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Introduction Services such as wireless Internet service present a unique marketing challenge for organizations Any service has four main characteristics that companies must address in their promotion and pricing plans intangibility inseparability variability and perishability This plan uses a pricing and promotion strategy that adjusts the controllable factors of the wireless service to cope with and even exploit an uncontrollable environment Price and promotion are essential components of an effective marketing strategy and are an integral part of the marketing mix The goal of promotion is to affect behavior which can take the form of informing persuading and reinforcement Griffith 2004 Promotion builds customer awareness and communicates information to potential customers to influence their attitudes or behavior Perreault-McCarthy 2002 The strategies presented herein address the pricing and promotional initiatives necessary to deploy an effective marketing campaign for McDonalds wireless Internet service offering Pricing Strategy Pricing is a crucial part of the marketing mix The obvious pricing benchmark for the McCaf wireless service is the StarbucksT-Mobile offering However using StarbucksT-Mobile as a pricing guide is dangerous Worldwide research shows that prices are highly variable and declining with the largest percentage decreases in the United States Broad Group 2003 In Asia one of the future expansion channels for McCaf and a harbinger of technology trends in the US providers slashed prices by over 14 in 2003 in a market where monthly service already averages less than 20 per month Broad Group 2003 Consistent with its food service product message McDonalds should compete on price The wireless hotspot service provided by Truckstopnet nationwide offers service at over 500 locations and caters to similar consumer markets as McDonalds Truckstopnets service and others like it provides a better price benchmark With the low cost structure outlined previously McDonalds has sufficient room to price wireless service low and use the service to boost sales of food products Table 11 below compares the Truckstopnet service pricing and the proposed McDonalds pricing Truckstopnet
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