New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

MKT 421 Week 4 Learning Team Assignment Marketing Plan Phase III


MKT 421 Week 4 Learning Team Assignment Marketing Plan Phase III fin571

Marketplace > Kaplan University > fin571 > MKT 421 Week 4 Learning Team Assignment Marketing Plan Phase III

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

MKT 421 Week 4 Learning Team Assignment Marketing Plan Phase III
Study Guide
50 ?




Popular in

Popular in Department

This 8 page Study Guide was uploaded by an elite notetaker on Wednesday November 11, 2015. The Study Guide belongs to fin571 at Kaplan University taught by in Fall 2015. Since its upload, it has received 45 views.

Similar to fin571 at Kaplan University


Reviews for MKT 421 Week 4 Learning Team Assignment Marketing Plan Phase III


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 11/11/15
MARKETING PLAN PHASE III          1 Marketing Plan Phase III Team MKT/421 Instructor April 11, 2011 MARKETING PLAN PHASE III      2 Marketing Plan Phase III Effective marketing strategies are essential in the launch of a new product.  Without an  effective marketing strategy, a company may have the best product in the world, but be unable to sell it to consumers.  The intent of this paper is to identify the components of what makes a  marketing strategy effective, and how to distribute the product into the hands of the consumer by using the marketing mix. Marketing Mix The marketing mix is made of the four P’s: product, price, place, and promotion. These  elements are planned and adjusted until the right mix is achieved, which is to serve the needs of  the consumer while generating the most favorable income (WebFinance, Inc., 2011). Product Best Buy has developed the new product called the Universal Smartphone, and will  provide contract carrier service for the new line of phones. The new flagship phone features a  candy bar design, which makes its light weight and easy to carry in one’s pocket. The new phone line is built on a new magnesium frame with a screen constructed of a product called Gorilla  Glass, which makes the phone virtually indestructible. The frame is enhanced with Chameleon  technology that allows the phone to change colors based on the temperature of the user, much  like a mood ring.  The touch screen permits the user easy access to a full keyboard as well as an  endless variety of applications, which can be downloaded to any phone to give the user his or her own personal Universal Smartphone.  The new phone has a more advanced OS (operating system) than its closest competitor  and will be called “Universal OS.” The phone has blue tooth and wifi capabilities, plus the  option of integrating with all laptops that feature VM Ware application that allows the user  remote control access to all Windows, Apple, and Droid OS devices. Other new features include  MARKETING PLAN PHASE III      3 office applications such as Open Office, RDP (remote desktop), and with Universal Plus, IT  customers will have access to server and data center monitoring and control. Best Buy will be the service provider for the new Universal Smartphone line and will  carrier its own service plans. The contracts will be a standard two­year contract, with the option  of upgrading at 18 months. Best Buy will provide a wide selection of plans to choose from to  meet the needs of all consumers, including the teen, the family unit, an organization, and even  the corporate executive.  In addition, Best Buy will provide data packages at lower rates than the  leading competitors.  Price Many pricing strategies are used by both manufacturers of cell phones and by  distributors.  According to PC World (1998­2011), the average consumer spends seventy six  dollars for a new phone but smartphones typically run around one hundred ninety nine dollars.  Most distributors such as Best Buy offer options, such as buying a phone new without a contract  at full price, while also allowing a discounted phone with a new or renewed contract.  For the  Universal line of phones offered by Best Buy, the company will stay with this model and offer  new phones without a contract for five hundred ninety nine dollars, or a new phone with a two  year contract for two hundred ninety nine dollars. The profit for Best Buy will not be in the sale of the phone itself, but rather in the  contracts created by its users. These are long­term contracts that average 2 years at an average of  seventy five dollars a month, or one thousand eight hundred dollars over the life of a two year  contract (Chan, 2009).  Best Buy will market the available data packages to the same extent as it  does the phone. For Best Buy, the phone will be the avenue in which the customer will commit  to a 24­month data plan. Unlike other carriers of cell phones and data packages, Best Buy will  offer significant discounts when customers switch from another carrier and phone to the  MARKETING PLAN PHASE III      4 Universal line of devices. When a consumer brings in an existing contract with another carrier  and the phone purchased through that carrier Best Buy will offer a 10% discount on a new phone and data plan upon exchange. Place For Best Buy, the best channels of distribution will be direct­ from the manufacturer to  Best Buy’s warehouse and distributed using channels already available. Recreating channels that  already exist would be time consuming, costly, and ineffective.  This reduces the total cost and  increases the margin for the Universal smartphone. There will be no significant increase in  overhead to incorporate the phone into each store’s shelves. Availability will start with the  current store locations and Best Buy Mobil kiosks in shopping malls.  The production costs for the Universal Smartphone will be similar to the costs for Apple’s  iPhone consisting of: total materials $172.46, Manufacturing costs 6.50, grand total of $178.96  (Xing, 2011). It has been suggested that Apple manufacture it’s iPhone in China to maximize its  profit margins of 62­65% (Xing, 2011). However, even if Apple chooses to continue to  manufacture the iPhone in the United States, it still would make a profit margin of over 50%, and it may be considered socially responsible by consumers.  The markup for the universal will be 50%+ with the suggested selling price five hundred  ninety nine dollars. This gives Best Buy the chance to increase the perceived value of the phone.  Producing the phone in the USA and using “tough” materials in the case of the phone will make  the phone more durable in the minds of the consumer. Improving the consumer’s opinion of the  Universal Smartphone ultimately increases the value of the phone. Pace The pace of the life cycle of the Universal OS will move more quickly through the  introductory stage and market growth because of the technology advancements in the operating  MARKETING PLAN PHASE III      5 system, the chameleon enhancement, and the durability in using a magnesium frame and gorilla  glass.  According to Perreault, Cannon, and McCarthy (2009, p. 265), “the greater the  comparative advantage of a new product over those already on the market, the more rapidly its  sales will grow.”  The new features in the Universal OS will provide the same advantage.  The  Universal OS will enter the market maturity a short time after the growth stage, because it will  become outdated from the introduction of newer, more advanced technology in the Smartphone  industry as compared to others currently on the market.  The price strategy used for the Universal OS will be another factor in the length of time it is in the market maturity stage before eventually going into the final stage of sales decline because of outdated technology.  The product life cycle of a Universal OS will move quickly through all stages of the product life cycle because it will  be affected by the rapid changes in technology in the Smartphone industry to satisfy the  consumer’s needs in the fast paced world of globalization in the business environment.   Conclusion Finding the correct marketing mix is essential to the successful launch of the new  Universal Smartphone and Universal OS.  Finding the right method properly to use the four P’s  in the marketing mix, product, price, place, and promotion can make or break the process in  which the Universal will be introduced to the public.  A great deal of thought and planning has  gone into the development and launch of the new Universal Smartphone and the Universal OS.   A marketing strategy must be well thought out to be successful.  Best buy must offer the best  product for the best price, to the right target groups, and market them effectively.  By following  the ideas set out in this paper, Best Buy has the opportunity to capture a large market share of the Smartphone market, and by using its own OS can have the potential to generate a large amount  of income.   MARKETING PLAN PHASE III      6 MARKETING PLAN PHASE III      7 References  Chan, C. (2009, October 29). Total Cost of Ownership for Motorola DROID on Verizon [Msg.  1]. Message posted to­cost­ownership­motorola­ droid­verizon  PC World, We’re Holding On to Our Cell Phones Longer Than Ever. Retrieved from: nger_than_ever.html Perreault, W. D., Cannon, J. P., & McCarthy, E. J., Jr. (2009). Basic marketing: A marketing  strategy planning approach (17th ed.). New York, NY: McGraw Hill. WebFinance, Inc.. (2011). Retrieved from­mix.html Xing, Y. (2011, April 9). How the iPhone Widens the U.S. Trade Deficit with China. Message  posted to­how­the­iphone­widens­the­u­s­trade­deficit­ with­china MARKETING PLAN PHASE III      8


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.