In this article, you will learn about marketing strategies and techniques that are used by big companies.
In this specific example, we are going to be using Uber to show you the most worthwhile marketing strategies and techniques that can work for your business.
These articles will look at some of the marketing mixes that Uber needs to improve. Secondly, the essay will cover some of the strategies that start-ups need to have in their operation. Finally, the article will determine why personal selling is an effective marketing technique.
Marketing Mix and Uber
As we all know, Uber is one of the biggest platforms that connect customers to drivers. The creation of this platform made it easier for customers to travel easily from one destination to another. Just by sending a single message or call, a driver will be on his/her way to get the customers. However, the journey to the top has not been as smooth as expected. Uber has faced numerous issues in its operations which have cost the company millions in profit. Most of these problems have arisen from its poorly developed marketing mix. These elements are comprised of seven parts which are product, place, promotion, physical evidence, process, price, and people.
In the physical evidence part, Uber does not have any assets that it can call it’s own. It relies on independent drivers and parties. This is reducing the overall profits of the company since it has to share with multiple partners. The company should invest more in its resources. In the promotion mix, Uber has not done enough to advertise itself. Most of its marketing campaign is done online and on the internet-enabled applications. Uber should devise a way to reach out to consumers who do not own Smartphones. When it comes to the process section, Uber has a lot of requirements that tend to discourage potential investors. The prices charged by the company are also quite high. This may end up discouraging consumers who may shift to other cab-hailing platforms. The company should also diversify its services rather than relying on a single product.
The Must-Have Strategies for a Start-Up
Firstly, each manager should ensure that he/she has a well-developed marketing strategy for their company. This approach plays an important role in connecting customers to the business. The strategy, therefore, needs to be thorough so as to reach out to a greater audience. As stated earlier, Uber has completely failed in this area since its marketing strategies are not wide enough. Uber’s ads are only tailored to attract online users. The platform also requires internet connectivity so as to communicate with drivers. Uber should embrace text messaging ads so as to reach out to those people that do have Internet-enabled phones.
It is important for firms to have a diversification strategy. The approach can enable the business to grow significantly. It is important to compare the actual performance and the projected costs so as to determine if the business is performing well. Start-ups should ensure that they also have a cost-effective plan. A lot of start-ups face significant costs mainly because they do not have a strategy to address some of the issues. Overspending in one section may cause the performance of the business to rely on that area which is not good for business. Conflict resolution strategies should be put in place so as to maintain healthy relationships with managers, employees, suppliers, and customers. Entrepreneurs should incorporate technology into their operations so as to increase efficiency and drive down costs.
Why Personal Selling is the Most Effective Marketing Technique
Personal selling involves engaging with customers directly and convincing them to use your product or service. Uber does not use this type of marketing simply because they do not own any service or product. Personal selling is effective because it enables marketers to interact more with their customers. This can allow them to address their needs and wants effectively which can increase the level of satisfaction. Scholars claim that this form of marketing is critical when dealing with complex items. Through personal selling, customers are taught how to use the product or service. Marketers can use their selling skills to convince customers into purchasing the product/service.
The power of persuasion can assist to deal with various objections that may be raised by consumers. Companies that use this marketing technique have managed to create long and sustainable relationships with their customers. By conducting after-sales service, marketers can demonstrate that their company values customers and is willing to provide quality services to them. This form of marketing can also assist in managing the sales cycle. Consumers might be willing to accept products from the company when they are delivered to them in the next round. The two-way communication method present in this system ensures that all customers’ issues are addressed effectively. Finally, personal selling can allow companies to reach out to remote areas where they were unable to access before with the other marketing methods.