Week 3: Remix

(1) Consider a restaurant in Sturt Street Ballarat. On the discussion page write down all the offline marketing activities you can think of and then start a separate list and write down all the online activities you can think of.
When looking at restaurants in Sturt Street the only main restaurant which I can remember is La Porchetta. La Porchetta is a large chain which can be found in different parts of Australia. When looking at the offline marketing activities of La Porchetta there are a few different methods La Porchetta has used to spread recognition of the brand.

Offline marketing:
· Television advertisement
· Radio advertisement
· Newspaper adverts
· Coupons
· Signs
· Word of mouth

Online marketing:
· Website
· Restaurant websites
· Social websites such as facebook become a fan.

What if, any were the different in the lists?
The differences are basically how they advertise using different methods. By using television, radio and newspaper advertising this is similar to using the internet it is just a different type of method to get recognition. The website gives a lot of information about the restaurant and allows consumers to check out information which relates to their needs. Adverts such as the radio and television refer to viewing the website which brings a link to online and offline marketing.

(2) Consider two other products/services of your choice. Write down all the offline/online marketing possibilities you can think of.
When considering two different products or services I have chosen two services. The two services are Hepburn spas and Subway. These two services are different in which one is a fast food chain and the other is a relaxing spa resort. By having two different services this should demonstrate a few similarities and differences of online and offline marketing.

Hepburn Spas:

Online marketing:
· Hepburn Spas has a website which describes all the different treatments which consumers can have when going to the resort. This online marketing details how much each treatment costs and where the spa is located.
· Online advertisement would be a connection with the location such as when going to Daylesford what you can do.

Offline Marketing:
· Brochures
· Tv adverts
· Radio adverts
· Newspaper adverts
· Magazines
· Tv specials such as Getaway and travel type of shows.
· Word of mouth

Subway:
Online marketing:
· Subway has an official website which states their locations, menu, frachises and trading hours.
· Online competitions
· Restaurant information such as when googling locations and places to eat.

Offline marketing:
· Tv adverts
· Radio adverts
· Coupons
· Newspaper adverts
· Magazine adverts
· Billboards
· Location signs

(3) What makes a great online product from a marketers point of view? How would you measure success?
A great online product in a marketers view would be a product which can be sold. An example of a tough online product to sell would be space. Consumers can not touch it or even use it for different things. A great online product would be something which a consumer can see and decide whether they want the product or not. Even a service can be good to sell such as a holiday which can be demonstrated through pictures and moving description of the destination. A good product to sell online would be something which consumers want or can be influenced to want. In my opinion success would be measured through how many hits the website has had. For example marketers can measure how many people have been on the website which would be a good indication to whether the website is being viewed. Another way to measure success would be increase in sales after introducing the online presence.

(4) Preview the pricing of two products and consider some dynamic pricing models.
Going with the same theme of Hepburn Spa and Subway there are different pricing models which can be used to price products.
According to Sadhana there are five different pricing models. Which are:
· Inventory based model
· Data driven models
· Machine learning models
· Game theory model
· Simulation model.
Looking at Subway and their rolls costing on average of $6 for a 6inch sub this is an example of inventory based model because Subway dispels coupons for cheaper subs to bring in more sales. This demonstrates product sales and customer sales. Hepburn Spas on the other hand ideally is the same model but is different in the sense that their pricing is not a flexible pricing strategy but a customised. Hepburn Spas are customised pricing which means they have a particular price such as a treatment package can range from $140. This differs from Subway which is flexible and constantly changing to suit consumers such as through coupons (Sadhana, 2005).

(5) What are some of the issues these (pricing) models raise?
Some of the issues which these models raise are what if the product does not fit these certain categories? These five models are broad but do not cover all aspects of business decisions on pricing. Products being flexible and customised priced can also change because of consumer demand. Also the demand and supply can change which changes the pricing of products. If products/services do to make money they the business will also lose money.


References:

La Porchetta.(2005). La Porchetta Restaurant. Retrieved August 16, 2009 from: http://www.laporchetta.com.au/home/

Hepburn Spas.(2009). Hepburn Spas. Retrieved August 15, 2009 from: http://www.hepburnspa.com.au/hepburn_spa_australia.html

Subway.(2009). Subway Restaurants. Retrieved August 15, 2009 from: http://www.subway.com.au/content.asp

Sadhana.(2005). Dynamic pricing models for electronic business. Retrieved on August 15, 2009 from: http://www.ias.ac.in/sadhana/Pdf2005AprJun/Pe1337.pdf