Marketing Communications and Brand Strategies – Intel Corporation Mobile Products – China/United States

Assignment StepsDevelop a minimum 700-word branding strategy and marketing communications plan in Microsoft® Word.
This document should address at least five (5) elements of the
Situational Analysis and the Product, Place/Distribution, Promotion, and
Pricing Strategies (modified below) sections of the marketing plan
(from the Situational Analysis and the Product, Place/Distribution,
Promotion, and Price Strategies lists below). The five elements you
select should only come from the options provided below. You must
include a measurement of customer loyalty and retention in your
strategy document. You may include more than the minimum to provide
clarity and coherence to your document. Be sure to address your domestic
and international markets for each element. Remember to address the US
and your foreign market in these sections.Situational Analysis:Vision, Mission, Strategic objectives, ValuesStrengths/WeaknessesCompetitor’s Strengths/WeaknessesMarket SegmentsProduct, Place/Distribution, Promotion, and Price Strategies:Creating a Brand ImageMaintaining Brand ImageBranding ConcernsPromotion/Integrated Marketing CommunicationsAdvertising Strategy/Objectives Push and Pull StrategiesMedia StrategyAdvertising ExecutionPublic Relations/StrategiesNote: Charts/graphs/tables do not count toward the word count.The plan will be a continuation of your global or multi-regional
business you chose in Week 1. This will be incorporated into your
overall marketing plan for Week 6.Cite a minimum of six peer-reviewed references as
well as others. Be sure to leverage your learning from this course by
defining/discussing marketing concepts/principles related to this week’s
assignment.Format your assignment consistent with APA guidelines.
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Running head: PRICING AND CHANNEL STRATEGIES
Pricing and Channel Strategies
Institution Affiliation
Date
1
PRICING AND CHANNEL STRATEGIES
Introduction
Distribution and pricing strategies are important to the wellbeing of companies.
Companies should, therefore, ensure that they come up with strategies that suit their needs as
well as those of their customers. These strategies should thus be those that enable the
companies to maximise their profits and at the same time those that please their potential
customers (Hollensen, 2015). Due to the fact that Intel Corporation performs differently in
America and China, it is important that suitable strategies be used in these two countries.
Distribution Strategies
Distribution of products is important to a company as it helps it to earn revenue. It is
important that companies ensure that they avail their products to consumers at the right place
and time. Failure to do this will make the company not only look incompetent but also make
losses (Ding, 2017). Currently what happens in China is that various channels are used to
distribute the products of Intel Corporation. The indirect distribution strategy is thus the one
that is used. The products are therefore distributed to whole sellers then, to retailers. This has
caused their prices to be high and therefore enhanced the competition it faces from other
companies in China.
The plan is, therefore, to change the distribution strategy for Intel Corporation in
China to direct distribution. There are several advantages that come with distributing
products directly. These include having control of the product, cutting costs that come with
using various channels to distribute the product, being in direct contact with the customers
and as a result being in a position to identify their needs and address their grievances (Ding,
2017). Direct distribution will ensure that Intel products remain at low prices. The stiff
competition it faces in China from companies such as Samsung will, therefore, be able to be
inhibited as Intel could use its low prices as a competitive advantage.
2
PRICING AND CHANNEL STRATEGIES
In America, the indirect distribution strategy is used. There are therefore various
selected outlets in which the products of Intel Corporation can be purchased by many
interested consumers. However, with time, the number of interested customers has increased
and therefore the selective distribution strategy is becoming disadvantageous as fewer people
are accessing the products as compared to the number of people that are interested in Intel
products. This distribution strategy will, therefore, be changed to mass distribution. Mass
distribution will ensure that every single person who is interested in the Intel products is
going to be in a position to access them. As a result, Intel will be able to increase its market
share and revenue (Ding, 2017). It will also be able to meet all its customers’ needs.
Pricing Strategies
Currently, the pricing strategy that is used in the United States and China is the
dynamic price strategy. This form of pricing strategy comes with various advantages. These
are the fact that Intel Corporation is able to maximise the profits they make from each
customer as well as to effectively cater for the costs and labor involved (Rapaccini, 2015).
This pricing strategy is not going to be changed in the United States. However, some changes
are being considered in China. This is because, in China, Intel Corporation has not gained a
reliable customer base and as such the dynamic pricing strategy is not a reliable one. The plan
is, therefore, to use the static pricing strategy in China. This pricing strategy will give clients
assurance and help them know the tentative amount they are likely to spend in purchasing
Intel’s products. Intel Corporation China is also likely to avoid offending customers by
fluctuating prices. This strategy will be helpful in attracting customers to the company.
Other pricing strategies that are used in pricing in the United States, for instance, is
the premium pricing. Since Intel Corporation has been successful in making their customers
perceive the high value of their products, this pricing strategy is working quite well in the
3
PRICING AND CHANNEL STRATEGIES
United States and as such it will remain unchanged. In China, however, this pricing strategy
cannot be effective due to the unstable customer base. The plan is, therefore, to use the
market penetration pricing strategy to lure potential customers to Intel Corporation (Kienzler,
& Kowalkowski, 2017). The relatively low prices will enable the company to attract attention
and consequently establish a stable customer base. Intel Corporation China will thus be able
to stand out in relation to its competitors because of using this pricing strategy.
Conclusion
Intel Corporation plans to use the direct distribution strategy in China in a quest to
lower the prices of its products so that it can be more appealing to potential customers. Low
prices could make Intel Corporation stand out from its competitors. The market penetration
strategy will also be an effective pricing strategy considering the fact that Intel Corporation
has not established a stable customer market in China. These pricing and distribution
strategies are intended to ensure that Intel Corporation China is successful in its endeavors.
4
PRICING AND CHANNEL STRATEGIES
References
Ding, X. (2017). Modeling and Quantitative Analysis of the Impact of Direct vs. Indirect
Distribution in the Performance of a Supply Network. Management & Engineering,
(27), 45.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Kienzler, M., & Kowalkowski, C. (2017). Pricing strategy: A review of 22years of marketing
research. Journal of Business Research, 78, 101-110.
Rapaccini, M. (2015). Pricing strategies of service offerings in manufacturing companies: a
literature review and empirical investigation. Production Planning & Control, 26(1415), 1247-1263.
5

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