Week 2.7 Pricing

Marketing Environment

Simon Isrif, 438344, DIM1VC

09-01-2017

Week 2.7       Pricing   

(The Illustrious Agency, n.d.)

           

Are there any price-related promotions (such as price discounts or multi-pack discounts) around your product?

Sennheiser does not focus on promoting its products in a price-related way, their promotion is more orientated on displaying the quality of the products. There are however some price-related promotions in the form of price discounts in the various retail and online stores in which the Sennheiser headphones are sold.

Which pricing tactics are being used for your product?

Sennheiser emphasizes a premium quality standard for its products and they are therefore involved in the non-price competition policy. Having the cheapest product in the headphones market is not Sennheiser’s goal, instead the company strives to offer the ultimate sound quality and undistorted listening enjoyment to its costumers (Sennheiser, 2016).

Which influence do other marketing mix elements have on the price of your product?

The place/distribution marketing mix element can influence the price of the products, if the selective or exclusive distribution method is used, a higher price can be asked for the products. Consumers will be prepared to spend more money because of the exclusive and premium status of these products.

The promotion marketing mix element can also influence the price of the products offer by Sennheiser. Premium prices are often not mentioned in the advertisements, however it is in some cases, the exclusivity associated with the premium price of the products can be included in the advertisements to show the high status of the products. Higher priced products also require a higher personal selling effort compared to lower-priced products, a higher level costumer service is necessary to help potential buyers that are hesitant due to the high prices (Dibb, Simkin, Pride, & Ferrell, 2016)

Describe whether your company does use price differentiation.

It can be said with quite certainty that Sennheiser uses price differentiation. Due to the varied and broad customer base of the company a difference in the charged product price is logical. Large business customers may be attracted with a lower price if an order of higher quantity is placed and individual professional customers that are interested in the Sennheiser products, like for example artists and DJ’s, may get a personalized price based on their demands and the level of relationship and loyalty they have with the company.

Estimate the price elasticity for your product.

Due to the availability of substitute products (other headphone brands) and the premium nature, and relatively low need of the product (not essential product) it can be estimated that the price elasticity of Sennheiser headphones is high. A change in price can have a dramatic effect on quantity demanded.

How can the manufacturer influence the consumer price?

Sennheiser is not only the seller, but also the manufacturer of its own products. The consumer price can be influenced by for example using a higher quality selection of production materials for the production process or by a sudden increase in the overall price of the current production materials and also by other factors involved in the manufacturing process such as an increase in number or quality of the personnel working in the manufacturing plants.

References

Dibb, S., Simkin, L., Pride, W., & Ferrell, O. (2016). 20. In Marketing Concepts and Strategies (7th ed.). Hampshire, United Kingdom: Cengage Learning EMEA.

The Illustrious Agency.Retrieved from http://www.illustriousagency.com/listing-of-services-pricing

Sennheiser. (2016). SENNHEISER AT A GLANCE. Retrieved from http://en-de.sennheiser.com/about-sennheiser-at-a-glance

Week 2.6 Services Marketing; Modifying the marketing mix for business markets, services and international

Marketing Environment

Simon Isrif, 438344, DIM1VC

21-12-2016

Week 2.6       Services Marketing; Modifying the marketing mix for business markets, services and international

 

(UFS, n.d.)

Which services (related to your product) are offered by the manufacturer of your product? Describe the extended marketing mix for these services.

Sennheiser offers both pre-sale and after-sale services for their headphones and other products. Sennheiser’s global services at a glance are the following:

• A worldwide network has more than 90 service centres in over 80 countries.
• A workforce with over 100 fully trained technicians.
• All service workshops carry a parts stock that meets the needs of their local customers.
• The service technicians can remotely order parts online.
• Each technician has instant access to the service documentation of more than 3.000 products.
• Nearly all reported problems are successfully resolved by our service technicians on their first call.

(Sennheiser, 2016).

Which new services do you see could be interesting to have for your product?

Sennheiser currently already has a very wide range of offered services relation to the offered products and therefore it is a difficult task to find new potential services that are not already in use. However, services that could be interesting are ones involved in a higher level of costumer involvement.

Explain the intangibility, variability, inseparability and perishability of these services and explain which consequences these service characteristics have for the marketing of your product.

To improve the intangibility, the inherent quality of services, the experience prior of the purchase, the experience after purchase and attributes after consumption have to be assessed.

The quality of the service is a key feature of services. Give two examples of how the quality of services for your product could enhance the client/consumer’s quality perception.

Quality of the services offered by a company in relation to their product is important to keep consumer loyalty and repeat purchase. To take as an example that could enhance the quality perception are the level of commitment and motivation of personnel to help customers with potential problems or questions, this improves the ambience that the customer experiences in the store which could lead to a higher appreciation and quality perception of the products. An

What promotional strategies could you follow in relation to the product issues and promotion? Describe a possible strategy for your product.

Senneiser is a global, respected and settled company and it is therefore advised to use the current product and promotion in a new country. This strategy is very efficient for Sennheiser because it eliminates the expenses of marketing research and product redevelopment for individual countries. The translation of the products and promotional massages is however advised to make sure potential clients understand the product and the company.

Explain how the P of people is linked to your product from the perspective of personnel

A company’s personnel represents the company and it is therefore very important to make sure that the interaction between them and the costumers involves a high level of human involvement and attention. Sennheiser values a quality based image of its products, which also means that personnel have to be specifically selected, trained and motivated to illustrate this professional and qualitative image.

References

Sennheiser. (2016). Sennheiser Global Services. Retrieved from https://en-us.sennheiser.com/global-service

UFS. (n.d.). Aim for the Services Marketing Module. Retrieved from https://lms.tuit.co.za/courses/95/pages/aim-for-the-services-marketing-module

Week 2.5 Channel players and physical distribution

Marketing Environment

Simon Isrif, 438344, DIM1VC

14-12-2016

Week 2.5 Channel players and physical distribution  

How is the product presented in a shop?

In this case I use Media Markt, Europe's number one consumer electronics retailer (Media Markt, 2016) located in Deventer, to give a detailed description of how the headphones/earphones produced by Sennheiser are presented in the majority of the stores that offer the product. Even though Media Markt is quite a big store, the clean and clear design creates a comfortable atmosphere for the costumers. Colors used in the store are primarily red and white, the same goes for the personnel’s clothing. The Sennheiser products in question are presented in the same way as other major electronic audio producers, in the headphones sector of the store which is located in somewhat in the back of the store. A reason why this specific location has been chosen could be that headphones are a relatively expensive product, a product which is not purchased on a regular basis and requires research and thought before buying. A front or near cash register location would therefore not be very efficient or necessary.

Where are the best known brands located? Which value brands are offered? Which own-label offerings are present?

Other best known headphone brands (Sony, Panasonic etc.) are located in the same location as Sennheiser, in the middle of the headphones section of the store. Value brands, which primarily consist of Media Markt’s own branded headphones (house brand), are located more on the sides of the section. The centralized location chosen for the Sennheiser products indicated the status of a premium product.

  

The number of facings of your product compared to the number of facings of competing brands. Measure the space on the shelves and calculate the “share of space” of your brand

The product has an equal share of facings (8x9=72 facings) compared to the competing brands. The share of space of all the competing brands plus Sennheiser is 1:5.

No brand, in relation to share of space, has a competitive edge. However, the central location of the Sennheiser headphones in the store section could be seen as profitable, causing the edge over competitors.

Describe the relation between transportation, packaging and communication in relation to your product.

Sennheiser headphones are packaged in a durable and sturdy case. The case communicates a no-nonsense vibe to its customers. This way of packaging is also effective for transportation, there is less need for additional protection which consequently causes a lower transportation cost.

References

Media Markt. (2016). Europe’s largest retailer for consumer electronics. Retrieved from http://www.mediamarkt.com/

Week 2.4 Marketing channels

Marketing Environment

Simon Isrif, 438344, DIM1VC

07-12-2016

Week 2.4      Marketing channels

      (Outsidesource, n.d.)

Draw an overview of the distribution channels for your product. Describe the channels in terms of complexity and distance.

Sennheiser uses multiple distribution channels for its headphones and other products to aim at a larger, more varied target group. Sennheiser focusses on both consumers and business customers. This multi-channel marketing strategy includes the following channels for consumers:

·         Producer-consumer: A direct, low distance channel with low complexity used primarily through eCommerce (internet communications, selling and purchasing).

·         Producer-retailers-consumers: A channel where products first go to retailers after production before they are sold to the consumers. Distance and complexity increases.

And the following for business-to-business:

·         Producer-business customers:  A direct channel similar to the Producer-consumer channel. An example in which this channel applies for Sennheiser is the selling of products to professional users, like for example DJ’s or other artists. This channel has a low distance and complexity, which consequently is useful for business customers who then can receive technical assistance with ease.

·         Producer-business to business distributors-business consumers: A channel that is aimed at reaching a larger number of business customers. Products are send to distributors before being sold to business consumers. By the building of an inventory of the distributors, a larger quantiy of good can be sold to companies in for example the office and telecommunication sector in which Sennheiser is active (Sennheiser, n.d.). The channel complexity and distance increases compared to the more direct Producer-business customers channel.

Describe which distribution functions are fulfilled through the different channel members.

Both the ‘Producer-consumer’ and ‘Producer-business customers’ channels serve as a direct channel in which distribution functions like price negotiation and costumer relationship building are the main focus. These channels create a greater communication and relationship between the producer (Sennheiser) and the costumers.

The ‘Producer-retailers-consumers’ channel and ‘Producer-business to business distributors-business consumers’ channel mainly fulfil the distribution functions involved in the promotional and storage/distribution sector (Tutorsonnet, n.d.).

How can your product’s image be influenced by the retail concept in which it is sold?

The retail concept in which Sennheiser headphones are sold can influence the product’s image greatly. Sennheiser values highly qualified dealers that focus on customer service and a qualitative retail environment to mirror the quality offered in their products. Sennheiser even has an “Authorised Sennheiser Partner” labelling system to protect the brands image (discussed in the next paragraph).

Which distribution strategy has been chosen for your product?

In 2013, Sennheiser introduced the selective distribution strategy for its products. This strategy applies for all the dealers across the different channels. The selective distribution strategy was introduced to protect the Sennheiser brand by providing accreditation, which in this case means labelling the qualified dealers as an “Authorised Sennheiser Partner”, this way of labelling channel members makes it easier to monitor and distinguish the difference between the various vendors (Sennheiser, 2013). Selective distribution is desirable when a company, like Sennheiser, values customer service and a high quality standard from its channel members.

References

Outsidesource. (n.d.). Making sense of multi-channel marketing. Retrieved from http://www.outsidesource.com/blog/making-sense-of-multi-channel-marketing

Sennheiser. (2013, November 11). SENNHEISER UK FURTHER INVESTS IN SELECTIVE DISTRIBUTION STRATEGY. Retrieved from http://en-uk.sennheiser.com/news-sennheiser-uk-further-invests-in-selective-distribution-strategy-

Sennheiser. (n.d.). SENNHEISER AT A GLANCE. Retrieved from http://en-uk.sennheiser.com/about-sennheiser-at-a-glance

Tutorsonnet. (n.d.). Functions Of Distribution Channel. Retrieved from http://www.tutorsonnet.com/functions-of-distribution-channel-homework-help.php

Week 2.3 Targeting and positioning

Marketing Environment

Simon Isrif, 438344, DIM1VC

30-11-2016

Week 2.3      Targeting and positioning

Create a short questionnaire with which you can measure the consumer perceptions of your product:

Consumer Perception Questionnaire

 

Answers to Questions 1-5:

 (SurveyMonkey, 2016)

Execute three face to face interviews with your friends and/or members of your family, based on the questionnaire you created. Create a positioning map for your product, based on these interviews.

Based on five interviews, given through the made survey, can be concluded that Sennheiser Headphones are perceived as primarily technological advanced and high performance (price worthy) related products. Multiple ‘excellent’ scores were given by the interviewed persons in these two sectors. 100 per cent of the people interviewed were familiar with the Sennheiser brand and 80 per cent owns, or has owned, one or more Sennheiser headphones. Sennheiser also has the competitive edge, according to the survey, with 100 per cent of the participants finding Sennheiser Headphones somewhat or slightly more effective, in relation to question 2-4, than similar products offered by Sennheiser’s main competitors (Apple, Shure, Beats) (SurveyMonkey, 2016).

References

SurveyMonkey. (2016). Sennheiser Perception Questionnaire. Retrieved from https://www.surveymonkey.com/analyze/z68u5JtofGpPI7n_2BSzz_2FBO_2FFKqsHztJUAaFEpysKXVA_3D

Week 2.2 Segmenting markets

Marketing Environment

Simon Isrif, 438344, DIM1VC

23-11-2016

Week 2.2      Segmenting markets

(Wikipedia, n.d.)

Describe the market segment(s) your product aims for. What segmentation targeting strategy does the manufacturer follow? Which market segmentation criteria are used? Also describe the positioning strategy used for the product.

Sennheiser has a very wide target audience, from broadcast and audio industry professionals and studio or sound engineers, to regular customers with different price range focusses, age and motives (Wickedweb, n.d.). It is a difficult task for Sennheiser to satisfy this diverse and wide target group and therefore a clear segmentation targeting strategy has to be used. Because of this wide target group, using the Single variable segmentation would be very inefficient, it would take too much time and resources to use one variable at a time to research all the consumers. The Multivariable segmentation technique would be a better fit for Sennheiser, using multiple variables like occupation (for example DJ’s or other audio industry professionals), age and income for segmentation would make it easier to find larger target groups and make the segmentation process more efficiently. Sennheiser has its own fully operating Consumer Division that focusses on staying ahead and researching of upcoming trends and consumer preferences (Sennheiser, n.d.). The positioning strategy used for Sennheiser headphones depends on the target group, the product has to be positioned in the mind of all the consumers of the various target groups and so the marketing strategy differs greatly. The right positioning and strategy for professional users, which can be achieved by for example promotions and advertisements, would be the focus on quality and durability, while for regular user the focus on fun, price and differentiation might be more important.

Describe the basic conditions for effective segmentation and evaluate whether these conditions are met for the segments you described before.

The basic conditions for effective segmentation are:

·         Homogeneity of segments, which means that people in the segment group should have relatively the same needs for a product or service,

·         Heterogeneity between segments, which means that people in different segments should have different needs.

·         Accessibility, which means that the product or service should be easy to reach due to the developed marketing mix.

·         Stability, which means that the segments will be around long enough for any action to be taken.

·         Buying power, which means the segments should be profitable enough to compensate for the developed and maintained marketing mix (Blackboard, n.d.).

Most of the basic conditions for effective segmentation are met for the segments described before. Homogeneity of segments, because of the same aim for quality products of the professional users of Sennheiser headphones for example. Accessibility, due to difference in positioning achieved my promotions and advertisements. Stability, and therefore also buying power due to large size and quantity of target groups.

References

Blackboard. (n.d.). Marketing Env2 Wk2 Ch7 Market Segmentation. Retrieved from https://leren.saxion.nl/webapps/blackboard/execute/content/file?cmd=view&content_id=_1477773_1&course_id=_30261_1&framesetWrapped=true

Sennheiser. (n.d.). SENNHEISER AT A GLANCE. Retrieved from http://en-uk.sennheiser.com/about-sennheiser-at-a-glance

Wickedweb. (n.d.). Sennheiser. Retrieved from http://www.wickedweb.co.uk/casestudies/sennheiser/

Wikipedia. (n.d.). Typical bases used to segment markets. Retrieved from https://en.wikipedia.org/wiki/Market_segmentation#/media/File:Market-segmentation.jpg

Week 2.1 Marketing Research

Marketing Environment

Simon Isrif, 438344, DIM1VC

16-11-2016

Week 2.1      Marketing Research

(Baschnagel-consult, n.d.)

Describe the Nielsen retail panel, explain which data the manufacturer of your product can buy from Nielsen and explain the benefits of these data.

The Nielsen retail panel delivers local and global insights into consumer behaviour and product sales across different categories. The combination of both deep data and insights the company provides are useful for business planning (Nielsen, n.d.). The Nielsen retail panel can provide a very wide range beneficial data for Sennheiser. Nielsen could provide Consumerization, a technique that broadens segmentation and that could help Sennheiser boost its consumer engagement. The company could also provide an Innovation process that identifies what consumers say they need as well as the needs they haven’t articulated yet, which could help Sennheiser with keeping up with the competition. Finally, Nielson could also provide Sennheiser with data which could increase marketing effectiveness by analysing current accomplishment and sales effectiveness by understanding consumer shopping behaviour so an enhancement in the marketing approach could be achieved (Nielsen, n.d.).

Describe the marketing research company GfK, and explain what kind of data GfK could generate with its consumer panels for your product / brand? 

GfK is a provider of relevant market and consumer information. The company uses technologies and data sciences to turn big data into smart data so that their clients have the competitive edge (GfK, n.d.). GfK’s consumer panels could generate relevant data for Sennheiser. The consumer panels provides an understanding of consumer behaviour, attitudes and who they are. Shopping behaviour, which the consumer panel also provides, could also be very beneficial for Sennheiser. It provides an analysis of consumer decision making a path to purchase. To conclude, GfK consumer panels could provide Sennheiser with a clear view of which audiences to target, the identification of market opportunities and it could help the company develop strategies for growth (GfK, n.d.).

Create a short questionnaire (12 questions) that you can use to research consumer attitudes towards your brand. Hint: find out how attitude surveys look like in general, and then apply it to your brand:

Sennheiser Attitude Survey

1.    Sex

Male:        ____

Female:    ____

2.    What is your age?

Under 20:             ____

20-29:                    ____

30-39:                    ____

40-49:                    ____

50-59:                    ____

60 and over:          ____

3.    What is your general opinion on Sennheiser?_____________________________________________

4.    When did you get familiar with the Sennheiser Company and by which means (advertisement, social media, relatives etc.)?  

_____________________________________________

5.    Have you ever bought a Sennheiser product? And if yes, how many?

_____________________________________________

6.    Do you prefer to buy Sennheiser products in retail stores or in online stores? Please explain why.

_____________________________________________

		Strongly Disagree			Strongly Agree
	Question	1	2	3	4	5
7.	Sennheiser provides quality products
8.	Sennheiser provides quality service
9.	Sennheiser is innovative
10.	Sennheiser is able to compete with other audio companies
11.	Sennheiser needs to increase product advertisement

12.   Do you have any personal tips or insights for Sennheiser?

_____________________________________________

Thank you for answering this survey.

References

Baschnagel-consult.Retrieved from http://www.baschnagel-consult.com/services/market-research/

GfK. (n.d.). About GfK | GfK Global. Retrieved from http://www.gfk.com/about-gfk/about-gfk/

GfK. (n.d.). Consumer Panel | GfK Global. Retrieved from http://www.gfk.com/solutions/consumer-panel/

Nielsen. (n.d.). Retail Measurement | In-House Retail Experts | Nielsen. Retrieved from http://www.nielsen.com/ssa/en/solutions/measurement/retail-measurement.html

Nielsen. (n.d.). Solutions | Consumer Insights for Smarter Decisions | Nielsen. Retrieved from http://www.nielsen.com/eu/en/solutions.html#consumerization-consumer-insights