Universidad Regiomontana

  1. Explain which of the promotional strategies used by Diesel are above- or below the-line. Analyze the impact that each approach might have.
Above-the-line marketing is aimed at a mass audience through media such as television or radio. This approach will reach to a mass of people but it will be in general, some people might like the marketing and some others won’t, what this kind of approach searches; it’s a wider range of promotion. For example Diesel:U:music which is a radio program.
Below the-line marketing takes a more individual, targeted approach using incentives to purchase via various promotions. This kind of promotion is more specific, so it searches certain kind of people for example price promotions and point on sales display.

  2. What type of promotion might Diesel:U:Music be regarded as and why?
A mix of above-the-line and below-the-line approaches, the balance and composition of that mix is what the Diesel team hands over to their passion and feels for the company and brand. If we had to define this approach in terms of theory, we would call it ‘through-the-line’, a blend of the two.
Because it’s a mass audience who hears the radio and at the same time, a resident DJ can decide which music to play and which bands to feature, so in this way it gets to certain people in certain part of the world.

  3. Explain the advantages and disadvantages of using premium pricing as a strategy.
  * Prices might be too high for some clients
  * It only gets to certain kind of costumers
  * Some people might think is not worth it
  * They can’t use penetration price strategy
  * Some clients think the higher the price higher the quality
  * Certain segment of people will buy it
  * They sell the concept of lifestyle rather than quality (they try to connect with client)
  * Convince clients that the price is worth the brand of the products

  4. Considering the distribution...