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Marketing Strategies of Nintendo

Autor:   •  April 2, 2018  •  3,526 Words (15 Pages)  •  354 Views

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Marketing Strategies

After Peter Ducker came with the marketing concept, there was need of several strategies. Dibb, Simkin, Pride and Ferrell simply defined that ‘a marketing strategy is putting organizational goals into a plan’. A marketing strategy explains an arrangement for the best utilization of its recourses to reach its destinations. Along these lines, marketing strategy can't be plan in detachment. It needs to mirror the marketing goals of the organization (Fifield, 2007).

In relate to Nintendo, company is adopting various types of marketing strategies such as tactical planning strategies; marketing mix, Target marketing strategies; segmentation, targeting and positioning and so on. This report will go into detail on how it has been analyze, formulate and implement marketing strategies to achieve its objectives.

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Marketing Mix

Marketing mix is the answer for the question, ‘how can we serve our products to the target customer?’ Marketing mix is the strategy to add value to customers.

Boone and Kurtz (2013) defined that, Marketing mix is the blending the four strategy elements of marketing decision marketing- products, pricing, distribution and promotion to satisfy chosen consumer segments.

- the right product

- sold at the right price

- in the right place

- Using the most suitable promotion

Traditionally the marketing mix consisted Product, Price, place and Promotion. In 21st era, marketing has become more customers centered than ever before. With the revolution of the service sector of the economy, in addition to the traditional four Ps, it has become 7Ps, people, process and physical evidence to the mix. (Richter, 2012) Every business should be pay attention to have a clear knowledge about their marketing mix. The marketing mix is that it allows companies to sell its products and services effectively in the selected places while helping company to achieve its targets and it’s directly have an effect on buying decision process of customer. A successful marketing mix is a most important thing that favours to be a successful organisation. In this report, marketing mix of the Nintendo going be discussed.

- Product

The item itself is the most critical component in the mix. It is the foundation for other three. Product means goods, services or ideas designed for the customer requirement. Strategies are needed for managing existing products, developing new products, packaging, product life cycle and so on. Product is the main body, helps the organization to build their own identity. (Kotler and Armstrong, 2015)

Nintendo has mainly focused on manufacturing game consoles, core product of the company which is the basic reason for customers to buy Nintendo. Nintendo 64, 3DS, Gameboy, Gameboy color, Wii, GameCube, SNES are Nintendo’s high quality products comes to consumer in an exciting different ways. Lately company tended to go to customer with their game products such as world famous Mario, Pokémon, and Starfox. (Nintendo, 2015)

As a marketing oriented organization, Nintendo is very aware of proving their products at reliable safety standards. In modern business to deal with challenges, standards are very important strategic instrument. They ensure that business operations are as efficient as possible, increase productivity. Nintendo’s’ target market is mostly families. Especially UK consumers are more aware of safely standards. This will advantage the consumer wanting to be exceptionally dependable amid the client's utilization in light of the fact that its assists the business with keeping so as to increase its deals the current clients and draw in potential ones. All Nintendo products are producing at the convenience production facility which is accredited with the TCR (Technical Requirements Checklist) certification (Kenwright, 2014).

Nintendo can be defining as an innovator. It often does marketing research and trying to develop new product. As a result of research and development, the major innovation taken place in 2012 for the Nintendo brand is the “Wii U” product (Figure 1). It’s one of latest innovations in the industry and can be called as a novel product which is much more interactive with a handheld touch screen, improved ability to supplement to various media with High Definition. This amazing Nintendo’s’ innovation made non-gamers to play video games. (Nunneley, 2012)

Figure 01:

[pic 6]

Source: (Nintendo.com, 2015)

In a comparison to Nintendo’s’ major competitor Sony’s play station which was launched at the same time as Nintendo’s 3Ds, could not able to compete in the UK market with Nintendo because of the new technology has been used by company. (Gamefaqs.com, 2015) However, there is a common pattern when looking at Nintendo’s product life cycle. All Nintendo products are reaching maturity level very quickly, but reaching its decline level faster than reaching maturity level. This might be happen because of the day to day changing technology. Nevertheless Nintendo recognized this issue and redesigned control system and added more applications to their recent products. (GamesIndustry.biz, 2015)

- Price

Price is the amount of money that the consumer has to pay to obtain the product. While all other elements are making cost for organization, price is the only element creates sales revenue. Strategic decisions must be made regarding competitor price, total cost of product, promotional cost, distribution cost and so on. (Kotler and Armstrong, 2015)

Like every organization Nintendo cared about several areas when formulating the pricing strategy such as competitors price, policies are in the UK when pricing, Company breakeven point and cost. Nintendo is adopting several pricing strategies. Nintendo introduced ‘Wii’ with price skimming strategy which means setting a high price for their innovative product and with the time they moved into market penetration strategy by setting low price so as to enter the market quickly while producing larger volume of sales (Smith, 2012). As a result of that Nintendo was able to beat their major competitor Sony PS3 while becoming lowest price leader. This shows Nintendo is using cost leadership pricing strategy among strategies of

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