Satellite Television – Essay Example
The paper "Satellite Television" is a marvelous example of a marketing essay. The product that has been selected is direct to home satellite television, it will offer more channels than any other existing provider, the cost will be very competitive. The installation would cost about $50, this includes the hardware setup and the installation fee and then monthly charges of $ 20 would apply, the charges would vary depending on the package, the most basic pack would be available for $ 20 a month.
The product would mainly be sold in the showrooms and aggressive marketing would be done to ensure that the product does well in the initial few months. The retail outlet will emphasize value as well as high quality.
The price is crucial because there are many similar products available in the market, masses can be attracted by making the product cheap and affordable.
The product will mainly target people who are value-conscious and who do not like to spend much, the price will convince them to shell out money.
Price competition would be crucial here, Sky Tv and broadband slashed prices in the UK because Virgin was giving them a tough time and the profits have increased since then so it has been a good move. It would not be possible for the manufacturer to price discriminate because the product will only be sold at one particular price and the price will be made known through advertisements so price discrimination does not come into play here. Skimming would not be possible for this product because this is not a new product, penetration is the only way out. Let the customers start liking the service and then the prices can be increased gradually to get more profit, penetration will be followed for this product.
The price of the product will affect perception; potential buyers will become buyers upon knowing that the product is really affordable and worth it. There is a possibility of the product engaging in price discrimination because the packages especially the higher end packages may not be affordable for everyone who buys the product. Distribution outlets are crucial here; the internet would play a pivotal role in selling the product. There will be multiple websites designed to both promote and sell the product, this will be of the most important distribution outlets, other than this there will be showrooms set up to sell the product, these will be the main distribution outlets for selling the product.
The distribution outlet is expected to remain consistent with the image of the product. The product is expected to do well because it will be cheap and affordable initially but as more buyers start buying it, the prices will be increased slightly to get more profit and with more profit, the services will also get better to lure more customers.