Summary of case study 1

William Hewlett and David Packard are the graduate engineers from Stanford University who founded H-P Company in 1945 in Californias Silicon Valley. Right from its beginning, technology has been HPs prime focus which can be seen from its various products, which were technologically more advanced than its competitors or the market leader. H-P introduced its first product as audio oscillator, for measuring sound waves .H-P introduced its first minicomputer in 1968 and four years later company introduced H-P 3000 which was purchased by more than 15000 companies around the world. But still company needs to improve technology to gain share in market. In 1972 company introduced its first hand calculator called electronic slide rule. Due to stiff competition from its competitors H P has to reduce its calculator price from $395 to $50. In 1984 company introduced 3 products a Portable computer and LaserJet $ Think jet printers. This product was developed for the mass market, which H-P had previously abandoned. As a result, H-P began utilizing marketing strategies as those of companies- good companies such as Procter and Gamble. This resulted in the production of a large number of tailor made products that are directed to a specific customer. Due to competition from IBM, H-P 150 was rejected by retailers due to less speed and less storage memory. Another reason was difference in gross amount due to which retailers are unhappy. To overcome previous marketing errors, H-P started to build its new Portable model to be compatible with IBM PC, and bundling it with built-in hardware and software. This improved dealer relations, and helped H-P to increase its overall sales. Computers and peripherals became the major contributor towards the sales and profits of HP. HP focused on creating a brand family and gaining greater consumer acceptance, and thus started giving names rather than numbers to its new products like Portable, LaserJet and Think jet are readily identified among computer buyers. H-P is strategically focusing on technology to for low-cost mass production to gain market share and to become a market leader.

Questions
Question 1: What is marketing concept? Please explain whether H-P has adopted the marketing concept? What does your group think? Why? Answer 1: Marketing Concept: The marketing concept emerged in the mid-1950s. It is a philosophy that firms should analyse the needs of their customers and then make decisions to satisfy those needs, better than the competition. In short marketing concept involves 1. Focusing on customer needs before developing the product. 2. Aligning all functions of the company to focus on those needs. 3. Realizing a profit by successfully satisfying customer needs over the long- term. The marketing concept is about matching a company's capabilities with customer desires. This matching process takes place in marketing environment. H-P till 1984 followed a product oriented philosophy and its prime focus was the technology. After 1984 H-P launched products for the mass markets and utilized strategies similar to FMCG (Fast moving

consumer goods) companies and tried to relate with customers and create a brand family by giving names to its products rather than numbers. Question 2: How has H-P altered its marketing mix in an effort to become more marketing oriented? Answer 2: HP over the years has undergone various changes that indicate that it has altered its marketing mix in an effort to become more market oriented. Product shifting its focus from handheld calculators to personal computers as they believed that PCs are the way of the future. H-P laid emphasis on constant change, differentiation, reliability and creating brand family. H-P offered additional accessories and services. Company started to give names rather than numbers to make a brand family. Price Competitive and wide range of pricing based on differentiated products. Greater margin for wholesalers and retailers. Bundling of services and accessories. Promotion Over the years as the company grew we can see that the focus of HP has been to create Brand identity of the company and its products. It changed its strategy from push based to pull based. Greater spending on advertising and sales promotion. Place to cover this aspect of the marketing mix H-P began offering better payment terms and larger quantity discounts to its dealers. As a result of improved dealer relations, the company increased the number of its full-line retailers from 350 to 750 and it stocked another 1, 050 dealers with a portion of the line. Question 3: What must H-P do in order to develop a marketing orientation? Answer 3: Marketing oriented firm is one that allows the wants and needs of customers and potential customers to drive all the firm's strategic decisions. H-P can undertake following decisions: Do a greater amount of market research to understand consumer needs and preferences. Should cater to specific and growing number of consumer segments by developing broader product lines. Should not only focus on technical specifications but also on product benefits and intangibles. Since its a dynamic market focus should be on product innovation techniques. Offer ancillary services like credit availability, delivery, warranty etc. to maintain high customer loyalty. Question 4: Identify several similarities between the marketing of cars and the marketing of personal computers. Answer 4: The art of making something go faster without actually buying a bigger engine or processor.

Both in case of cars and computers companies have to update the models each year to attract more and more customers. As it is necessary for a car maker to give out the major specifications, similarly computer vendors must give the outline of configuration of the product. The art of adding huge amounts of stuff and benefits that have no much use but makes the consumer delighted. The idea of being a passionate owner like owing expensive computer similar to luxury cars. Question 5: Please evaluate the general environment of business as prevalent today and comment on the success factors that may contribute to a successful marketing effort by any company in any product category.
Answer 5: Business is both an art and a science. Pressure is a general environment of business

as prevalent today. Pressure on today's business is on the rise since competition is getting stiff by the day. So unless one manages his business with all seriousness and with full utilization of his skills, it is quite possible that instead of rising up the business ladder, business may fall head down. Therefore every business has to learn the intricacies of different aspects of managing today's business environment.
A factor is anything that contributes casually to a result. Or we can say a factor is a necessary but not sufficient for success. All success factors taken together are both necessary and sufficient. A clear business plan is the main factor of the successful marketing effort which also includes 4P s which means Product, Price, Place (Distribution), and promotion are the four main factors which are successfully contributing in marketing effort of any company in any product category. Because to market any products of any company first choose a right product which customer want and then you have to find a right price. A price which can satisfy consumers and then you have to find a place to reach your target audience and to do this promotion plays a vital role through many mediums like advertising.

Relationship to Concepts
From the above case we can see how theoretical marketing concepts such as STP i.e. Segmenting, Targeting and Positioning come into play in the real world. Also how marketing mix play his role and how the approaches of the company from production orientation changes in to the marketing orientation. As seen by their strategy while operating in the calculator market, with the onset of competition they concentrated on selling the higher priced ones used by engineers and financial analysts. And how they change it in to a brand family explain these theoretical marketing concepts in reality.