macro (external) situations. The Cs here denotes the company, collaborators, customers, competitors and climate.

The company holds the elements like, the product line, image, technology, culture and goal. As companies, the situation here displayed a wide range of product that any customer can use anywhere. Image is a considerable issue with the presence of branded product and the celebrity endorsements. The technology is highly focused on communication, mainly with an access of 24 x 7. It is developing a cult culture for this particular and unconventional shopping experience, with a goal of capturing the entire untapped market.

Collaborators include the distributors, suppliers and alliances, where the full coverage of the product promotion is done by the TV channels, internet sites, mail orders and retail outlets. This covers the demonstration and delivery between the host and vendor. Customer is a huge segment to cover. It identifies the market size and growth, segment, motivational factor, decision maker, buying process, etc. the network business has made the market size and growth enormous and ever expanding. More people are glued to TV; more possibilities are there, same in case of internet too.

Since a person is surfing the channels or internet by itself, mostly the viewer becomes the buyer, motivated by the detailed demonstration. The buying process is as easy as making a call, where the host and the vendor meet for the live demonstration and installation. Competitor is concerned about the product, positioning, market share and strength and weakness of the competitors. The situation reflects a cut-through competition. Both the companies have positioned the products from premium to general category, keeping the lowest common denominator of using various media channels and point of physical contact.

No competitor is weak, considering the access of information of the companies. Climate, the external factor are mainly subjected to the rules and regulation of a place. This element of the analysis needs more light in context of the situation provided. Companies can get approval from the apex body of the financial institutes to have various modes of payment and securing customers’ money from the online fishing. They can also offer their mode of business in the stock clearance sales as an additional of income, operating with the normal market (Net MBA, 2007).

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