MEPHISTO PRODUCTS

Mephisto Products



Mephisto Products

Criticise Mephisto Products' approach to sales and marketing.

Mephisto Products were initially the pioneer of the electromechanical control devices in the industry. They had a cutting edge over other competitors that later entered in the market but they did not capitalize on the opportunity. If they had continued bringing in innovations in the products they easily would have been the market leader right now.

Mephisto Products approach towards sales and marketing was also not right. The sales team was not given any authority to set prices. The company kept the price constant which made them loose valuable sales against their competitors. The products offered by the company to the customer were sensitive in nature and it required awareness to be created in the consumer's minds. Although Mephisto's sales team tried to create awareness but it was negative. The sales person forced on the negative aspects of the product that how the company can lose by not having the product. They should have focused on the positive aspects of the product. In addition to it there were other loopholes as well that caused gradual disaster for the company (Kotler 1975, 123 - 160).

Comment upon the following as they exist now at Mephisto Products:

(a) Marketing orientation

Marketing orientation suggests that the company responds to customer needs. Mephisto products on the other hand did totally opposite. Bullins believed in the fact that if customers want the product badly enough, they will wait for it, and buy it no matter what happens. Bullins also did not believe in giving discount. He thought that if customers did not want products in a large quantity they would not order them in the first place.

(b) The marketing mix

Product: The product offered by the company is electromechanical control device for the chemical industry. Initially, the product was suppose to be breakthrough but later on the company lost its competitive advantage.

Price: The company kept the prices fixed with respect to its competitors. The sales team constantly suggested the company to lower the price of the product but the company did not do so.

Place: The product was not made widely available.

Promotion: The company did not focus on the promotion of its products. This was one of the reasons why the company's product failed in marinating its existence (David and George 1974, 281-6).

(c) The product life cycle

After analyzing the case it can be seen that the electromechanical control devices by Mephisto Products were in the decline stage of the product life cycle. The market here is slowing. Innovative products are being launched or the customers' tastes are changing, for instance. Prices in this stage can be so demeaning that many products are forced to withdrawn from the market. Profits can be increased by reducing marketing expenses and other costs.

As, it is evident from the case that the products by Mephisto are now being replaced by other competitors who are offering unique and innovative for the same problem. People are now switching to other products as they are available ...