The Relevance Of Marketing Concept To The 21st Century Business Of Sony - Essay Example

? Explain The Relevance Of Marketing Concept To The 21st Century Business Of Sony Table of Contents Introduction of Sony 3 of the Marketing Concept of Sony 3 Introduction of Sony Electronics 6 Explanation and importance of the marketing concept applied in Sony Electronics in 21st century 7 SWOT Analysis of Electronics Segment 7 Porter’s Five Forces model to analyze the segment of electronics of Sony 8 Conclusion 10 References 12 Introduction of Sony Sony Corporation is one of the legendary Japanese multinational conglomerate brands operating successfully in the segment of electronic products, since 1946. It is headquartered in Konan Minato, Tokyo of Japan but serves the customers of worldwide. It was founded by Akio Morita and Masaru Ibuka and derived its name from sonus which means smart and well-dressed young men. It is one of the principal manufacturers of electronic products for both consumer and professional markets and grabbed the ranking of 87th in the year 2012 in the list of Fortune Global 500 companies. Although, Sony Corporation is the reputed electronics business unit operating under the parent concern named Sony Group that operates in many other operating segments such as Electronics, Motion pictures, Music, games and Financial Services (Sony Corporation of America, 2013). Apart from other segments, Sony is the unbeatable name in the sector of electronics and so Sony Group (Sony Electronics in the U.S.) is extremely famous around the entire globe. Thus, after Samsung Electronics and LG Electronics, Sony Corporation is a Japan-based corporate group concentrating mainly on the Electronics (such as AV/IT products and components), Game (such as PlayStation), Entertainment (such as motion pictures and music), and Financial Services (such as insurance and banking) sectors. This helped in enhancement of the total revenue of the Sony in the year to US $ 72.349 billion along with net income to US $ 458 million. Along with this, it also improved the brand image and reputation of the organization within the minds of the customers resulting in amplification of its equity and position in the market among others rivals. Description of the Marketing Concept of Sony The term Marketing is defined as an activity used to present varied types of products and services as per the demands and needs of the customers of the market. Other than this, it is a procedure of presenting the values and benefits of a product or service to its customers, so as to increase their awareness towards the brand or products. It is denoted as one of the most critical business functions entirely utilized for attracting a large array of customers. Other than this, marketing might also be described as a link within the society’s material necessities and its economic patterns of reply. This acts as a technique to satisfy these needs and wants through products and services thereby establishing long term relationships. Thus, in this technological age of 21st century the concept of marketing has changed slightly. In recent times the maximum extent of marketing takes place through online sites mainly through holistic approaches. Holistic approaches means marketing based on relationship with its target group of customers. Holistic marketing concept facilitates and accelerates the level of satisfaction by maintaining high end relationships with its customers through proper selection, distribution, promotion and pricing of goods and services. Therefore, on the basis of such approaches, the entrepreneurs choose the target markets and the type of products to be focused. Hence, such type of marketing helps to select the targeted customers, satisfy them, maintain relationships, stay in front of competitors and enhance its ROI and profitability. So, it may be depicted that, creating and maintaining good relationship with a customers is the most essential factor of today’s era that helps to satisfy targeted customers by enhancing their loyalty and brand image. Only then, all other components such as production concept, the product concept, the selling concept, the marketing concept of an organization might become fulfilled (Sony Corporation of America, 2013). Similarly, in order to retain the brand image and position in this competitive scenario Sony entirely altered its marketing concept. After performing market analysis, the management of Sony arrived in this conclusion that holistic marketing might only prove effective to retain its dominance in the market in long run (Sony Corporation of America, 2013). Holistic marketing concept is the most effective and efficient technique implemented by most of the larger and renowned organization to improve its sustainability in this age. It is a combination of relationship marketing, internal marketing, integrated marketing and socially responsive marketing. This is mainly because it is an age of online marketing where maximum extent of the products is sold on the basis of relationships other than product features. If the demand of a specific product need to be increased then it may be possible only through affluent consumer relations. If a single loyal customer purchases the product then the entrepreneur might hold a trust that he or she might recommend it to his peers or friends or relatives. In this way, the rate of sale and profitability of the organization might get enhanced resulting in amplification of its image and position in the market among other contenders (Sony Corporation of America, 2013). Holistic Approach Source: (Dogruer & et. al., n. d. .p. 21) Increase in Sales and Income of Sony in 2013 Due To Holistic Approach Source: (Sony Corporation of America, 2013) Introduction of Sony Electronics Sony Electronics Inc. is the organization that operates under the parent group of Sony Group mainly in the segment of electronics. It is headquartered in the region of San Diego of Calif. It is one of the largest parts of Sony Corporation of America, due to its huge range of customers and reputation in the entire world among others. Other than any other segment, electronics is the most influencing and effective one for the brand Sony. The up liftment of the brand took place mainly due to the implementation of varied types of strategies in the segment of electronics as compared to others (Sony Corporation of America, 2013). Therefore, the management of Sony is extremely proud due to the presence of 158, 500 employees, 64 billion $ sales, wide range of product lines and a very strong brand image and reputation in the market among other rivals. It is mainly due to the constant effort of the management to implement advanced R&D techniques and modern technologies to present innovated products and features to satisfy the needs and demands of the customers. Other than this, in order to improve its popularity it always tries to use innovative techniques to up-grade its product lines along with profitability and ROI as seen in the figure (Sony Corporation of America, 2013). Highest market share of electronic segment of Sony Source: (Sony Corporation of America, 2013). Apart from this, the management in this age of information technology utilized the concept of IT in production, sales, product designing and distribution as well to improve its pace of growth in the market among others. Similarly, it also concentrated highly over, network focused product strategy to improve the image and market share of electronic segment as compared to others. This acted as a blessing for the brand thereby up-lifting its position and demand within the minds of the customers resulting in improvement of the loyalty and relationship. It is extremely essential to retain its portfolio in the market among other rivals (Sony Corporation of America, 2013). Explanation and importance of the marketing concept applied in Sony Electronics in 21st century In today’s era, Sony is one of the reputed and legendary brands in the segment of electronics. It is mainly due to its strategy of continuous advancement. The management of this organization is always in a desire to present innovative technologies and features within the product lines so as to satisfy their requirements and inner desires. Apart from this, it also tries to increase its portfolio and market equity thereby amplifying the product lines and features of Sony Electronics. As this segment proved effective for the entire Group by winning the best photography award in the year 2012 among others and so the management decided to offer more concentration over this segment (Sony Corporation of America, 2013). SWOT Analysis of Electronics Segment Strength: Innovative products(Sony Corporation of America, 2013) Brand image Differentiated features High quality Weakness: Pricing International expansion Opportunities: The category of television and games is advancing rapidly Expansion of electronic segment (Sony Corporation of America, 2013) Threats: Rivals Global recession After analyzing the SWOT analysis of the electronics segment, it may be depicted that this segment is advancing at a rapid pace both in domestic and international market. So, the management tried to offer more concentration over this segment as compared to another one to remain competitive in the market (Moats, 2008, p. 12). Along with this, with the help of this segment, the Sony group might also maintain its reputation and position in the market among other rivals. So, they decided to diverse their marketing concept in 21st century to reduce their weaknesses and enhance the strengths and market share as shown in picture (Sony, n. d). Source: (Sony Corporation of America, 2013) Porter’s Five Forces model to analyze the segment of electronics of Sony Threat of new entrants: Comparatively low due to the implementation of high-end technology along with differentiated product lines (Dogruer & et. al., n. d., p. 23) Bargaining Power of the Suppliers: it is quite low as the brand enjoys to the presence of global supply chain facility (Sony Corporation of America, 2013). Bargaining power of the Buyers: it is quite high due to the presence of varied product lines of high quality and features. Along with this, the customers also enjoy the facility of online shopping from online sites. Threat of substitute products: it is quite low as most of the products of rivals are obsolete as compared to Sony (Sony Corporation of America, 2013). Rivalry among the existing competitors: it’s very high as there exist numerous rivals and the profit margins enjoyed is also extremely low (Kotler, n. d., p. 72). Therefore, on the basis of the above analysis, it may be clearly depicted that the scenario of Sony electronics in the segment of electronic is good but need to update its strategies to retain such a reputed image among numerous competitors and intense competition. Keeping this analysis in mind, the management decided to alternate its marketing concept in 21st century (Sony Corporation of America, 2013). To deter the threats of the electronics industry, it implemented the concept of holistic approach and online marketing. Holistic approach, entirely dependent over relationship marketing, which acts as the prime essence of this era is offered high concentration. And as online marketing is mainly used by the young and energetic individuals due to the introduction of social media sites, so youth marketing strategy and fancy colour tactics is used. So, that a friend after purchasing a specific product (Sony Vain) might recommend it to another friend and enhance the sale of the organization (Drummond, 2005, p. 9). In 21st century, Sony electronics shifted from the strategy of push based to trust based, that is entirely dependent on relationship marketing (No Author, n. d.). If a good relationship may be maintained with the customers, then he or she may retain with the brand for long run. Side by side, he or she might surely purchase the new products of this brand thereby retaining the trust of the company. In this way, Sony electronics might easily compete with other rivals by implementation of relationship strategy. Along with this, Sony electronics also tried to maintain selective pricing strategy on the basis of the features such as quality, style, users, purposes, performance and mobility so as to maintain the reliability and trust of the young customers and the relationship remains maintained (Clemente, 2002, p. 12). Thus, it may be depicted that the strategy of holistic or relationship marketing proved extremely effective in improving its profit margin, total sales and reputation of the brand in this global market among fierce competition as presented in the below figure. Products and Brand relevance in 21st century of Sony Electronics with others Source: (American Management Association, n.d.) Conclusion Conclusively, it may be stated that in order to compete with the intense competition and numerous rivals, relationship marketing concept is the most essential technique. It proved extremely effective for the organization of Sony Electronics as with the help of this, its range of customers may be enhanced along with total revenue as well. It also helped in amplifying its brand image and position in the market among others. Moreover, the amount of market share and value also enhanced resulting in amplification of reliability and loyalty of the customers to a significant extent both in domestic and international market. Thus, holistic approach or relationship marketing is one of the most essential strategies implemented by Sony electronics to retain its market equity and portfolio among other rivals. It also helped in reducing the threat of switch over towards other brands in this aggressive age. So, it is highly appreciated by all the members of this brand. 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