Market Promotion
The leverage sales approach can effectively be used by the Costco wholesalers in marketing their products. This is because the chain store distribution channels can effectively reach out expanding clientele by enhancing proper and efficient marketing tools. For instance, Costco wholesalers can choose to lower their prices in order to win a comparative advantage over the other wholesalers in the market. Costco brand name and image also ensures easy identification and also significantly assist the firm to market its products and services efficiently. Their well-coordinated mission to obey the law, take care of their members and employees as well as their continued respect to their vendors enables them to prosper in business. It is encouraging that Costco has always endeavored to produce quality goods and services to their consumers though at a considerably lower prices. And although majority of the firms are led by their selfish interest of maximizing their profits, Costco has a well-established code of ethics to guide their operations (Armstrong & Kotler 32).
Over the years Costco wholesalers have greatly expanded its operations by increasing their products and services to match growing markets. The firm also uses Kirkland signature as their brand name in all their products and buildings. The brand name, therefore, enables its consumers to easily identify its products and hence boost its output. And in order to ensure future sustainability, Costco wholesalers should greatly focus on product quality and reliability in the market. That way it will be able to maintain its positive reputation and the trust of both the existing and potential customers. It is also important for the firm to consider using cheaper marketing techniques such as internet, in order to lower its costs. And for efficiency, the firm should use advanced brand promotion techniques such as formation of website, which will work towards ensuring that customer needs are sufficiently met (Temporal 64).
Advertising and Public Relation (PR)
On the issue of advertising and public relations, businesses ought to effectively channel its resources into them in order to ensure success. I tend to disagree with McKenna’s argument that advertising is obsolete. This is because whenever a firm seeks to launch a new product in the market, it should first build its brand through thorough public relations. Such product PR is mainly obtained through regular trainings which equip the marketing group with the relevant information concerning the new product. On the other hand, the marketing group is then supposed to spread the same PR to the existing and potential customers. But in order to make the whole process successful, the firm ought to undertake enough advertisement. Advertisement in this case is supposed to increase product awareness in the market. Terming advertising as an obsolete tool of marketing to me seems not to be appropriate, since it is a necessary tool which aims at obtaining the overall objective of the firm (McKenna 4).
However, firms should seek to embrace new marketing and advertisement tools in order to realize the changing customer’s needs. Instead of using the traditional marketing tools, more advanced knowledge-based and experience-based marketing techniques ought to be used. This is because such techniques effectively enable firms to effectively and easily meet their customers’ needs. The increasing threats of customer loyalty due to the rising competition make it necessary for a firm to invest appropriately in advertising and other marketing avenues. But firms should remember that this marketing should not be done anyhow, but instead it should be done wisely. Costco should therefore find a better way of integrating their customers into their business as that can ensure a sustainable relationship between them and their customers. The firm should therefore establish a strong marketing team which is quick to respond to the changes in the market at all times. It should be pervasive in nature and everyone should work towards ensuring the firm’s success (McKenna 9).
Global Marketplace
With the increased competition in the market, businesses are left with no choice but to strategically position themselves to win the limited market. Firms have also opted to adopt an international perspective since that is what the future dictates. I agree with Levitt argument that MNC is obsolete and that the global perspective is absolute. Firms’ globalization usually wins them an absolute advantage since firms are able to maximize their output per unit as the market expands. Such moves, however, require standardization of products and services and also the way nations run their commerce and industry policies. It therefore enables the firm to stop focusing more on what people think and instead concentrate on what people want. With standardization of products and services, and with the adoption of economies of scale, firms like Costco can effectively maintain quality and reliable products and services (Levitt 93).
Globalization is, however, not an easy task, since it’s expensive and quite demanding. But its resulting outputs are usually commendable and worth investing. Costco wholesalers should therefore not be afraid to implement global policy of product standardization. This is because the global adoption will assist the firm expanding their market internationally and hence improve their earnings. It also becomes easy to market a standardized product than marketing a customized product. Globalization move therefore reduces marketing costs for a firm without having a negative implication on sales. It also adds value and reputation to the firm, which consequently boosts loyalty and trusts to their customers. Costco wholesalers should therefore seek to standardize their products and services to match the international standards, as it will positively impact on its output. Such a move will also enable the firm not to limit it territorially but have a global perception which will consequently increase its profitability and future sustainability (Levitt 94).
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