Marketing Impact of External Influences on Repositioning on Gateway Plasma TV Term Paper

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Marketing Impact of External Influences on Repositioning on Gateway Plasma Tvs

Plasma TV is ultimately becoming a feasible option to the huge picture tube and projection TV sets as the prices are gradually lowering and several types of screen sizes are there on offer. Due to this, a lot of mainstream buyers surprisingly have spent lot money to buy these units due to the convenience of wall mounting the Plasma TV which goes in well with the plush decor of the home. Gateway Plasma TVs are ultra bright Plasma televisions having a 42-inch EDTV Plasma display with a 16:9 widescreen format. (Top 10 Plasma Televisions) the pricing strategy at Gateway for its Plasma TVs has been that it is 'price player'. The company intends to sell 42-inch screen plasma TV for just below $3,000 which is hundred dollars cheaper compared to the price of its rival models. The next cheapest rival model of Gateway sells at $3,596. The price of competing models in the United States is $6,328. Gateway- a manufacturer of PCs has repositioned itself and made forays into Plasma television. After an unfortunate fall in profits, the company announced that it has made a turnaround and desires to go in for an advertisement of the fact. (Gateway Plasma TV to undercut prices)Buy full Download Microsoft Word File paper
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Term Paper on Marketing Impact of External Influences on Repositioning on Gateway Plasma TV Assignment

The company is geared towards a revamped business model that it calls 'branded integrator' which involves preparing to launch a wide array of consumer electronics products, which work in unison and share content. The sales of Gateway's $3,000 plasma TV were more than what was expected. The success achieved at the sale of its 42-inch TV made certain that is should be performing more with consumer electronics. (Gateway feels lure of consumer electronics) Given all this new technology and a lot of options in the television market, how does the consumer decide what to buy? As regards technology, Plasma TVs is an emerging technology and they are bigger in size which is 40 inches or larger. These TVs are usually brighter, have a better color saturation and cost less per inch compared to LCD TVs. In the initial years, plasma displays had problems with image burn-in; however, this problem is not a factor when the display is used as a TV. The chances for a burn-in are expected to occur when the same image like a symbol remains displayed on the screen. As television image are always in motion, burn-in will not be a cause for concern. (Should You Buy a TV From a PC Maker?)

Plasma TV is a novel and complex category of product and there are chances that consumers might not be aware of its most important issues in relation to its functionality. It has been seen that some consumers are so impressed by the aesthetics and technological appeal of a plasma TV that they do not always make fully informed buying decisions. Ownership of a Plasma TV was considered as a status symbol. The size of the screen, picture quality, the thinness of the screen for which the Plasma TVs are adored and the convenience to have it mounted on the wall constitute the key desirable features which set Plasma TVs apart and counteract probable doubts and uncertainties regarding unfamiliar technology. Some of them have practical causes for purchasing a Plasma TV, for instance that they are replacing a very old conventional picture tube TV and the time is appropriate to purchase a better TV and Plasma TV is the one for now and the future. The people taking part in a focus group comprised those who had planned to purchase a conventional TV and had been influenced to spend more by the attractive features of Plasma TV. In case of the consumers for whom the specifications of plasma drew them, the price was not a barrier from them. (Buying a Plasma TV)

On the maintenance part, a lot of them they had not understood what were involved and the manner in which they should be taking care of the plasma screen. A lot of others in these focus groups desired to own a plasma TV after they has seen its styling and specifications and did not critically consider any other technology. The focus groups found out three categories of shopper are viz. (i) Focused and Methodical and (ii) Less is more. For the 'Focused and Methodical' shoppers adopting a logical approach to the purchase, these categories of consumers look for information in a methodical manner, collecting from a range of sources. They are by far not so much excited at the point of purchase and consider the purchase of a Plasma TV as any other big-ticket purchase. For the 'Less is more' category, these respondents are inflexible that they are not in need of technical information inclusive of what they desire to consider as an indulgent purchase, something which is outside the realm of everyday, mundane reality. (Buying a Plasma TV)

External Influences on Consumer Behavior:

a) Culture: Culture is an element of external influences which impacts the consumer indicating culture represents influences which are forced on the consumer by other people. This includes a complex set of knowledge, belief, art, morals, custom, and other potentials and habits got by individuals as members of society. Knowledge and beliefs are important components. Similarly another element which is art is also a factor which influences consumer behavior. Culture possesses several important characteristics. (i) it is all-inclusive. This implies that all elements of a whole must fit together in some reasonable fashion. (ii) Culture is something that involves a gradual process of learning instead of being born with it. (iii) Culture is discernable within the boundaries of acceptable behavior. (the Psychology of Consumers -Consumer Behavior and Marketing) b) Family: Normally, two main themes in the Family Life Cycle are present, subject to important exceptions. With the increase in age, the person tends to progress in his career with the result being receiving greater income. However, certain obligations also go up. Children and meeting the household expenses forms the two major expenses. It is to be noted that although a single person might be having a lower income compared to a married couple, the single person might be able to buy more discretionary items compared to a married person. The individual members of families frequently serve diverse roles in decisions that in the end draw on shared family resources. Some people are information collectors / possessors who are in pursuit of information regarding products of relevance. These people often possess a huge amount of power as they might selectively convey information which favors their selected alternatives. Influencers do not eventually possess the power to decide among alternatives, but they might disclose their wishes by asking for specific products. The decision maker possess the power to find out issues like (i) to arrive at the decision to buy or not (ii) which product to buy- e.g. To go in for a plasma televisions or LCD television. (iii) the brand choice for buying (iv) the place from where the product is to be bought and (v) the time of buying it. It is worthwhile to note that the role of decision maker is distinct from the purchaser. As regards the marketer, this poses some problems as the purchaser can be influenced for buying at the Point of Purchase - POP through marketing efforts which cannot be targeted at the decision maker. (the Psychology of Consumers -Consumer Behavior and Marketing)

Demographic and Social Stratification: It is well-known that demographics are distinctly linked to subculture and segmentation. At this point we shall be shifting our attention from evaluating specific sub-cultures to attempt to comprehend the implications for an entire population of its constitution. A number of matters are significant in the structure of the population which influences the consumer buying behavior. For instance, in a lot of fast growing economies, a substantial proportion of the population belongs to the younger generation. In a lot of nations this stimulates economic growth while in countries which has a large ageing population this puts pressure on the society. A younger population indicates a better and increased demand for emerging technologies like a Plasma television. Since youths increasingly are inclined to use technology oriented products, a Plasma TV being a product of latest technology will find favor among the youths who will be experimenting the various attributes of the product with its price and keep the purchase involvement high.

A d) Reference Groups: As humans are social animals, people influence one another to a great extent. Reference group is a useful framework of evaluation of group influence on the individual. The term has emerged as an individual uses a reference group as a benchmark of reference with whom he compares himself. There are several forms of reference group. These are aspirational, associative, and disassociative reference groups. The aspirational reference groups are those against whom one would compare oneself. For example, the people who have not yet bought the Plasma TV but are currently… [END OF PREVIEW] . . . READ MORE

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