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MMGP #6-Question 9 & 10
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[Name of the Institution]
MMGP #6-Question 9 & 10
Uber’s Distribution Strategy:
Uber was launched in 2009 into the taxi industry. It changed the old concept of taxi service and transformed the consumers view of private transportation. Uber created the world's biggest taxi network, and connected the riders by providing reliable, safe, and convenient transportation at a reasonable rate. In the market many firms are not linked with the customer directly; instead, intermediaries play their role to perform the company's function. In the case of Uber, there is no direct contact with the consumer instead of intermediates that are drivers, and internet application plays its function. Driver or Captain underplays the role of facilitator because they do not take title to the service nor negotiate transportation rates with the customers.
Uber is a multi-national company. It has excellent brand loyalty in the market. Therefore, it uses a pull strategy to enhance its value. Through pull strategy uber service invests their money into the promotion, advertisement, and various form of communication. For example discount package linked with different events are introduced which help to gain the loyalty of the customers. Uber gives different discount packages as well. Promotions and advertisement are not through the print media, but social media play a vital role, as well as posters at the famous locality of the city, are some of the market pull strategies of the service. Uber service depends on pull strategy as it is more effective when to perform through well executed and well-designed manner and in result it is actively increasing the demand of the consumer ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"YDakVjXS","properties":{"formattedCitation":"(Miller, n.d.)","plainCitation":"(Miller, n.d.)","noteIndex":0},"citationItems":[{"id":226,"uris":["http://zotero.org/users/local/rVaVAHaF/items/LU65XAAA"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/LU65XAAA"],"itemData":{"id":226,"type":"post-weblog","title":"(2) New Messages!","abstract":"Uber's marketing strategy depends on 7 different tactics, from best referral programs to partnerships to customer loyalty to stunts","URL":"https://www.annexcloud.com/blog/ubers-marketing-strategy-in-7-steps/","language":"en-US","author":[{"family":"Miller","given":"Grace"}],"accessed":{"date-parts":[["2019",2,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Miller, n.d.).
Uber service also adapts push strategy to increase consumer demand in the new countries especially Asian countries. They have introduced the uber female driver for the female customer to carry and promote the service in an effective manner. We can say that uber service depends on both pull strategy as well as push strategy but Pull strategy is a more effective strategy for the service.
Channels used to distribute Uber's services:
Uber does not sell its service directly to the consumer and intermediates that constitute the marketing channel performing its role. Through the Uber online application, Uber customer contact books the ride and intermediate that is the drivers provide them transportation service. Therefore, we can say that Uber service is using multichannel marketing as there are two intermediates i.e online application and drivers. These are the primary channels of the uber service without which service cannot be processed.
Besides these other channels that are used by the uber service include Telemarketing. Telemarketing is the channel through which uber provide promotional videos on social sites, for example, Facebook, Youtube, and Net Flix. Adding more and more channels providing uber service three major benefits. Firstly, multichannel marketing enables uber service to increase the coverage of the market. Secondly, it lowers the channel cost, for example, it was difficult to book a cab or even find out the cab, but through uber service, the customer can book a cap through online application while sitting at home. Lastly, it enables service to do more customized selling, for example, uber introduced different discount vouchers linked with the events or places where customer go on discount by using uber's packages ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"jgvlOs0g","properties":{"formattedCitation":"(\\uc0\\u8220{}Distribution Channels in Marketing,\\uc0\\u8221{} 2014)","plainCitation":"(“Distribution Channels in Marketing,” 2014)","noteIndex":0},"citationItems":[{"id":227,"uris":["http://zotero.org/users/local/rVaVAHaF/items/FUZHI33F"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/FUZHI33F"],"itemData":{"id":227,"type":"webpage","title":"Distribution Channels in Marketing","container-title":"Marketing MO","abstract":"Distribution channels in marketing are a key element of your entire marketing strategy. A distribution channel helps you expand your reach & grow revenue.","URL":"http://www.marketingmo.com/strategic-planning/how-to-develop-your-distribution-channels/","issued":{"date-parts":[["2014",1,10]]},"accessed":{"date-parts":[["2019",2,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Distribution Channels in Marketing,” 2014).
Uber is also investing in promoting its service through partnership. For example, Uber investing in international cricket leagues and different series to promote its services. Uber is implementing on its marketing channel and strategies successfully. Feedback option and customer service playing its role to increase the demand by getting the loyalty of the customers. Uber service makes sure to satisfy their customers to maintain the market position. Therefore we can say that Uber positioning is to evolve the moves of the world by making cities more accessible through a quick and efficient service.
References
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Distribution Channels in Marketing. (2014, January 10). Retrieved February 28, 2019, from http://www.marketingmo.com/strategic-planning/how-to-develop-your-distribution-channels/
Miller, G. (n.d.). (2) New Messages! Retrieved February 28, 2019, from https://www.annexcloud.com/blog/ubers-marketing-strategy-in-7-steps/
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