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Threat of New Entrants

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Creating an Advertising Plan.
Identify pyblic relations opportunities for the product or service.

© BrainMass Inc. brainmass.com October 25, 2018, 2:37 am ad1c9bdddf
https://brainmass.com/business/marketing/threat-of-new-entrants-308184

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Identify Public Relations Opportunities

Here are some opportunities you can use to enhance product public relations:
? contribute product information to regular product surveys
? issue press releases on new products and new product developments
? contribute feature articles about innovative product applications
? write "how-to" articles with instructions on product usage
? submit articles from technical specialists about industry developments

Quoted from : http://www.bnet.com/2410-13237_23-66479.html

"As David Yale notes in our new Training Manual How To Get Publicity for Your Products, preconditioning consists of clearly communicating and actually amplifying the need that your product fulfills before your product (which will then be a white knight that resolves that pressing problem) is even announced to the marketplace.
As public relations executive Bob Seltzer explains, "If you're going to come out with a new contact lens cleaner in six months, you would be very smart to get articles about the problems of cleaning contact lenses in the media - now. These stories don't even require that your product is mentioned. You're educating the marketplace about a problem, so when your product launches, you've made your audience more receptive. Publicity does not work as effectively if you wait until the product comes out to build awareness."

You can also publicize a product before it�s available to create a dramatic awareness that gets the media and the public looking forward to its introduction. A great example of this occurred several years ago when Seltzer�s public relations firm, Porter Novelli, "... launched the Gillette Sensor Razor with an announcement in October - even though it would not come out until January. The object was to build anticipation and expectation. Every year Fortune magazine does an article on the 10 best products of the year. The Gillette Sensor was actually named one of the 10 best products for 1989, even though it wasn't even introduced until 1990," according to Seltzer.
That's an interesting way to look at the world, isn't it? Publicize your product, possibly without even naming it, before your launch, so that your potential customers are very aware of their unmet need and foaming at the mouth to get it solved when your product gets launched."

Quoted from: http://101publicrelations.com/blog/how_to_get_publicity_for_your_products_001783.html

How to Get Free Publicity for Your Small Business

By David Frey
Brought to you by MarketingBestPractices.com
The other day I picked up the newspaper and read the headline, "Ex-High School Teacher Helps Struggling Students Improve Their Grades." The headline immediately caught my eye because I recently developed a system for high school and college students to improve their academic performance.
In the article it talked about a Houston woman who retired from high school teaching and now holds study skills workshops around town for high school students that need academic help. It included her contact information and web site address.
It was a quarter page article in the Houston Chronicle with over one million circulation. When I saw the article I wondered to myself how much that same article would have cost her if she had paid for it.
LOTS!

The Power of the Humble News Article

There is only two ways to land the name of your business in the local newspaper, by paying for an advertisement or by having a newsworthy event that is covered by the local press. Both can be very effective but the all-mighty news release can provide the level of credibility and respect that can spark on-the-spot sales for your business.
Advertisements contain information that people know are biased. Surveys have shown that the vast majority of people believe that all advertisements contain false or misleading information.
News articles, on the other hand, are written by third-party news organizations that have nothing to gain by endorsing your business. Hence, their believability is high. That's exactly why your print ads should use an editorial style format. People read editorial style (news article format) seven times more than an advertisement!
Why Are Some News Releases Chosen and Other Not?
Knowing how the press chooses one news release over another will give you an advantage in getting the coverage you're looking for. Most large pressrooms get hundreds of news releases a day. When yours comes in, it competes with all the others that come in with it. ...

Solution Summary

Identify Public Relations Opportunities

Here are some opportunities you can use to enhance product public relations:
? contribute product information to regular product surveys
? issue press releases on new products and new product developments
? contribute feature articles about innovative product applications
? write "how-to" articles with instructions on product usage
? submit articles from technical specialists about industry developments

Quoted from : http://www.bnet.com/2410-13237_23-66479.html

"As David Yale notes in our new Training Manual How To Get Publicity for Your Products, preconditioning consists of clearly communicating and actually amplifying the need that your product fulfills before your product (which will then be a white knight that resolves that pressing problem) is even announced to the marketplace.

$2.19
See Also This Related BrainMass Solution

In the following problem you need to determine whether a threat by an incumbent firm is credible and if it will deter a would be entrant, establish a way to make the threat be made credible, and demonstrate the process of backward induction to find an equilibrium.

Maytag wants to prevent Whirlpool from entering the market for high priced, front load washing machines. Front load washing machines clean clothes better and use less water than conventional top load machines. Even though front load machines are more costly to manufacture than top loaders, Maytag is nonetheless earning economic profit as the only firm making front loaders for upscale consumers. The following table show the annual profits (in millions of dollars) for Maytag and Whirlpool for the pricing and entry decisions facing the two firms.

(see attached document)

a) Can Maytag deter Whirlpool from entering the market for front load washing machines by threatening to lower price to $500 if Whilrpool enters the market? Why or why not?

Suppose the manager of Maytag decides to make an investment in extra production capacity before Whirlpool makes its entry decision. The extra capacity raises Maytag's total costs of production but lowers its marginal costs of producing extra front load machines. The payoff table after this investment in extra production capacity is shown here:

(see attached document)

b) Can Maytag deter Whirlpool from entering the profitable market for front load washing machines? What must be true about the investment in extra production capacity in order for the strategic move to be successful? Explain.

c) Construct the sequential game tree when Maytag makes the first move by deciding whether to invest in extra production capacity. Use the roll back technique to find the Nash equilibrium path. How much profit does each firm earn? (Hint: the game tree will have three sequential decisions: Maytag decides first whether to invest in extra plant capacity, Whilrpool decides whether to enter, and Maytag makes its pricing decision.)

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