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Posted: March 3rd, 2020
The case study discusses the marketing opportunity of Toronto-based Dexit Inc. for the new electronic payment system for retail transactions. The CEO of the company, Renah Persofsky, faced two traditional questions of marketing strategy: the preferable target group and the choice of optimal strategy, “push” or “pull”. Marketing opportunity The advantages of for the new electronic payment system for retail transactions were obvious. First, its implementation could make the transactions faster and safer for the end user.
Second, the using of similar payment systems gained the wide popularity. Third, the popularity of digital payments without dealing with the cashiers is growing nowadays, and this trend existed in 2002 when Dexit made a decision to launch its new payment system. At least, the competition on this sector was rather low. Thus, the implementation of new payment system was reasonable solution. However, even in this favorable market opportunity the company faced two dilemmas.
First was the choice between consumers (the users of the Dexit tag) and merchants (the users of the Dexit POS terminals). It was necessary to define which segment would be most profitable to serve. Besides, the issue of different customers approach was topical. The new payment system could gain fast popularity among that group of the customers, which was known as “early gainers”, but as usual this group couldn’t transform to the group of the most “heavy customers”.
At last, the implementation of new system demanded the new wave of marketing, and it was needed to make a solution about the preferable marketing strategy. “push” or “pull”. The choice also depended from the target customer group. Conclusion It can hardly be decided what marketing strategy could be optimal for Dexit; however, the study of the latest trends allowed recommendation to aim the strategy on the “heavy customers” and make the system merchant-oriented.
References
DEXIT — A MARKETING OPPORTUNITY. 905A02. Copyright © 2005, Ivey Management Services
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