Marketing implications customers atlantics strategy

Marketing Implications:
Customers
Atlantic's strategy is to sell a product unique in its category to a consumer-based market looking for a
basic server. With the growth of the Internet came the projected growth of the low-end basic server. Atlantic
Computer’s targeted customers for Tronn are small and medium sized businesses utilizing smaller servers with
capability to maximize file sharing and web speed. The Tronn server has the capability to outperform its
competitor, Ontario's Zink, by up to 4 times the speed with added cost savings due to its added software
feature, PESA. Therefore, it is well-positioned not as a competitor in price but as a product differentiator
compared to Ontario. Atlantic is known within its industry for its strong brand image, quality, and customer
service. 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 with
potentially high returns in customer loyalty resulting in long-term profit. Historically, the industry’s pricing
standard is to give away the software for free. However, with the added values of top-notched customer
service, post-purchase cost savings, and product differentiation, Atlantic's customers will save more money and
time when choosing the Atlantic Bundle over Ontario's Zink.
Marketing Implications: Management team
Matzer and the management team favor a conservative pricing strategy when marketing the Bundle
because it provides them with a more competitive price against a formidable competitor that has already
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captured 50% of the market share. With the industry’s norm of giving away the software for free, Matzer
would be resistant to any other pricing strategy than the status quo without demonstrated reason.
Marketing Implications: Marketing team
Cadena and his marketing team are paid on 70% salary and 30% commission; knowing this, the team
will probably prefer a pricing strategy that favors them to sell more servers to customers. However, when
Tronns are bundled with an efficient PESA software system, customers will sometimes require fewer servers to
perform the same function. Hence, the sales team would be likely to downplay or ignore the PESA add-on. To
resolve this dilemma, the company's commission needs to be restructured where it is based on overall profit to
incentivize the sales team and obtain their buy-in. Moreover, the marketing team needs intensive training on
how to sell a superior product that has long-term economic savings to an unfamiliar market niche for Cadena’s
team. This would require the marketing team to continue the Atlantic’s high-quality customer service and high-
touch post-sale assistance.