Introduction The objective of this discussion document is to find out the tools for strategic marketing strategy for Wholesale Electrical Industry. The purpose is to define Porters Model, PEST analysis; direct response marketing strategies and customer retain strategies relating to the small business. Below mentioned parts are discussed in the discussion document:
Porters Five Force Model- This model defines five competition forces that emerges in every industry. Small business should be aware of these forces so as to have higher positions in the market.
Competition in the industry: Small business must be aware about the number of competitors in their market and they should know about their business.
Threat of new entry: New entry should be restricted so that it should not have any impact over our small business.
Buyer Power: Customer should remain in touch with the business and should not move to the competitor. For it, business can use various marketing strategies.
Supplier Power: Switching costs to move from one supplier to second should be low, and then we can easily change the supplier.
Threat of Substitutes: Substitutes of product in the industry should be less, and then it will be strength for the business.
PEST analysis- In the discussion document, we are analysing the PEST which means Political, Economic, social and technological influences that can affect the performance of the business. Political factors cover the type of government that is running in New Zealand. Economic includes exchange rates and interest rates that are having influence over the business. Social factors cover age groups, demographics, lifestyle that influences the whole electrical industry. Technology relates to the latest technology that is going on the market. Business should use latest technology so that sales can be increased.
Marketing Strategies-To increase the sale of the small business, various marketing strategies are used by the small business such as offensive strategy, obtaining new customers, increasing customer satisfaction. Offensive strategy is the strategy used for the competitor to push him back so that its sales can be decreased and our business should grow. Business should plan to gain new customers by building relations with the loyal customers. In addition to it, increasing customer satisfaction will help the business to increase sales and can increase faith of the customer in the business.
Customer Retaining Strategy- In retaining the customers, small business uses the strategy such as product bundling, cross selling and loyalty programmes. In the discussion document, we are using product bundling which means offering two to three products in adding to the product. It will help the electrical business to increase sales and it will help in retaining the customer. Cross selling is another customer retain strategy in which with the same product, electrical business encourages and influences the customer to buy another product. Loyalty programme helps the small business such as electrical wholesale business to keep the customer and build its interest in our business.