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Title: Marketing Report: the Google Glass

Name: Yan Chen

Student Number: s0242465

Course Code: MRKT20019

Course Name: Marketing Management

Assignment Number: 1

Assignment Name: Report

Due Date: Wednesday, 8th May 2013

Course Coordinator: Roshnee Ramsaran-Fowdar

Lecturer: Sangeeta Rai

Tutor: Sangeeta Rai


Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

Executive Summary
This marketing report developed a marketing plan for the Google glass, the
first wearable computer. Through researching the STP strategy, investigating
and evaluating four major segmentation variables, two targeting
segmentations were identified for the Google glass. That is to say, the Google
glass will target at Sydney market and its target consumers will be the middle
and upper class with different life grouping styles.

In order to successfully launch the Google glass into the Sydney market in
2014, the market report also evaluated some effective strategies to position
this new product. Through researching, evaluating and analysing, some
effective marketing strategies for promoting the Google glass were provided
in this report.

The following recommendations have been made:

- Google should be positioned at high-quality department store in Sydney


with high quality of product displays and staff. Google will use direct
marketing and it will be directly sold from the producer to the
consumer.
- Google will offer several promotional strategies such as events,
websites, media and advertising. It will have a voice in every strategy.
Moreover, YouTube videos, blogs, and Facebook will all have the
information about the Google glass.
- Google will use Public relations (PR) support and inform the public that
it had taken several years to develop its high tech product. It had
involved an investment of millions of dollars in development and
advertising this product.
- Google will study customer behavior and consumer feedback after it
launches into the market in 2014.
- In the future, Google should consider extend its product line and adopt
innovation so as to expand its life cycle, gain and retain more

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consumers.

Table of Contents

Title Page
EXECUTIVE SUMMARY........................................................................................................I

TABLE OF CONTENTS..........................................................................................................II

LIST OF TABLES...................................................................................................................III

1.0 INTRODUCTION............................................................................................................1
1.1 BACKGROUND OF GOOGLE GLASSES..............................................................................1
1.2 AIMS...............................................................................................................................2
1.3 SCOPE.............................................................................................................................2

2.0 LITERATURE REVIEW................................................................................................2

3.0 STP STRATEGY..............................................................................................................4


3.1 SEGMENTATION..............................................................................................................5
3.1.1 GEOGRAPHICAL...........................................................................................................7
3.1.2 DEMOGRAPHICAL.........................................................................................................7
3.1.3 BEHAVIOURAL.............................................................................................................8
3.1.4 PSYCHOGRAPHIC..........................................................................................................9

4.0 RANKING ORDER.......................................................................................................11

5.0 TARGET MARKET ONE: SOCIOECONOMIC STATUS.......................................13

6.0 TARGET MARKET TWO: LIFESTYLE GROUPING.............................................13

7.0 EFFECTIVE MARKETING STRATEGIES FOR THE GOOGLE GLASS............14

8.0 POSITIONING...............................................................................................................15
8.1 POSITIONING STATEMENT.............................................................................................15
8.2 PERPETUAL MAP...........................................................................................................16

9. CONCLUSION.................................................................................................................17

10. RECOMMENDATIONS...............................................................................................18

REFERENCES.........................................................................................................................19

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

List of Tables
Table 1 The STP Model Steps.……………………………………….……………………………………5

Table 2 Requirements for Effective Segmentation.………………………………………….6

Table 3 Geographic Segmentation.……………………………………………………………………7

Table 4 Demographic Segmentation.…………………………………………………………………8

Table 5 Behavioural Segmentation……………….……………………………………………………9

Table 6 Psychographic Segmentation.…….………………………………………………………10

Table 7 Big Five Personality Traits.…………………………………………………………………10

Table 8 Ranking Order.…………………………………………………………………………………….12

Table 9 Targeting Strategies..…………………………………….……………………………………15

Table 10 Perpetual Map.…………………………………………….……………………………………17

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

1.0 Introduction
It is widely acknowledge that today’s companies are moving away from
mass marketing and product-variety marking towards target marketing,
because target marketing can help marketers to find out their
marketing opportunities more efficiently. Therefore, in order to
successfully promote the sales of Google glasses in 2014, Google should
adapt this marketing strategy and focuses on potential customers who
have greater purchase interest (Kotler et. al 2013).

1.1 Background of Google Glasses


This report introduces the Google glass, which will enter into
people’s lives by 2014. Montgomery (2013) noted that Google
glass is a wearable computer, which has been developing by
Google. This high technology product will be available in a range
of colours and the price for this wearable computer will be around
$1500. The 'smart' spectacles can be worn like normal glasses
which would allow people to do a variety of things such as surf
the Internet, locate nearby friends, view maps and other data,
respond to voice commands, send text messages, take and send
photographs and video of what people are viewing (Karp 2013,
Douthat, 2012). Without a doubt, an effective STP strategy is
needed so as to successfully assist this new product in launching
into market. More specifically, a good segmentation, targeting
and positioning plan will definitely promote the sales of Google
glasses.

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

1.2 Aims
The purpose of this report is to develop a segmentation,
targeting and positioning plan for the Google glass. This STP plan
aims to provide a situational analysis, target market
descriptions, marketing objectives, and marketing strategy for
Google. Through a comprehensive analysis of major
segmentation variables, a better understanding of current
consumer marketing can be obtained. Hence, effective strategic
marketing plans can be made so as to attract and gain a vast
number of customers and make enormous profits.

1.3 Scope
In order to segment a market for Google glass, a high technology
product, this marketing report will examine four major
segmentation variables, such as geographic, demographic,
psychographic, and behavioural variables for this product (Kotler
et. al 2013). By doing this, the best way to view the market
structure will be identified; therefore, Google can fully develop
its ability so as to serve different segments of current market.
The research for this report was conducted through consumer
marketing research, utilised peer reviewed journal articles and
textbooks accessed through the CQUniversity Library.

2.0 Literature Review


It has been widely acknowledge that marketers are moving toward
target marketing, as this is an efficient way to obtain consumers and
save resources. Kotler et.al (2013) claimed that target marketing
provides efficient way for sellers to find their marketing opportunities
because it is the best way to identify potential users. Therefore, in

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

such a consumer oriented marketing, it is highly recommended that


marketers should fully understand buyers’ purchasing behaviour before
they move toward to satisfy their customers with appropriate goods
and services. In order to achieve this, marketers should adapt STP
strategy into their marketing plan. In targeting market, market
segmentation, market targeting and market positioning are three main
steps, which serve to identify and define potential consumers, and
arrange for a product to occupy a distinctive place in the minds of
target consumers (Ferrell & Hartline 2007, Claudiu, Lonel & Tudor
2008, McMellon & James 2012, Oestreicher 2011).

To begin with, an effective segmentation should be substantial,


actionable, measureable, differentiable and accessible. Specifically, a
segment has to be of sufficient size and profitable. It is worthwhile to
locate in a place with more potential customers; Sellers should design
effective plans to gain and serve customers; Marketers are able to gain
sufficient information so as to segment a market; Segments must react
differently to marketing mix programs; Marketers should be able to
reach and communicate with their consumers in the segment through a
variety of methods (Kotler et. al 2013, Wong, 2013). Therefore, if these
five criteria are followed, then marketers can target their products
better to their potential consumers.

It has been stated that a consumer market can be segmented into four
major categories: geographic, demographic, psychographic and
behavioural variables (Kotler et. al 2013, Wong, 2013). In different
situations, different segmentation variables will play different roles.
Therefore, a marketer should take careful consideration so as to select
the most important segmentation factors that influence consumer

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

buying behavior when making marketing plan. Only by doing to this,


they can know how to better satisfy their consumers and attract them.

After evaluating the major market segments and selecting one or two
valuable segments, market should decide a strategy, which can be
adopted to cover the market. According to both Wong and Kotler et. al
(2013), there are three main market coverage strategies which are an
undifferentiated strategy, a differentiated strategy and a concentrated
or niche strategy. Among these marketing strategies, a differentiated
marketing strategy is very popular in today’s markets. This strategy
requires markets to develop individual marketing mixes for a variety of
segments. Also, a differentiated strategy can contribute to more sales
and greater customer satisfaction.

Lastly, position will be decided once marketers decide the segments of


the market. At this stage, a market will arrange for its product to
occupy in consumers’ minds. In order to achieve this, markets can use
different bases, such as product attributes (product features and
customer benefits), price and quality, product class, application, and
product user for positioning. Product characteristics should be matched
to the target market’s needs or wants (Kotler et. al 2013, Wong, 2013,
p 53).

3.0 STP Strategy


According to Kotler et.al (2013), STP is the essence of strategic
marking, because this strategy focuses on presenting a product to
customers, who want the product and are able to obtain it. The first
step of STP strategy serves to categorise groups of consumers with

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

different needs, characteristics, behaviour or marking mixes. The


second step serves to evaluate and define the potential consumers, and
the last step, positioning serves to arranging for a product to occupy a
desirable position in the minds of target customers and create a
detailed marking mix (Donelaicio & Kaunas 2008, Kotler et. al 2013).
The table below depicts three major steps in targeting marketing.

Table 1 The STP Model Steps

Source: Grancutt, Leadley & Forsyth (2004)

3.1 Segmentation
Kotler et. al (2013) emphasised that Markets consist of buyers
with different needs, wants, resources, locations, buying
attitudes and buying practices. Therefore, in order to target a
product better to the customer, a company need to segment a

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

market. A market can be segmented according to customers’


needs, lifestyle, age, purchasing power, and geographic location
to name a few. To be more specific, there are four major
variables, which are geographic, demographic, psychographic,
and behavioural variables, may be used in segmenting consumer
market. Moreover, an effective segmentation needs to follow
five criteria, such as substantiality, actionability, measurability,
differentiability and accessibility; therefore, a market should
evaluate each market segment’s attractiveness before selecting
the market segments to enter (Claudiu, Lonel & Tudor 2008,
McMellon & James 2012, Oestreicher 2011, Finisterra do Paço,
Barata Raposo, & Filho 2009).

Table 2 Requirements for Effective Segmentation

Source: Marketing Management Lecture Notes (2013)

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

3.1.1 Geographical
According to the first criteria of effective segmentation,
namely, substantiality, a segment has to be of sufficient
size and profitable. Clearly, it is worthwhile to locate the
Google glass in a place with more population. According
to Australian Bureau of Statistics (2011), Sydney has a
population of 4.6 million. The Google glass therefore, will
set Sydney, the most densely populated city in
Australia as geographic target area. Specifically, inner
Sydney will be the main focus because the four most
densely populated areas in Australia all surround Sydney’s
central business district (Australian Bureau of Statistics,
2013).

Table 3 Geographic Segmentation

Geographic Region, city size, density, climate


Region Sydney
City size Over 4.5 million
Density Major metropolitan areas
Source: Kotler et. al (2013)

3.1.2 Demographical
Based on the requirements for effective segmentation,
segment should also be actionable, measurable,
accessible and differentiable. Therefore, variables such as
age, income, occupation and education are chosen in
demographic segmentation. Australian Bureau of Statistics
(2011) shows that Sydney has a population of 4.6 million
and the proportion of people aged 20 to 50 years is about
44.2%. The ratio between females and males is almost
equal. About two thirds of this age group has completed

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

undergraduate degree or substantial undergraduate


coursework. Therefore, the Google glasses users will be
this particular group of people who are in their early 20s
and late 50s, have an average wage and salary income of
$52325 per year (Australian Bureau of Statistics, 2010).

Table 4 Demographic Segmentation

Demographic Age and life-cycle stage, gender, income,


occupation, education, religion
Age 20s to 50s
Sex Female, male
Income Above $50,000
Education High school graduate, some college, college
graduate, postgraduate
Nationality Different nationalities
Occupation Managers, professionals, tradespersons and related
workers, and students
Source: Kotler et. al (2013)

3.1.3 Behavioural
After evaluation, the effective segmentation is identified.
The Google glasses buyers would be people, who are tech
savvy adults, conscious users or impromptu supporters,
have different occupations: Managers, professionals,
tradespersons and related workers, and students to name
a few. They are all the potential users because they need
to browse the Internet frequently and they highly depend
on technology. Usually, these people are comfortable in
spending more money on high technology products.

Table 5 Behavioural Segmentation

Behavioural Purchase occasion, benefits sought, user status,

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

usage rate, loyalty status, buyer-readiness state,


attitude
Usage rate Heavy users, medium users
Buyer-readiness Aware, informed, interested, desirous, intending to
stage buy
Attitude towards Enthusiastic, positive, indifferent
product
Source: Kotler et. al (2013)

3.1.4 Psychographic
Based on the five criteria of effective segmentation,
several variables in behavioural segmentation are also
identified. Google glasses users will be people with middle
and high social status as they have relatively high income.
They are groups of people who are happy with what have
got, prefer socialisation and absorb new information,
value visible achievement and always look for something
better. In all, they have very active life style.
Furthermore, Google glasses users, trendsetters, who are
dynamic and open minded, have extraversion,
conscientiousness and openness to experience personality
traits (see table 7). They are very enthusiastic and
positive people who like adventure, enjoy trying new
things, love exploration, experimenting and fantasies
(Solomon et al. 2013, pp. 96-105, Chamorro-Premuzie &
Furnham 2008, cited in Fazeli 2012, pp. 265-268).

Table 6 Psychographic Segmentation

Psychographic Socio-economic status, values, attitudes and lifestyle


grouping, personality
Needs- self-actualisation, aesthetic needs, cognitive needs, esteem
motivation needs
Social class Middle, upper
Personality Extroverts, novelty seekers, risk-takers, innovators, fashion

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conscious
Values, Something better, young optimists, socially aware, look at me
Attitudes
Source: Kotler et. al (2013)

Table 7 Big Five Personality Traits

Personality Extraversion Agreeableness Conscientiousnes Neuroticism Openness to


Trait s experience

Friendliness Trust Self-Efficacy Anxiety Imagination

Gregariousness Morality Orderliness Anger Artistic Interests

Facets Assertiveness Altruism Dutifulness Depression Emotionality

Activity Level Cooperation Achievement- Self- Adventurousness


Striving Consciousness
Excitement- Modesty Intellect
Seeking Self-Discipline Immoderation
Sympathy Liberalism
Cheerfulness Cautiousness Vulnerability

Source: Fazeli (2012, p. 266)

4.0 Ranking Order


Through a comprehensive evaluation and analysis of geographic,
demographic, psychographic, and behavioural variables (Kotler et. al
2013), a better understanding of consumer marketing with regards to
the product, the Google glass has been obtained. Among these major
variables, psychographic variable plays a significant role in segmenting
a market for Google glass, which is on the top list, followed by
behavioural variable, and then demographic variable, which is ranked
as the third valuable segmentation. However, geographic variable is
regarded as the least important segmentation.

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

According to Wong (2013, pp. 48-49), consumer’s personal,


psychological and social factors have great impact on their purchasing
behaviour. Undoubtedly, Google glass is the latest high technology
product, so it can easily attract people with extraversion,
conscientiousness and openness to experience personality traits
(Solomon et al. 2013, pp. 96-105). Additionally, consumer’s buying
decision also affected by social class and culture. If people who come
from the middle and upper social class have Google glasses, then their
friends will definitely follow as well. Therefore, psychographic variable
is regarded as the most important segmentation. However, the
geographic variable, such as region, city size and density do not
influence consumer’s buying behavior, therefore, it is ranked as the
least important segmentation. The table below outlines the major
variables that are used in segmenting consumer market for Google
glass.

Table 8 Ranking Order


Ranking Segmentation Description of each main consumer segmentation
1 Psychographic Socio-economic status, values, attitudes and lifestyle grouping,
personality
Needs-motivation self-actualisation, aesthetic needs, cognitive needs, esteem needs
Social class Middle, upper
Personality Extroverts, novelty seekers, risk-takers, innovators, fashion
conscious
Values, Attitudes Something better, young optimists, socially aware, look at me
2 Behavioural Purchase occasion, benefits sought, user status, usage rate,
loyalty status, buyer-readiness state, attitude
Usage rate Heavy users, medium users
Buyer-readiness Aware, informed, interested, desirous, intending to buy
stage
Attitude towards Enthusiastic, positive, indifferent
product
3 Demographic Age and life-cycle stage, gender, income, occupation, education,
religion
Age 20s to 50s
Sex Female, male
Income Above $50,000

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Education High school graduate, some college, college graduate,


postgraduate
Nationality Different nationalities
Occupation Managers, professionals, tradespersons and related workers, and
students
4 Geographic Region, city size, density, climate
Region Sydney
City size Over 4.5 million
Density Major metropolitan areas
Source: Kotler et. al (2013)

5.0 Target Market One: Socioeconomic Status


In psychographic segmentation, consumers are divided into different
groups based on socioeconomic status, lifestyle or personality
characteristics. In terms of Google glass, social class will be selected as
the first target market. Kotler et. al (2013) emphasised that social class
is determined by occupation, income, education, source of income,
house type and dwelling area. Google should focus on social class
because people within the same social groups share similar values,
interests and buying behaviour. The target market for the Google glass
would be people residing within the middle and upper economic class,
because the price for this wearable computer is $1,500. The consumer
would most likely be someone who is interested in the new gadget.
Overall, if socioeconomic status is selected as target segmentation,
then Google will have great potential to attract and gain enormous
number of customers because these people and most of them are tech
savvy who are financial independent, are very interested in purchasing
this latest high-tech product.

6.0 Target Market Two: Lifestyle Grouping


According to Kotler et. al (2013), value segments can represent the
choices that people make and changes they experience in their daily

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lives. Therefore, value segments, lifestyle grouping, can be used as the


second target market. Google glass is the most latest high-tech
product, thus, people with young optimism, socially aware, visible
achievement, something better and look at me lifestyle may be
interested in it and be potential consumers. More specifically, young
optimism, mainly city dwellers who like new gadget, will definitely
have easy access to information about Google glass and will absorb it
quickly. Clearly, innovators would be the target market for the Google
glass. Besides this, people, especially young adults, have high tendency
to be directed by their peers group because they are always on the
move, thus, they would like to purchase Google glasses if their friends
have them. Also, there are people who always search for the next big
deal and look for something to reward their achievement. In all, Google
class provides these groups of people with great opportunity to satisfy
their needs (Kotler et. al, 2013).

7.0 Effective Marketing Strategies for the Google Glass


After evaluating and identifying two important segments, Google will
then choose the most appropriate strategy to cover the market.
According to Kotler et. al and Wong (2013), there are three main
market coverage strategies: an undifferentiated strategy, a
differentiated strategy and a concentrated or niche strategy. Through
investigating, comprising and analysing, it is highly recommended that
Google adopt a concentrated or niche marketing strategy. Since the
Google glass will focus on the middle and upper class Sydney residents,
therefore, undifferentiated strategy can also applicable because people
within this social group have common interest, needs and wants. The
Google glass is a wearable computer, which can be used as camera,
video recorder, GPS, communication tool, to name a few, therefore, it
can cater for people with different purchasing needs and purpose.

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

Therefore, a differentiated marketing strategy is also applicable.


Besides this, Google can also choose a concentrated marketing strategy
because Google has decided to serve only two segments. Thus, it is a
wise idea for Google to utilise its resources and establish a strong
image to dominate market position by a concentrated strategy (Vignali
& Curland 2008, Ebitu, Mbum, & Okon 2012).

Table 9 Targeting Strategies

Source: Ebitu, Mbum, & Okon (2012)

8.0 Positioning
Wong (2013) addressed that each market should use various bases, such
as product attributes, price and quality, product class and product user
to name a few, while positioning its product. The product
characteristics should be matched to the target marketer’s needs or
want.

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

8.1 Positioning Statement


Since Google will decide to select middle and upper class as one of the
segments of the market to enter, this company should arrange an
appropriate position to match the Google glass and occupies in
consumers’ minds. Google aims to create a “high quality with a high
price” position for its product.

The marketing plan will highlight every feature of the Google glass
ranging from production to distribution. Google will concentrate on
showcasing the quality, luxury, prestige and unique benefits the Google
glass will offer. Entering the market as the first wearable computer,
the Google glass will have advantage in pricing. Value and prestige will
be communicated through price. Comparing the other computers, the
price of the Google glass may be slightly higher but it will then convey
the message of being luxury, prestige and unique without compromise.
A value based price model will be one of the approaches to the Google
glass.

Furthermore, the promotion and advertising aspect will be vital in the


success and acceptance of the Google glass into Sydney market. Google
will have a voice in every strategy or campaign. We will stress the
unique features offered by the product. In all, this marketing plan will
be developed by the adaptation of the extended marketing mix, the
sever Ps marketing formula: product and service, price, placement,
promotion, process, physical evidence and people (Ebitu, Mbum, &
Okon 2012, Kotler et. al 2013).

8.2 Perpetual Map


A perceptual map indicated customers’ perceptions and
preferences by means of a visual display (Kardes, Cronley &

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

Cline 2011, Ferrel & Hartline 2008). In good marketing,


positioning is an essential component; therefore, a perceptual
map is developed for the Google glass to determine its position.

Table 10 The Google Glass Perpetual Map

High perceived quality and status

David Jones
Myer

Limited service
Less personal Extensive
personalised
service

Low perceived quality and status

Source: adapted from lecture notes

9. Conclusion
In conclusion, though a wide research of STP strategy, five criteria for
effective segmentations and marketing strategies for positioning, an
effective marketing plan is developed for the Google glass. After
evaluating all variable segments, the Google glass will target at the
middle and upper class who live in Sydney, with a variety of lifestyles,
such as young optimism, socially aware, visible achievement,
something better and look at me lifestyle. Additionally, in order to
attract more customers, Google will develop a positioning strategy
adapted from the seven Ps marketing mix. In all, Google will focus on
the quality, luxury and unique benefits of the Google glass at its
positioning stage.

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

10. Recommendations

Based on the finding, especially the promotion mix, several


recommendations can be made:

- Google should be positioned at high-quality department store in


Sydney. Its product displays and staff expertise are of high quality.
- Google will use direct marketing and its product will be directly sold
from the producer to the consumer.
- Google will offer several promotional strategies such as events,
websites, and advertising. It will have a voice in every strategy. Events
are held in places such as art galleries, restaurants and hotels. Its
website will give customers opportunities to experience the Google
glass in a virtual manner. Additionally, YouTube videos, blogs, and
Facebook will have information about the Google glass.
- Google’s website will display images of the Google glass in many
scenarios such as in the city, at home, in the work places and so on. By
doing this, it can engage people to relate to the images and also
“experience” what it would be like to possess the Google glass.
- Google will also use the press such as media images, media cover and
press releases to advertise its product.
- Google should also use Public relations (PR) support. The story can be
told and explained that it had taken several years to develop this first
wearable computer. It involved an investment of millions of dollars in
development and advertising of the Google glass.
- Google will look at customer behavior and consumer feedback after it
launches into the market in 2014.
- In the future, Google should consider extend its product line and adopt
innovation so as to expand its life cycle and gain and retain more

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Yan (Yenny) Chen s0241465 Marketing Report: the Google Glass

consumers.

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