Marketing Smoke Out Essay

Many products have been sold in the market offering to stop a smoker from smoking. However, many of these products have failed. The main reason is that the body has been addicted to nicotine. Thus, the body craves for a stick and a stick and a stick and a stick and so on and so forth of cigarette to quench the body’s desire for the deadly nicotine. The following paragraphs explains how the new product Smoke out will finally fill the smokers’ desire to stop their smoking habit dead in its tracks. a. What is the product name? Describe the product. 2 pts. The new product is   smoke out. The product looks like a real cigarette stick. At one end of the cigarette has drawn to look like it has been lighted. And, at the other is a cigarette butt that feels like the real cigarette but. The cigarette butt which enters the smokers’ mouth has been filled with medicine. This medicine tastes and smells like a real cigarette smoke. However, The best advantage about this cigarette is that the smoker does not cut his habit of smoking entirely. For, he continues to smoke the smoke out in order to comply with his habit of smoking. Only, this time, a non smoking medicine is swallowed by the cigarette and cigar smokes that smells and tastes like smoke but the medicine actually mixes with the smoker’s blood and neutralizes the nicotine that is already in the smokers’ body. For, nicotine is an addictive chemical that sparks the human body’s craving to smoke another cigar or cigarette. For, many people have developed this smo king habit many years back. And they feel that stopping the smoking habit is a gargantuan task (Michman, Mazze & Greco, 2003, p. 1). B1. Explain how you are segmenting the market. 5 pts. The market segment is the smoking public. This segment includes people who smoke from the earliest possible age to the oldest possible age. Also, this segment includes all the male and female genders. Likewise, this segment includes all smokers in the all economic classes. Meaning the poor, the rich, the averagely rich and the extremely rich and buy this new product out in the market called Smoke out. In addition, this product will be sold to people of all religions. This product will zoom in to the African American customers, the White Americans, the Americans of European descent, the Americans of East Asian descent, the Americans of East. Likewise, the market segment will include the Mexicans, the Canadians, the South American descent. The above segment will be implemented in order not be branded as a discriminator of customers. This segment will first be test piloted in the Los Angeles, California area in January of 2008. This will continue until March of 2008. Next, the second phase of the product launch of Smoke out the product will be launched in June of 2008 if the test here will produce enough profits to merit continuing to the next phase. However, if the results of the first phase in Los Angeles California will not be successful because the sales generated will not exceed the total amount of marketing expenses, the administration expenses and the cost of raw materials, direct labor and factory overhead in producing the Smoke out product (Michman, Mazze & Greco, 2003, p. 1). B2. Why did you choose this method of customer segmentation? Be specific. 2 pts. This market segmentation give the best results at lesser expenses. For, the company’s selling only in the Los Angeles market is similar to injecting a new drug into rats as guinea pigs to determine if the drug will cure cancer or eliminate diabetes. This is the first phase of the market segmentation in the drug manufacturing and selling business. And, this phase one will now move on to phase two of the experimentation if the drug test shows that the drugs will be cure the cancer   or diabetes in the rats. However, the drug testing will not continue to phase two of the medical experimentation if the drug does not cure the cancer or diabetes. Obviously, phase two will continue if the drug shows that the drug can cure cancer and diabetes in rats. The phase of this drug experiment is injecting the cancer and or diabetes   -curing drug on humans who have cancers and diabetes (Michman, Mazze & Greco, 2003, p. 24). Thus, the phase two will no push through if the Los Angeles, California test pilot segment will show that people abhor the product and the costs and expenses to produce the Smoke out will be higher than the revenues generated from selling the smoking habit buster product. For, there is a very high probability that this smoke busting product will not generate net profits if the Smoke out product will not generate net profits in the Los Angeles test pilot area within the three month test period (Michman, Mazze & Greco, 2003, p. 53). c. Who is the target market? The target market, which is phase 1 (Los Angeles, California) has been chosen because it mimics many states within the United States. Thus, whatever will be the financial findings in this test pilot area will give a high probability of what will happen when the product is finally launch all over the United States and all countries around the world. Meaning, California has people in the fire hazardous forests. Los Angeles is the home to the rich where Rodeo Drive located and the Beverly Hills area where the rich take up their residences. It also has its share of poor people living in †¦..  Ã‚  Ã‚   It also has its share of the lesbians and gays. Los Angeles has its share of Asians, African Americans, Europeans, South Americans and other races. It has also different religions inside its boundary. It has also both males and females resembling the gender population of other states. It has its own share of smokers just like the smoking population of the other states within the Unit ed States (Moschis, 1994, p. 6). For Los Angeles   represents the very best of America which includes Beverly Hills and Malibu and the Worst of America. The worst of Los Angeles includes the gang wars and day to day violence in the streets. Also, the Los Angeles population is most populated by African Americans, Latinos and native Americans since 1781. Los Angeles is well known for its beautiful weather most of the year. The cost of living here is also high but not too high for the average wage American (Collier, 2002). Thus, the success of Smoke out in Los Angeles will have a high probability of being a success when it is marketed to the entire United States segment (Moschis, 1994, p. 10). d. What are your products’ benefits to the target market? 4 pts. The product will give the smoker the feeling that he is smoking. Thus the does not literally cut his smoking habit. What happens is that the medicine fused into the Smoke out will slowly neutralize the nicotine that has been piled up for many years in the smokers’ blood and lungs. The smokers will lose their crave for smoking without even a sweat because it is the medicine that neutralizes the body’s craving for addiction for nicotine (Moschis, 1994, p. 90). e. At what price will your product be introduced? Why? 4 pts. The price will be $100. This price is based on the simple reason that a person’s health cannot be equated to cash. For a person’s life is priceless. Also, the cost of the Smoke Out Is surely lesser than if the smoker will be operated in the hospital for lung cancer and high blood which is one of the side effects of smoking for many years (Moschis, 1994, p. 123). f. What pricing strategy are you using? Why? 4 pts. The pricing strategy used is the cost plus profit pricing. For, a business has to generate revenues that will exceed the total amount of costs and daily operating expenses of marketing the Smoke out product (Abdallah, 2004, p. 48). g. What objectives will be accomplished by using this strategy? Be specific. 5 pts. The objectives that will be accomplished by this strategy are: – To know if the people will buy the product. – To know if enough people will buy the product so that the revenues from sales will  be more than the total costs and expenses of producing and marketing the Smoke out  product launch. – To generate findings from a test pilot launch so that results will be known at a earlier  stage of the product life cycle (Moschis, 1994, p. 93). h. Why is the product worth this price? 2 pts. As discussed above, a person’s life cannot be equated to money for it is priceless. Thus, the $100 selling price of the product will not be noticed when the product is marketed as best   product to stop smoking without even trying. i. Identify and explain what prices you should charge at each stage of the PLC? 12 pts. I will use the same $100 selling price at each stage of the product life cycle. The reason is plain and simple. A person’s life is worth more than $1,000,000 and $100 is just   a trickle from a person’s monthly salary. Thus, if the product will be bought with price of $100 which is very very very low and affordable.