Question

On a trip home during the summer break, you pay your Uncle Dave a visit at his record store. When you walk in, you notice there is not one single customer. “I have run this store since the 1980s,” Uncle Dave says with a sigh. “We were the first store in this whole town to sell compact discs! But now, it feels like we’re at least a decade or two behind the times. No one buys records anymore—or even CDs! I have thought about just closing down the store and retiring a little early. But I can’t stand the thought of doing that just yet. I wish there was some sort of new direction I could take things in.”

You explain to Uncle Dave that the best idea would be retooling his marketing plan. “Now, you know I don’t know anything about doing that,” he replies. “My business had always sold itself until just a few years ago. I had no need for marketing.” Suddenly, a light bulb goes off in your head. Since you’re studying business in school, why not put the skills you have learned to work by helping out Uncle Dave?

Before leaving, you tell Uncle Dave you will be working on a marketing plan for him. Write a professional 1-page (300-500 word) plan that addresses all four elements of the marketing mix:

• Product: What new products and/or services might Uncle Dave start to offer at his store, since—in his own words—no one buys records or CDs anymore?

• Price: Would lowering his prices help Uncle Dave? Or, for that matter, would raising them give him a slight boost?

• Place: Should he start using other channels for distribution, or positioning his products differently?

• Promotion: Are there any new IMS techniques that Uncle Dave might not be using, but should use? What target audiences may be unaware of his store and its offerings?

Answer 1

Technology is continuously changing, so moving with the trends is important to survive in the market . Now a days, most of the people no longer building music libraries with compact disc but instead they stream on internet for it. Streaming music from internet is convenient there is no need to carry Compact disc for that . Uncle Dave has not made any change in his marketing strategy or has not moved with the trend as result he found unable to survive in the market. Most of the sellers has stopped selling Compact disc in there stores as digital music continues to takeover.

Product: the best way to retain in the market is to introduce new product / services that could satisfy the present needs and trends . Uncle Dave can introduce  digital music selling or digital record shop through digital music selling distribution platform  and receive royalties in exchange so that the people can stream , and buy music  Also.provide products like USB , memory cards , pen drives and digital gadgets , sound recording equipment as well as digital audio software also head phones and other accessories .Also he could provide services like repairs of musical gadgets etc Providing online and convenient payment methods and delivery system could  add advantages to selling .

Price : Lowering price is a technique to attract the customers therefore it can help uncle Dave to an extend in his sales .During initial stage , he could provide better quality services at lowered prices so that he could retain the customers and attract more to the store. Satisfied customers are always increase the goodwill. Later Uncle Dave can increase the price depending upon the sales . To increase the profit and revenue he could increase the price a little bit more.

Place: He could sell and use the digital distribution network as it is a smart way . Through online stores he could sell his products and music. Through digital distribution ,shipping and other kinds of costs can be avoided , and can be made available to customers at a click., most convenient. Positioning of product also plays a major role in selling .He should try to keep 100% royalties .Uncle Dave can even sell both digital and his old physical (CDs) through digital distribution network .

Promotion: Promotion is a key to success. Customers have to be informed about the services available.Use all kinds of online and digital sources for promotion. Provide a platform for free , fast and fun as well as free global exposure. inform customers about their offerings through short and crisp ads . Focus on the target group and find the best way to reach out those target audience .