- Customer Relationship Marketing
- Negotiation role-play
- Seller preparatory notes
- The Apple Company has developed a new a model of smart phone model e-z. This new model of smart phone was developed by the management of the company in order to meet the demand of the ever-changing mobile phone industries. In order to ensure that the phone would meet the demand of the customer more especially the youth, the management of the apple embarked on a research to evaluate the current mobile phone features available in the market (Zikmund,& Babin, 2007,p.137). Some of the feature of the new model of smart phone will have include an improved texting solution, an SD card that support extra storage, a faster CPU performance, long life buttery, among other good features. With these new features the management of the Apple expects that the phone will have a high demand in the market. In addition, the management of Apple Company has also used a lot of money to carry out some promotional advertisement in both the television and the local newspapers. The new model of the smart phone will retail at $ 400 however the buyer can be allowed to purchase the phone at $300 upon negotiations. The sellers are encouraged to apply various negotiation skills to enable the company realize some increase in sales. The company wishes to sell the new smart phone to the Tesco supermarket which will then distribute the phone to various customers in the UK retail market.
- Buyer’s preparatory notes
- The Tesco supermarket is the buyer of the new model of smart phone e-z I this case. The supermarket has various branches in the UK market where it normally releases the most consumer-based products to customers. The management of company has been collaborating with the Apple Company to sell its products. Tesco normally take large stocks of smart phone from Apple Company and distribute to the customers. Moreover, the company also has a policy where they normally retain a minimum stock which is usually known by the seller. With the increased advertisement of the new model of smart phone there is high chance that the new model will also have a high demand. The other important point to note is that the Tesco supermarket always goes for a maximum price irrespective of the order size. In addition, the supermarket usually orders some products for initial trials in the market. However, in this case the company does not require any trial since the phone has already been introduced into the market. Another important point to note is that the management of Tesco has been concerned that there were increased cases of problems with newly introduced model of smarts. This implies that during buying of the new introduced model e-z the Tesco management will be keen to demand for one-year warrant of the phone (Havaldar, 2010, p.82).
- Negotiation
- The seller (Mr. Fredrick) from Apple Company enters the sales department office of Tesco supermarket and meets the buyer (Mr. Edward).
- Seller: [smiling] how are you doing sir?
- Buyer: I am okay sir, welcome to Tesco, long time since we met any good news from Apple.
- Seller: [shaking his head with a smile] Yes of course as you know we are always committed towards ensuring that we are the leading company in the mobile industry.
- Buyer: [nodding his head] that is good, what is that you are offering this time?
- Seller: Apple has introduced a new model of smart phone which is e-z. The new model has incredible feature such as a new improved screen resolution, a faster CPU performance, long life battery and an SD card that supports extra storage among other features. The company has first embarked on various promotion strategies to promote the phone.
- Buyer: That sounds like good phone I have only heard about it on Television do you have a sample?
- Seller: [opening his briefcase to produce the phone] Yes
- Buyer: [stretching his hand to get the phone] it looks great!
- Seller: it is as I have told you the phone have incredible features. We have already introduced the phone into the market through our major outlets so you are assured that once you start selling the product it will meet a ready market
- Buyer: [With some doubt] really? Remember the phone is in its early phase in the market
- Seller: I agree with you, but as I have told you before we have already done some market trial and again we have done some advertisement of the product.
- Buyer: how much does the phone cost?
- Seller: the phone only cost $400
- Buyer: but that should be the final retail price?
- Seller: Yes as for your case we can negotiate
- Buyer: since I am one of your regular customers then you first need to give some free sample to do market trial
- Seller: that one will not be possible this time since I have told you that we have already introduced the phone to the market
- Buyer: then as your regular customer give a discount
- Seller: I will give you 20% discount, is that okay with you.
- Buyer: That is still to high remember I am your regular customer so why can’t you give 25% discount?
- Seller: I will give that discount since you are my customer
- Buyer: something else you need to assure me
- Seller: [amazed] what?
- Buyer: I mean you need to avail a warrant of 1 year for the new model of phone.
- Seller: [nodding his head] that is okay I will.
- Reference
- Havaldar, K. 2010. Business marketing: Text and cases. New Delhi: Tata McGraw Hill Education Private Ltd.
- Zikmund, W. G., & Babin, B. J. 2007. Exploring marketing research. Mason, Ohio: Thomson South-Western.
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