Marketing Function That Determines the Profitability of the New Smart TV - Essay Example

Introducing a new product in an already existing and active market requires the consideration of various features of both the market and the new product. Marketing refers to a management function concerned with the determination, anticipation, and satisfaction of the market demand. An appropriate marketing department should earn a product whether old or new a substantial size of the market capable of achieving the product profitability. Among the key factors considered in the market research, include the name of the product, the price that must consider the cost of doing business, and the profitability among other essential features of the market (Parente, 2005).

Marketing is an essential department in the introduction of the new product; the marketing team must carry out effective market researches and market analysis in order to determine all the factors that will influence the demand for the new product. This way, it advises another essential department in the company such as the production department on the number of products and the features to incorporate in such products in order for the products to gain profitability desired.The United Kingdom is a developed economy; this implies that the people have a higher purchasing power.

The smart TV market can therefore sustain yet a new product, which will compete effectively against the many other products currently in the market. However, such a market makes informed purchasing decisions. The consumers will therefore consider several features of the new product in order to ascertain the product’s appropriateness in the market. Additionally, the cost of labor is equally high in such a market (Homburg, Sabine & Harley, 2009). Coupled with detailed legislations requirement in the country, the cost of doing business may therefore become higher especially for a new company that seeks introduction in a market that has existed for more than a century with active participants.

AssumptionsAtlas TV is a new smart TV entering the market for the first time.