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.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

Answer:The products or services which are introduced need to be decided on the basis of market intelligence. The store can be converted into a coffee shop offering music by creating a unique atmosphere where customers can enjoy the live music, browse through the music and also listen to their favorites played for them, while they enjoy their favorite coffee. It is essential that the uniqueness factor which would be relevant for the target audience be created for example a karaoke machine for the young generation or encouraging customers to just do their thing with impromptu performances. The musical products offered should include the option of the latest storage devices but focus more upon creating a unique atmosphere of a musical Cafe with playing out of specific musical themes which the target audience are likely to identify with and want to participate in. The uniqueness factor is important as it is what will create differentiation and provide a competitive advantage to the business.

Explanation: The price should be raised as the product and service is to have a feel of uniqueness which is not so difficult to obtain at another place as it is not easily imitable and also as the uniqueness factor provides exceptional perceived value for the customer within the product. A unique product needs to maintain some exclusiveness adequate value to be perceived by the customer so it needs to be priced at a premium. The price chart is more for the uniqueness which is created and the unavailability of similar options.