Market Research and Targeting - Essay Example

The actual product is the physical product produced by WBC. Finally, the augmented product is the intangible part of the crystal clear, granite filtered mountain water. It is the added value of the product which can be in the form of the after-sales services provided by WBC after making purchases. Another value is the customer service support provided by the company.

Product Life Cycle

            The product life cycle theory divides marketing into four sections or stages. The stages include the introduction, growth, maturity, and decline stages. The crystal clear, granite filtered mountain water developed by the company has not yet sold the product. It means that the product is at its introductory stage.

BCG Model

            The Boston Consulting Group Matrix (BSG) is a marketing theory that helps in determining the group in which a product is based on how it is doing. The matrix assesses the product on two dimensions. The first dimension looks at the growth of the product in this market. The product produced by WBC can be described as being a basic need. It means that the growth in the market is expected to be high. The second dimension measures the product’s market share as compared to the largest competitor in the industry. The crystal granite-filtered mountain water has a low market share because it is new in the market. According to the analysis of the product, it can be classified as a Problem Child in the matrix, especially because it is a new product in the market.

Service Marketing

            Service marketing includes sing services provided by a company (Pride, 2010). WBC is currently selling a product, but it can gain a competitive advantage by providing after-sales services. These forms of services help WBC market itself to its consumers. It will also help the computer gain a reputation of providing the best customer service in the market. The advantages will in turn be seen in an increased sale of its products.

Price Determination and Pricing Strategies

            WBC must come up with the pricing objectives and analyze the market factors that might analyze the price of the product. Different companies have different pricing strategies. WBC can determine the price of the product based on the stage of the life cycle. The best pricing strategy for crystal clear, granite-filtered mountain water is the penetration pricing strategy. The strategy involves setting a low price for the product. The strategy applies to the company, especially because the product likely has many other competitive products in the market. The strategy aims to get a big market for the product. The method is also applicable because the product is new in the market.

Supply and Demand

            Supply and demand are one of the most crucial concepts in economics and forms the backbone of a market economy. Demand is the quantity of crystal clear, granite filtered mountain water that is desired by buyers. The quantity demanded of the product is the amount that customers will be willing to buy at a certain price. Supply on the other hand is a representation of what the market can offer (Adil, 2006). The quantity supplied is the amount of the product that Waters Bottling Company is willing to supply at a certain price.

The law of demand and supply is crucial for the company. It helps the company balance the demand of the product and its supply. It also determines the price of the product because the company will try to remain at an equilibrium price where there is a balance between the supply and demand of the product.

Competition

            Competition is crucial in balancing demand and supply. Water Bottling Company (WBC) needs to get what other companies in the market are seeking in terms of profit, market share, and sales. The information will help the company come up with the best strategy to gain a competitive advantage (Grönroos, 2007).

Objectives and Strategies

            While formulating a marketing plan, WBC must come up with the marketing objectives and the marketing strategy. The marketing objectives for WBC are to create awareness for its product and to increase its market share within the current financial year. These objectives are SMART because they are specific, measurable, achievable, realistic, and time bound.

            Marketing strategies give a more detailed blueprint of how Water Bottling Company (WBC) would achieve its marketing objectives. Strategies are specific actions that are required and need to be completed in a specific period. They mostly have several steps or stages, each having an expected timeline by which they would be accomplished. The management team of WBC is responsible for coming up with the marketing objectives while lower-level employees at the supervisory level are responsible for making sure that the steps are accomplished. The strategy is crucial for the organization because the lack of a strategy makes the marketing objectives intangible. Strategy and objectives rely on each other in making sure that the marketing plan for the company succeeds.