Promotion strategy for Logitech’ s Triple Fi 10 Pro earphones
Response to: http://reviews.cnet.com/headphones/ultimate-ears-triple-fi/4505-7877_7-32492509.html?tag=mncol;lst;1
After reading CNet’s review about Logitech’s Triple Fi 10 Pro earphones, I figured it used a different promotion strategy than typical low-priced earphone producers do. Logitech sells one of the top quality earphones.
Its high quality product comes with an extremely higher price than typical on-shelf earphones in electronics stores, so it targets a segment of people who are into sound quality. When it comes to promoting, instead of advertising to attract the mass, the company tends to heavily rely on public relations because the company knows mass advertising would generate more cost than profit since not everyone is targeted, but a small segment. Logitech provides web pages where users can write reviews about the product. For example, users may read or write reviews on its own website, or amazon.com page making people with interest in earphones demand it. (Although Amazon is not what Logitech provided, the selling page was created by its distributor) Therefore, the company uses pull strategy making people demand it after reading the reviews, rather than using push strategy like cheap earphone producers do.
Logitech also uses sales promotion just like on Black Friday last week. I also believe it uses price skimming to extract the consumer surplus of the people who highly demand. I think so because its initial price was close to $500 in the first year, and it slowly dropped.
Every Black Friday, Logitech does a sales promotion. This year, its original price of $399 dropped to $90.
Positing itself differently than typical earphones, I believe the company’s reputation for performance earphones will last for a while.
Claudia agreed that companies should make a distinction between giving a real free good or service and giving a promotion, expecting something in return. I also agree with her as many companies try to draw people’s attention to their products. This happens everywhere around us. In UBC, I received a free 10-day gym use coupon by providing a promoter with my name and my phone number. I went to the gym and realized I needed to pay money for something. So it wasn’t exactly free.
This deception affects consumer behaviour afterwards. Those who have experienced this will learn that gym free use coupons are not free. Therefore, they will be irresponsive to promotions by fitness clubs. In the long run as many companies do not differentiate the promotion and free service, it leads consumers to build attitude that most promotions are not exactly free. So promotion events will take less effect, wasting companies marketing costs and changing society’s perception on promotions. Free is not “Do something for me.” Free is free. If companies don’t intend to spread goodwill, they should call it an offer.
How has Apple been so successful for the last 4 years? – It is all about marketing.
First iPhone in 2007
Apple has successfully penetrated into the smartphone industry in 2007. Its relative share in the industry still remains somewhat stable.
Today, I explain why it has been so successful for the last 4 years.
There was a number of smartphones already in the market before the first iPhone came out, but their market share in the mobile industry was significantly low. However, Apple successfully stroked the industry by knowing what customers wanted at that time. Apple knew what they wanted was not just touch screen phones with the Internet. They knew another revolution like GUI was in need to make phones easier to use. With the icons in the screen that directly took the users into the functions they wanted to use, Apple created a simple and intuitive device.
Their strategies also made it successful.
They focused on the product concept to have quality devices, yet knew about marketing myopia so did not go too far away from the demand. They also built strong customer relationships by encouraging two-way conversations from Apple stores and on the Internet. Apple regularly issued firmware with the functions in constant demand in turn.
Market targeting is another factor. They initially targeted young male consumers with income and some interest in the technology. As you can see from the picture below, most people waiting in line were young male.
June 29, 2007
Using the Boston consulting group approach, the iPhone will soon be a cash cow or dog. Their relative market share has been gone down. For one year, their share went down by 8% while Android’s market share doubled. iOS is now only occupying 20% of the OS while Android is occupying near 50%.
The smartphone market growth rate is also not growing as fast as before. It seems the only two dominant OS will rule for a while.
When considering microeconomics, another strong competitor, Microsoft will soon release Windows 8 incorporating tablets, desktops, and phones altogether. The Apple’s market share will continually go down.
The battle between two giant corporations, Samsung and Apple.
For the last few months, the lawsuits by Apple have been an interesting issue.
Apple sued Samsung for its tablet designs and touchscreen technology. It’s very interesting to me because this clearly shows that one of the microenvironmental actors, competitors is actually proven to influence firms’ performance in sales. Although the textbook mainly emphasizes how a firm has to provide more value and satisfaction than competitors do in the “competitors’ section, here I focus on how the action of competitors can influence the firm. (I’ll justify why Apple’s lawsuits are not proper at the end)
Apple and Samsung have sued each other in over 21 law courts in many countries to ban each other’s products and defend themselves. Apple already achieved its goal in Germany, banning Galaxy Tab 10.1 with the reason that Samsung’s tablet “bears a ‘clear impression of similarity’ with the iPad 2,” according to judge Johanna Brueckner-Hoffmann (URL: http://www.engadget.com/2011/09/09/german-court-upholds-injunction-against-samsung-galaxy-tab-10-1/).
It clearly affects Samsung’s sales in Germany and will affect sales in other countries as well because many other courts are likely to conclude the same thing. Samsung hasn’t been able to sell the product since July, 2011 in Germany due to being lost in the lawsuit. (URL: http://www.mobiledia.com/news/107455.html)
Clearly it shows how the actions of competitors to win others can influence the firm by decreasing its sales and destroying the reputation.
By destroying the reputation, I mean people who were interested in buying the product, Galaxy Tab 10.1 in other countries may think Samsung is a copycat.
Here, I add my personal view.
It’s funny to see how Apple has manipulated the picture of a Galaxy Tab 10.1 to make it look similar to the iPad2 and presented to the court. It was found out a few days after the court decision was made and a new decision will be made soon by Germany.
The top picture of the Galaxy Tab is the real one. The bottom picture picture is what Apple manipulated
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Hi Comm 296 104!
My name is Aaron Bae (Seongyun Bae) and I’m a 2nd year transfer student.
I’m taking this course because partly, it’s mandatory and partly, I believe it’ll probably help me with my career in the future.
I don’t have much exeprience with marketing as a job, but as a club member, I have promoted some school events to classes.
My favourite ad is a Thai commercial on TV that I saw on Youtube. Very Impressing.
For those of you who want to have a look, here it is. (Make sure you turn off the background music from my post)
Basically what it’s about is a deaf girl trying to learn violin can’t learn properly due to her physical disability. She learns from another old deaf man that plays violin on the street that being different from others is nothing. He explains to her that music is a “visible thing.” He tells her to close her eyes and feel the music.
When she joins a contest and plays the violin, not only does her music sound good, but also her hair looks very shiny without any damage. At the end, the story turns out to be a pantene shampoo commercial. It appealed to me because unlike typical commercials we see on TV, it actually has a story that makes people feel impressed. It’s more likely that people will remember the commercial.
Something personal about me… Hmm..
Well, I can talk about my hobbies.
I’m interested in photography, stock exchange and badminton.
I haven’t taken professional photography or stock class, but I’ve learend from experience for several years.
