What is Keast’s Decision Problem?
Keast’s decision problem is what marketing mix should he follow? This includes the advertisements to be used, media to be followed and other marketing techniques that could be followed. Also a decision on how to reduce losses being made needs to be arrived at. One option was to decrease the price per set from $999 to $399 and thereby increasing volumes.
Based on the marketing plan towards the end of the case, what strategy do you see in the marketing mix proposed? Is there an alternative to marketing mix planned for the year 2000?
The marketing mix is a combination of print and television media. The strategy is based on the following 3 aspects: Product: Bundling TiVo with DirecTV to counter the DirecTV-Microsoft product is an option. Price: Reducing the price of the set from $999 to $399. Another option being considered was to stop production of the 14 hrs sets and distributing the existing inventory free. This would increase the customer base. Communications: Using different media for campaigning. This would be a mix of TV and print media and using the TiVo.com website. A no. of print and TV Ads are being considered. TV Ads would introduce the notion of a personal TV to the audience and raise a brand identity and, curiosity for TiVo. Print Ads would focus on the details of the product and its features. The website would give a deeper educational experience of the product and services.
While TiVo is marketing its product as equipment with which one can decide on what to see, skip the advertisements and also making the job of a network executive irrelevant, its competitors are only focusing on their product’s amazing features without resorting to controversial advertising. So, this is an alternative available to TiVo.
What do you advice Mr. Keast?
The marketing mix being proposed is impressive and effective. However, few main problems with marketing TiVo are non-availability of a...
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