Marketing And Product Essay Example

a target market for both consumers and merchants.

Dixie is facing the decision of whether to segment their consumer market by geographic location, attitudes, work and life styles, income levels, or a combination of these factors. Additionally, they need to determine whether to use a pull or push strategy for promoting their products. Furthermore, Dixie must consider various streams for product promotion, including sales promotion, direct marketing, and traditional advertising. Within the advertising stream, options include radio, newspaper, magazines, television, billboards, backbit poster boards, and portable kiosks.

In the merchant segment, we must choose which retailers to target. Product Arena and our team are confident in using RIFF technology for the Dixie platform. Arena is considering whether the key chain tag and terminal are the best system or if implementing a card system would be more widely accepted. Additionally, we must decide on the location for launching our product, either nationally or exclusively in Ontario.

If we choose to launch this product in Ontario, specifically Toronto, we need to determine how to distribute the tag we manufacture to our consumers. Additionally, Dixie must develop a marketing mix that allows us to reach our objectives. To assess the internal aspects of our company, we need to compare the strengths and weaknesses of Dixie. Our product offers a convenient and fast service for people who are "on the go." As long as there is money in their Dixie account, consumers can enjoy this feature.

Despite the fast speed of the Dixie tags, they are still secure as the tag and terminals communicate with the Dixie Servers. Additionally, since the initial stages of product development, the company has

successfully attracted two major banks as well as TELLS Mobility, establishing a strong relationship for product distribution. However, Dixie's weaknesses lie in the absence of a marketing mix and a target audience for the product. This lack of direction poses a significant challenge as we possess a valuable product but lack guidance on how to proceed.

When conducting external analysis, it is important to consider both potential opportunities and threats. One opportunity we have is the possibility of entering a growing market for direct payments that is becoming more open to new solutions. This can be observed through the decreasing national average value of debit transactions, indicating that although people are making more purchases, these tend to be smaller in value. However, evaluating the threats at this stage poses a challenge as our product has not been released yet.

Other companies have also developed a comparable system where individuals can make small purchases using a prepaid account. However, these competitors have faced challenges or discontinued their program. Using the PESTER analysis, we can examine the external factors impacting our product. Initially, there are no political regulations restricting our product. This analysis is based on the current situation, but once our product becomes successful, we will implement a feature allowing users to deposit money into their accounts.

According to current economic trends, consumers are increasingly using their debit cards for direct payment. Notably, the average value of purchases nationwide is decreasing over time. Additionally, we have various methods to market our product and access diverse multimedia platforms. The technology employed in our products has already been utilized by other companies in the past. This

technology provides a highly secure option for individuals seeking fast payment for their purchases.

The effect of economic trends on the external environment can be seen in the use of debit cards for making direct payments. The rise in transaction volume and decline in average transaction amount indicate consumer demand for this product. In order to meet our goal of entering the market and capturing a 6% market share by 2003, it is crucial to carefully assess all available options and weigh their advantages and disadvantages.

In order to effectively evaluate the pros and cons of each element in the marketing mix, it is essential to categorize them into distinct segments. When analyzing the target market, there are different options for segmentation: geographic location, attitudes, work and lifestyle preferences, and income levels. To accomplish our goal of acquiring six percent of the market share, a strategic approach would involve initially conducting a geographical analysis to determine which province would yield the most favorable results.

The debit direct payment table reveals that Ontario had the highest payment of 6,551,298 in 2001 among the ten provinces. Comparing to 1999, Ontario increased their direct debit payment by approximately 13% over the two-year period. Although Ontario had the highest number of debit direct payments, it is Newfoundland that experienced the highest overall increase in payment, which was around 17% overall. Therefore, we currently have two choices: Ontario, with the highest number of debit payments, and Newfoundland, with the highest overall change between 1999 and 2001. By targeting the Ontario market due to its higher number of debit payments, we can establish a strong presence. However, it is crucial to

consider that these debit payments may be for larger purchases. Deist's products are designed for low-value purchases and are intended for quick and simple transactions. If the majority of transactions are of higher value, the product may not perform well and could receive negative reviews. On the other hand, we observe an increase in debit direct payments for Newfoundland.

The community's growing knowledge of new technology is beneficial for us. By launching our product early during market growth, we can increase awareness and enhance our chances of achieving our objective. However, the large volume of debit direct payment transactions (250,010) presents a challenge to attaining our initial goal of gaining a six percent market share. Nevertheless, considering the expanding market, it is probable that we will attain a 50 percent market share by 2007.

The total number of debit direct payments in Canada increased by around 12.5% from 1999 to 2001, reaching a count of 17,635,731. By focusing on the national level for our product, we can achieve greater visibility. However, it becomes concerning when comparing this to other regions as we lack data on the magnitude of these purchases. If most purchases have a high value, consumers would prefer a slower payment process.

The product's intended use is contradicted. It is difficult to obtain sufficient information about the attitudes demographic. We need to consider the market segment as well as national and provincial trends. At a national level, there is a greater willingness and acceptance of debit direct payments. Each province is also seeing an increase in the number of direct debit payments. Therefore, even at a provincial level, we can observe acceptance. It

is important to consider the magnitude of these purchases.

If the majority of payments are high value, Deist's product will not be successful. Dixie finds the work and lifestyle segment more attractive as a market because it aligns with the features of the product. Our product is ideal if our consumers are always busy. By simply tapping the tag on the terminal, consumers can leave within seconds. Furthermore, as the economy grows, the working industry expands. With limited breaks, consumers want to make their purchases quickly and continue with their day.

The drawback of this scenario is that customers must allocate time to deposit funds into their Dixie account. It is crucial that Deist's product remains unaffected by the income levels of consumers. This is because consumers have the ability to add as much money as they require to their Dixie prepaid account. The only factor that may impact this segment is the fee we impose. If we decide to charge for the account, it may deter some customers. As for promotion, we currently have two options: employing either a pull or push strategy to promote our product.

When it comes to advertising, there are various streams to choose from, including radio, newspaper, magazines, television, billboard, backbit posters, and ratable kiosks. In developing our overall strategy, we must evaluate our company's current position and decide which approach would be most beneficial for us. If we opt for a push strategy, we would focus on captivating consumers by using guerilla marketing tactics that expose them to our product from different perspectives. On the other hand, a pull strategy aims to highlight the unique attributes of our

products in order to attract consumers.

Instead of coercing our product, we aim to generate interest in the market. Through the radio, we can attract many consumers who fall into the epistyle segment. The radio advertisement will be 30 seconds long and air during the rush hour time slot. The cost of the advertisement varies depending on the city: Toronto ($250), Montreal ($175), and Vancouver ($175). This affordable cost, coupled with maximum market exposure, makes it an ideal choice for promoting our product. By advertising during rush hour, we can appeal to the work and lifestyle segment.

When targeting busy consumers, it can be challenging to effectively advertise. However, utilizing a radio ad can assist us in reaching our target audience and increasing awareness about our product. It is crucial to recognize that this type of advertising will mainly attract individuals who listen to the radio, such as those in their cars or with a nearby radio. Furthermore, we should take into account that people may feel stressed during rush hour and might not pay attention to the radio advertisement. Alternatively, we can consider newspaper advertising as an additional promotional option. This form of advertisement would involve a half-page placement. In terms of cost, Toronto would be priced at $15,000, Montreal at $7,500, and Vancouver at $15,000.

The expenses are steep, but we are targeting highly popular newspapers. The advantage of this approach is that Dixie will gain significant market exposure from these well-known newspapers. However, this also comes with the drawback of high costs due to the prestige associated with these publications. The same positive and negative aspects apply to magazines as well. The

only additional drawback is that the magazine would only reach a specific audience of subscribers.

One option to consider is airing a 30-second advertisement on a local TV channel. This ad would be shown during busy periods, allowing us to reach a large audience. Additionally, the advertisement would also be broadcasted on a popular coal channel. However, the downside of this choice is its high cost. Considering Dixie's current financial limitations, it is crucial that we wisely allocate our marketing resources.

The cost for Toronto, Montreal, and Vancouver is $15,000, $10,000, and $12,000 respectively. Alternatively, you can use posters in various locations. There are two options to choose from: one provides 60 sites/locations while the other offers 8 actions for posting the posters. Both options have a duration of one week. The cost for subway posters in all three locations is $5,300. Subway posters offer the best market exposure due to their multiple sites and longer duration. Street posters may not have as many locations but make up for it with high volume.

The cost of using subway options for a week is $4,000. Alternatively, there are indoor and outdoor kiosk options available. The indoor kiosk costs $5,000 while the outdoor kiosk costs $10,000. In addition, employing 2 staff members would cost $2,000. One advantage of these options is that the staff will receive training in product sales. It should be noted that the indoor option assumes our location to be in high traffic malls.

When it comes to outdoor exposure, attracting the attention of most traffic can be a challenge. We also need to decide where to launch the product - nationally, provincially, or

municipally. When analyzing demographics and attitudes towards direct debit payment, we notice similar patterns. By using the same data and conducting market analysis, we can confirm that people are indeed using this payment method. Ontario has the highest number of direct payments while Newfoundland has experienced the largest percentage increase.

Once again, we need to analyze the predominant spending for these payments. Under the "Price" category, we must consider how we charge our consumers and retailers. Consumer options include being charged for a preset number of transactions, a monthly rate, each individual transaction, a combination of the above, or no charge at all. Merchants have the same options except for the preset number of transactions. Any charge under the consumer section of this category would be seen in a negative light.

Customers are required to pay for the service of reducing waiting time, despite the option of using a debit/credit card for a slightly longer duration. The prepaid system offers only the advantage of quick access, which is applicable to any charging method for consumers. However, it is the merchant's responsibility to bear the cost as the prepaid system operates similarly to debit and credit cards. Retailers would prefer receiving a monthly fee instead of being charged per transaction.

Our service caters to both larger retailers and smaller retailers. Larger retailers with high transaction volumes would find our service cost-effective, while smaller retailers would appreciate our pricing structure based on the number of transactions, which is more affordable. The retailer's decision will depend on their typical transaction volume, as this could affect the demand for our terminals. Alongside Dixie's implemented tag system, we are also

considering a card-like system. However, it is important to mention that the tag system does not have security measures like PIN requirements, making it susceptible to theft and unauthorized usage.

Due to the prepaid structure of the system, consumers are investing their own money into their accounts. Implementing the card system and associated tag could impact the company's reputation. Dixie was initially established to provide a convenient and efficient method for small purchases. However, introducing a card system would detract from the company's image of being fast and straightforward. Conversely, we do not want to compromise on security in order to enable quick purchases, and introducing a card system would encourage consumers to try us out.

Even when considering each option individually, Dixie still needs to evaluate marketing mix options. The first option involves targeting consumers on a geographical basis, either focusing on a) the province with the highest number of transactions or b) the province with the highest percentage change. Whichever option Dixie chooses, it will result in a different promotional ad. For option a), Dixie should use a pull strategy to generate demand for the product. Therefore, the most favorable choice would be to use guerilla marketing, utilizing local television and subway posters.

This plan will effectively target the majority of Dixie's desired customers. The promotion for section b) will entail the use of kiosks and posters to raise awareness about our product, as direct payment is still a relatively novel idea. By increasing awareness through kiosks, we can enhance acceptance of our product in the future. Both options involve charging retailers a monthly rate that is comparable to what debit and credit

card companies charge. Furthermore, there is potential for expansion on either a national or provincial scale, depending on which section we select.

The current tag and terminal system will remain in place. The alternative option focuses on the consumers' work and lifestyle. In this option, the promotional ads will be changed to radio and local television ads. This is because we are targeting busy individuals who are constantly on the go and won't have time to view posters or visit kiosks. We can introduce other promotional ads at a later stage in the product's life cycle. Our strategy would involve using a push approach to encourage retailers to sell the products to consumers.

Our primary objective is to raise awareness about our product through a free offering for both consumers and retailers. However, in the future, we intend to implement a monthly fee for retailers. We recognize the importance of maintaining the existing product as it accommodates the busy schedules of our consumers. By utilizing the tag system, we can deliver efficient service that caters to their requirements. Our marketing strategy will concentrate on densely populated cities, particularly Toronto, which boasts the highest number of debit direct payment transactions in Ontario. Furthermore, the selected advertisement is pertinent to Toronto.

The third marketing mix focuses on addressing consumer attitudes towards the security of the tag system. Therefore, we plan to release a card system instead. Previous companies have indicated that the industry is not yet prepared for the tag system. Although the card system provides consumers with more security, it compromises the company's goal of providing a quick and easy experience. After careful analysis of

the alternatives, it is recommended to pursue the Ark and Lifestyle marketing mix.

The text explains that the appeal of quick and easy purchases aligns with the company's image. To reach our busy target market, we would use radio and television ads, as these consumers have limited free time, usually spent at home watching TV or during rush hour listening to the radio. In addition, we would implement a push strategy by encouraging retailers to promote the product. Initially, retailers will not be charged to incentivize promotion. Once the product gains popularity, we can begin charging a monthly rate.

We would lower our price below debit and credit cards in order to attract more retailers to use our terminals. Our preferred location for distribution would be Ontario, due to the high volume of direct payments. We chose this option because the high number of transactions in Ontario would increase the likelihood of achieving our first objective of six percent. As a backup plan, if the market does not respond positively to the tag system, we would implement the card system. This would demonstrate to the market that Dixie is prioritizing security while still striving to provide fast service.