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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 its digital television service called 'VISION'. This service includes multiple bundles of channels catering to varying customer preferences, allowing the company to address different market segments effectively. The design of the service must comply with consumer protection legislation and involve consumers in the process to ensure that it meets their needs adequately. The branding of 'VISION' leverages familiarity to build trust and encourages brand loyalty amongst customers.
Step 2
Explain the price element of the marketing mix.
Answer
Kurve Ltd employs a penetration pricing strategy to initially attract customers by offering reduced subscription rates for the first six months. This approach helps in increasing the customer base rapidly while maintaining competitive pricing in the saturated broadband and digital TV sector. Decisions regarding pricing are crucial as they can reflect the quality of the service being offered, hence Kurve must be wary of setting prices that could undervalue the 'VISION' service.
Step 3
Explain the place element of the marketing mix.
Answer
Kurve Ltd utilizes direct selling as a distribution method, allowing customers to place orders directly online. This strategy avoids the costs associated with intermediaries and maximizes market reach. The company's online presence is integral, as consumers increasingly prefer the convenience of managing subscriptions directly from their devices. Moreover, the direct channel ensures that customers have immediate access to information about service offerings and can complete transactions effortlessly.