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Read the information supplied and answer the question which follows - Leaving Cert Business - Question 7 - 2015
Question 7
Read the information supplied and answer the question which follows. Kurve Ltd provides broadband, phone and television services to homes in the Irish market. In Ja... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the question which follows - Leaving Cert Business - Question 7 - 2015
Step 1
Explain the product element of the marketing mix.
Answer
The product offered by Kurve Ltd is the new digital television service called "VISION". This service includes various bundles of channels tailored to different customer needs. The product design must comply with consumer legislation and take into account how the service is delivered and supported. Moreover, branding plays a crucial role in distinguishing "VISION" from competitors. The brand emphasizes quality and encourages customer loyalty.
Step 2
Explain the price element of the marketing mix.
Answer
Kurve Ltd applies premium pricing along with a penetration pricing strategy for its services. The initial reduced subscription for the first six months is aimed at attracting new customers and increasing market share quickly. The pricing needs to be competitive given the intense market competition, so careful consideration must be taken to balance profitability with customer attraction.
Step 3
Explain the place element of the marketing mix.
Answer
The place element involves distributing the product effectively to reach customers. Kurve Ltd utilizes direct selling via its online platform, allowing customers to order the service directly, thus minimizing intermediary costs. This approach ensures that customers receive the service promptly and can choose their preferred distribution method, such as home delivery or online activation.