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Marketing implications customers atlantics strategy

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Marketing Implications:CustomersAtlantic's strategy is to sell a product unique in its category to a consumer-based market looking for abasic server. With the growth of the Internet came the projected growth of the low-end basic server. AtlanticComputer’s targeted customers for Tronn are small and medium sized businesses utilizing smaller servers withcapability to maximize file sharing and web speed. The Tronn server has the capability to outperform itscompetitor, Ontario's Zink, by up to 4 times the speed with added cost savings due to its added softwarefeature, PESA. Therefore, it is well-positioned not as a competitor in price but as a product differentiatorcompared to Ontario. Atlantic is known within its industry for its strong brand image, quality, and customerservice. It continues this competitive branding in the basic server category by creating a customized, high-quality product in the Atlantic's Bundle. In doing so, Atlantic computer creates a value-niched market withpotentially high returns in customer loyalty resulting in long-term profit. Historically, the industry’s pricingstandard is to give away the software for free. However, with the added values of top-notched customerservice, post-purchase cost savings, and product differentiation, Atlantic's customers will save more money andtime when choosing the Atlantic Bundle over Ontario's Zink.Marketing Implications: Management teamMatzer and the management team favor a conservative pricing strategy when marketing the Bundlebecause it provides them with a more competitive price against a formidable competitor that has already9
captured 50% of the market share. With the industry’s norm of giving away the software for free, Matzerwould be resistant to any other pricing strategy than the status quo without demonstrated reason.Marketing Implications: Marketing teamCadena and his marketing team are paid on 70% salary and 30% commission; knowing this, the teamwill probably prefer a pricing strategy that favors them to sell more servers to customers. However, whenTronns are bundled with an efficient PESA software system, customers will sometimes require fewer servers toperform the same function. Hence, the sales team would be likely to downplay or ignore the PESA add-on. Toresolve this dilemma, the company's commission needs to be restructured where it is based on overall profit toincentivize the sales team and obtain their buy-in. Moreover, the marketing team needs intensive training onhow to sell a superior product that has long-term economic savings to an unfamiliar market niche for Cadena’steam. This would require the marketing team to continue the Atlantic’s high-quality customer service and high-touch post-sale assistance.

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Term
Fall
Professor
N/A
Tags
Marketing, Pesa, atlantic bundle

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