MARKET STRATEGY

Written plan (usually a part of the overall corporate plan) which combines

product development, promotion, distribution, and pricing approach, identifies the firm's

marketing goals, and explains how they will be achieved within a stated timeframe.

Marketing strategy determines the choice of target market segment, positioning, marketing

mix, and allocation of resources.

MARKET STRATEGY

• strategy - originally a military term, in a business planning context

• strategy/strategic means/pertains to why and how the plan will work, in relation to all factors of influence upon the business entity and activity, particularly including competitors (thus the use of a military combative term), customers and demographics, technology and communications.

MARKET STRATEGY

• Sonic, a hypothetical start-up company, is getting ready to introduce a new multifunction personal digital assistant (PDA), also known as a handheld computer. Sonic's new product in entering a marketplace crowded with offerings from palm, Handspring, and other PDA makers.

• Despite intense competition, Sonic can rely on numerous strengths. First, its PDA has a superior handwriting recognition system, which simplifies use. Second, it bundles valuable feature found only on higher-price rival products. Third, Sonic's PDA can accept any palm-compatible peripheral; and fourth it is priced lower than competing models. However, it weaknesses include: lack of brand awareness and image; lack of color display screen; and slightly heavier weight than most competing models.

Scanning the market Environment

• 1. Scanning the Market Environment

• a. What demographic changes are likely to affect Sonic's target market(s)?

• b. What economic trends might influence the future of the PDA market?

• c. What technological changes can potentially affect PDA development, buyer acceptance of PDAs and the development of substitute products?

• d. What current or emerging political-legal issues are likely to affect PDAs?

Any idea how to approach this assignment?

SCANNING MARKET ENVIRONMENT

• Demographic factors:• are associated with changing nature and volume of

population. It follows how people are conducting themselves in the new world, increasing per capita income, urban migration, ethnically diverse cities and mega cities. These are some demographic factors companies are monitoring. For example, a country like India and China are showing highest concentration of youth population where as Japan is showing high number of retired workers. Therefore, demand and consumption of product will also be different.

SCANNING MARKET ENVIRONMENT

• Economic factors: deals with function like purchasing power parity, income level, savings level and interest rates among many other. For example, countries with a high income level are more likely to afford luxury items compare to a low income level country. Savings level and interest rate determine the borrowing power as well as spending power of consumer.

SCANNING MARKET ENVIRONMENT

• Ecological factors: consist of natural resource composition in a given county. For example, demand for fossil fuel has sky rocketed in recent years there by increasing general price level in the market. Companies, therefore, are looking forward to designing products which eco-friendly design that is they are less fuel dependent and give out less pollution.

SCANNING MARKET ENVIRONMENT

• Technology factors: like internet and connectivity are changing the face of business. More and more people are doing business online. Science and medicine are also part of technology factors. Challenge for the company is to keep up with innovation and offer products, which are not obsolete.

SCANNING MARKET ENVIRONMENT

• Political environment: is also changing with more and more market based system rather than the socialist system. Furthermore, regulatory requirements like competition policy, investment policy, tax policy, etc. companies should investigate before taking their business to a particular country.

SCANNING MARKET ENVIRONMENT

• Culture environment: deals with factors like opinion people have towards themselves, others, organization and society in general. People have become more eco conscious, contributing one or many causes they can relate to, want organization to be responsible for their action and are looking to open society with meaningful co-existence.