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Creation and distribution of goods and services - Essay Example

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Creation and Distribution of Goods and Services Name: Institution: CREATION AND DISTRIBUTION OF GOODS AND SERVICES In 1988, Aldus corporation’s sales and marketing executives met to start strategic marketing planning for the year 1989. The marketing manager for their European operations, Richard Strong, proposed the splitting of Aldus’ product family into two distinct lines of production…
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Creation and distribution of goods and services

Download file to see previous pages... Richard Strong put forward the argument that the proposals would allow the corporation to develop two focused and separate market and product strategies for the market segments. The initial response was guarded, with its advantage being that it would allow the corporation to clarify positioning of its products while aiding Aldus to establish a unique and strong company identity in both market segments. However, the corporation had based its success via the offering of a single product line bridging creative professionals and business. This paper aims to evaluate this proposal. Strong’s proposal to alter the positioning strategy for Aldus As PageMaker’s sophistication grew to meet the high-end user’s evolving needs, the product became more unattractive to the business segment that was not as sophisticated. The primary distribution channels lacked sophistication to lend support to these high-end users, leading Strong to believe that the corporation faced the danger of being unable to serve these two markets. The situation was made worse in the European market by Apple Macintosh’s weak position, which made Aldus depend more PageMaker’s MS-DOS version. ...
Trying to meet these segment’s divergent needs with one product line placed a high demand on software development staff. The product’s complexity would complicate the upgrade task and delay upgrade schedules. Conflict in the corporation arose because the software development staff was oriented to the graphic’s market, while others were oriented to business segments. Both groups could only respond to the needs of their market via a single product. Splitting Aldus into two divisions would allow them to focus on these different market segments. These organizational and product line decisions were made due to what industry executives viewed as polarization of software distribution. Telemarketers, mail order firms and superstores increasingly served the market, with the high-end served by boutiques that had the ability to provide after sales support, consulting, and needs assessment. Hardware sellers were becoming less viable as software dealers. Differences between Consumer and Organizational Markets The first difference between consumer markets and organizational markets has to do with the nature of purchases (Pride et al, 2012). Organizational consumers buy capital equipment, semi-finished goods and raw materials for utilization in further operations or for reselling to others while final consumers normally acquire finished items for household, family or personal use. Organizational consumers are also more likely to demand exact specifications of products. Final consumers usually buy on a stylistic and descriptive basis. Additionally, organizational consumers usually use multiple buying responsibilities where more than one employee participates in expensive or complex purchase decisions. Consumer markets ...Download file to see next pagesRead More
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