Marketing Management and Marketing Strategies in Modern Business Environments - Case Study Example

Marketing Management and Strategy Contents 1.0Introduction 2 Section 2 2 2.1 Overview of the New Product/Service 2 2.2 Product Industry/Market information 4 2.3 Characteristics of potential Customers/analysis of 4G, Wi-Fi dial smart phone consumer market 4 2.4 The 4G, Wi-Fi dial smart phone External Environmental analysis 5 2.4.1 PESTEL 5 2.4.2 SWOT 7 2.4.3 Porter’s five Forces 8 3.1.1 Product name 9 3.1.3 The products Packaging and its uniqueness 10 Section 4 10 4.1 Developing and presenting the 4G, Wi-Fi dial smart phone 10 The New Product BCG Matrix 10 The New Product Life Cycle (PLC) 10 Pricing Strategy 11 Promotional Strategy 12 4.4 Internal Analysis 12 Human Resources need (Manpower, organizational structures 12 Financial requirements (Money) 12 Materials (Production and product specifications, production point, factory issues 13 Conclusion 13 References 14 Appendix 16 1.0Introduction Marketing management and marketing strategies play a major and an important role in modern business environments (Hill & Jones, 2009). The variables are crucial for business management to combating challenges arising from the market forces, which stem from shifting and unpredictable political, technological, environmental, socio-cultural, legal, financial and economical dynamics (Capon, 2009). Product development is a critical process in modern day marketing management. Modern businesses are finding it fundamental to invest in encouraging development, implementation and monitoring innovations in product and service delivery (Coyne, & Sujit 1996). This report will highlight the process involved in product development, its market information and brand-related issues and analyze the marketing strategies that are in play during the process and the product’s external environment analysis. In addition, the report will seek to establish the product’s internal analysis. Section 2 2.1 Overview of the New Product/Service The new product is the 4G, Wi-Fi dial smart phone. The phone has features and packaged in such a way to not only make the life of the user easy, but also provide appropriate, effective and quality services to the user. The phone is 4G. This facilitates high-speed internet and broadband connection, thus saving the client’s time and money. Moreover, the Wi- Fi feature allows for locating and sending high signals to allow clear voice and messaging connections. The smart phone has a webcam, which allows the user to have an on time view of the caller on the other end. For business users, the phone can be easily connected to a PC, and thereby allow video conferencing which helps in conducting and transacting businesses over long distances which are vital, in creating new global markets. The phone has a GPS feature, which helps the user locate locations, premise, facilities, which are crucial in locating suppliers, retailers, distributors, existing and potential customers hence improving on supply chain managements. Using the GPS feature, it allows for smooth flow of products and services on transit hence minimizing costs arising from delayed deliveries. Entertainment wise, the 4G, Wi-Fi dial smart phone is, installed with software that accommodate GPRS services and the users are able to chat with colleagues, business partners, friends and families live, watch live stream videos, shows and concerts. In addition to the feature, one can easily connect live to an event without necessarily being physically there. This feature satisfies the needs of a busy user, who can monitor different events from one point. The smart phone features a high quality camera and video software whose video and photo clips can be, downloaded directly to a printer or a computer. The phone comes with regularly updating state of the art anti-virus software, to safeguard it against cyber attack and software viruses. The phone is water resistant. It goes without saying the need to have a phone that has a high capacity to not only store high capacity data, but is able to accommodate long duration talk times and hold as much as 4GB message content. The phone comes in two sleek colors. That is sleek silver and shiny black. The two colors are versatile to both genders. Due to the increased concern for the environment, the phone is, produced using green technology. That is, the phone is produced using renewable, recycled and energy saving raw materials. For its charging, the phone does not rely on power energy alone, but it has been, made to charge using alternative energy such as solar energy. Finally, the phone will be, installed with software that allows compatibility across any network across the world and accommodates e-commerce. This means a constant traveler or an international businessperson, does not need to change their handset every time they visit or go to new locations globally. 2.2 Product Industry/Market information The 4G, Wi-Fi dial smart phone, is a product in the telecommunication mobile industry, which currently, has elicited so much interest, as new technological solutions are developed everyday. The telecommunication mobile industry has been fundamental to the mass market as it has been able to challenge traditional ways of transacting businesses, has allowed for producers and suppliers have access to global markets and utmost has eased storage, retrieval and dissemination of business information. This it has done by narrowing geopolitical and social cultural boundaries. The mobile industry, in which the new 4G, Wi-Fi dial smart phone is, positioned, is presently keen to deal with issues of diminished participation costs, taking advantage of the gaps in the market to produce customized products to address specific consumer needs and addressing changes in customer relations. Therefore, for the new product to succeed in the competitive mobile industry, the features in the phone are, meant to address the specific needs of a modern businessperson who is always on the move, and needs to accomplish a lot within a short period of time and with least costs. The mobile industry is growing too fast, and therefore, business people need to tap the benefits that come with it. 2.3 Characteristics of potential Customers/analysis of 4G, Wi-Fi dial smart phone consumer market The new 4G, Wi-Fi dial smart phone is, produced to satisfy the needs and expectations of modern day busy and enterprising businessperson. The product moves away from imitating what other phones have, to creating differentiation. That is, a phone that not only offer basic satisfaction, but also goes a mile a head to make the life of the user interesting and productive beyond what a normal phone entails. Characteristics of target market are, known by analyzing the demographics (Rainer & Cegielski, 2009). The characteristics of the potential customer of the 4G, Wi-Fi dial smart phone are for entrepreneurs who may range from the age of 18 upwards, to understand the technical aspect of the phone they need to be computer literate and the phone is meant for both male and female. The phone will be accessible to the urban and peri-urban areas, and since it is a high- value and relatively costly product, the target market will include high and middle class customers (Haworth & Management Sciences, 1972). For verification of the characteristics of consumer market, test marketing and market research will be, conducted (Kotler, 1997). 2.4 The 4G, Wi-Fi dial smart phone External Environmental analysis 2.4.1 PESTEL PESTEL is a type of marketing analysis tool, where one analyzes and monitor the external pressures of the product. Political factors In production of the 4G, Wi-Fi dial smart phone, it will be imperative to comply with existing political guidelines and regulations and opinions of politicians. This is important because, mass market follow fashion trends set by their opinion leaders, and politicians falls under this category. Among other political pressures that relate to the product is the government attitude towards product innovation and business development in general (Porter, 1980). Production of the product will comply with tax, labor, and ecological laws. Economic factors This will entail taking into consideration economic factors that are going to influence not only the production and marketing of the phone but also distribution, delivery and consumption of the product. This includes focusing on the economic development of the region where the target market is, the current interest, inflation, foreign exchange, and employment rates (Rainer & Cegielski, 2009). For foreign exchange rates, they influence the expenditure for importing and exporting products, this will affect the 4G, Wi-Fi dial smart phone global distribution and marketing. Social factors In producing the 4G, Wi-Fi dial smart phone, analysis of socio-cultural factors is necessary. This entails taking into consideration the social elements such as health awareness of the labor force and the surrounding community, the target market’s population growth rates, importance given to safety issues and the attitudes of the target market (Timmons, et al., 2004). Technological factors Since the 4G, Wi-Fi dial smart phone is a technological product, it is essential to evaluate the technological changes and automation issues in order to produce a product that would not only satisfy the customer present technological needs, but also will still remain technically viable and feasible in the future. Technological factors if not paid attention to, the product will lack the appeal and not sell since the factors does influence quality of a product, costs and are considered as source for product innovation (Rainer & Cegielski, 2009). Environmental factors For the 4G, Wi-Fi dial smart phone, it is important to ensure the production, marketing, distribution, usage and disposal are in line with environmental conservation policies and guidelines. This is because the markets are currently environmental aware, and therefore they will shy away from products that are not eco-friendly (Porter, 1980). Legal factors The demand and cost of the 4G, Wi-Fi dial smart phones will also be, influenced by legal factors. Therefore, it is important to consider the labor and consumer laws in place, quality standardization guidelines and safety and health policies, to make the product a success. Legal factors will influence the workforce, the production processes and systems compliance to the mentioned laws (Porter, 1980). 2.4.2 SWOT SWOT analysis entails analyzing the strengths, weaknesses, the opportunities and the threats to the product (Chaman, 2006). Strengths -The phone is eco-friendly since it is, produced using green technology. That is, the phone is produced using renewable, recycled and energy saving raw materials. -For its charging, the phone does not rely on power energy alone, but it has been, made to charge using alternative energy such as solar energy. -the phone is water resistant. -The phone has a high capacity to not only store high capacity data, but also able to accommodate long duration talk times and hold as much as 4 GB message content. - The phone is 4G. This facilitates high-speed internet and broadband connection, thus saving the client’s time and money. Moreover, the Wi- Fi feature allows for locating and sending high signals to allow clear voice and messaging connections. Weaknesses -the phone is relatively expensive Opportunities -a copy model of the model that costs less to make can be, produced, which will be affordable to all - modifications to the phone can be made which entails installing a software connected to the office and to vehicles, to alert the owner when there is a break in or any disturbance Threats The main threat to the 4G, Wi-Fi dial smart phone, is international brands of phones that have the resources to make new and more innovative products when the phone is, launched into the market. 2.4.3 Porter’s five Forces The porter’s five forces as illustrated in Figure 1.1, indicates that the driving forces in a market influences the intensity and power of competition and hence determines the market’s profitability. The forces are the threat of entry of new competitors, the intensity of competitive rivalry, threat of substitute products and services, the bargaining power of customers and the bargaining power of suppliers. This report will put more emphasis on the competitive aspect of the five forces. For the new 4G, Wi-Fi dial smart phone, it will entail analyzing the entry barriers in the market, the costs of switching products, accessibility to distribution, and breaking customer loyalty to already existing products. When addressing the intensity of competitive rivalry, the production of the 4G, Wi-Fi dial smart phone ensures it sustains its competitive edge, and is useful to online and offline customers. The unique features of the phone cater for the threat of substitute product forces, and therefore, customers will easily and willingly, switch brands. Production of 4G, Wi-Fi dial smart phone that addresses specific customer needs and expectations is integral to addressing the bargaining power of customers. Finally, development of good relationship with suppliers will ensure on time deliveries of raw materials, hence improved process of production, which will ensure constant supply of the product in the market, hence building customer loyalty and taking charge of the bargaining power of supplier forces. Section 3 3.1 Brand related issues 3.1.1 Product name The product name is the new 4G, Wi-Fi dial smart phone. The brand name includes some of the features the phone has. This includes the 4G, the Wi Fi, and all features that are, in a smart phone. 3.1.2 Discussion on the brands superior value over competitors offering the current phones produced by the competitors who are international brands, have similar features, have favored the young people who are interested in entertainment issues, and thereby, alienated the business person. The new 4G, Wi-Fi dial smart phone seeks to break down the trend, and make the work and life of a businessperson much easier. Unlike majority of phones in the market, this phone can facilitate e retailing. That is, retailers can post their products and services online, monitor customer trend, and customers can read and post reviews, and order and purchase products and services on phone. The phone is considerate of current concern for the environment and its disposal upon usage, is safe since it can be recycled. The phone can be, charged using alternative energy supply such as solar energy. Most phones in the market spoil when in contact of moisture and water, but for the new 4G, Wi-Fi dial smart phone, it is water resistant. The phone can be, connected directly to PC, and therefore, user can conduct tele- and video- conferencing. 3.1.3 The products Packaging and its uniqueness The new 4G, Wi-Fi dial smart phone comes in two colors. The phone is, packaged using packaging boxes that are, made from renewable and recyclable materials. The packing boxes are, lined with water resistant and compact material that protects the phone from bad weather conditions and damages during transportation. Packaging is essential in attracting the attention of potential customer (Peache & O’Sullivan. 1988). Section 4 4.1 Developing and presenting the 4G, Wi-Fi dial smart phone The New Product BCG Matrix The new product BCG Matrix, allows the management to understand the life cycle of their product, since each level in the life cycle, there are varied risks and gains. For the new 4G, Wi-Fi dial smart phone, it is a high growth product and will initially require a lot of time, resources to develop production, marketing and distribution systems. the BCG Matrix categorizes products and services as illustrated in figure 1.2 as stars; which have high growth and high market shares, cash cows; they have low growths but high market shares, dogs; they have similarly low growth and market shares and questions marks; they have high growths and low market shares (Porter, 2008). The phone will begin as a question product but develop into a star, for it is, intended to indicate tremendous growth, be a market leader in the mobile industry, and accrue high amounts of profits. The New Product Life Cycle (PLC) This entails prior and continuous monitoring of the product. The product has four life cycle stages and by knowing that, producer understands how the products will perform, choose appropriate marketing strategies and mix (Rey et al. 2004). Thereby, offering products unique from competitors. The life cycle of the phone will be from the market introduction stage; where advertising and promotion is essential, and the growth stage - where consumers are more aware of the product and there is an increase in competition (Hitt et al., 2009). Then to maturity stage where the phones will saturate the market, and establish itself as a brand by creating consumer loyalty (Rey et al. 2004). Renewal of marketing techniques and strategies will prevent the 4G, Wi-Fi dial smart phone to move to saturation and decline stage. Since lack of innovation at the maturity stage leads a product to lose competitive advantage (Hill & Jones, 2009). 4.2 Price the prices for the 4G, Wi-Fi dial smart phone is 560 US dollars. This is to cover production, marketing and distribution expenses and ensure the product accrue good profits. The services offered by the phone if accessed elsewhere, the costs would triple. Pricing Strategy The pricing strategy used will be an integration of the skimming and market oriented pricing. Use of skimming is essential in covering costs of investments (Westkämper, 2000). This will mainly capture early adopters who can afford and understand the value of the phone. Market oriented strategy will ensue which is based on market analysis done from the target market (Hitt, et al., 2009). Setting the right price is a battle half-won (Smith, 2011). 4.3 Promotion For the 4G, Wi-Fi dial smart phone, the promotion will be the above the line promotional techniques which include electronic and press media. This is because this medium has a large mass audience hence the product will have a large coverage and create a large framework of awareness (Timmons, et al., 2004). Promotional Strategy The promotional strategy for the phone is use of media releases. Use of media releases reaches an extensive number of potential customers (Engel, et al., 2000). The media releases inform, educate, increase demand and indicate what is unique about a product (Westkämper, 2000). 4.4 Place (Distribution) Authorized retailers / dealers will distribute the phone. This is to prevent sale of counterfeit 4G, Wi-Fi dial smart phone and be able to monitor the product and the target customer. Distribution Strategy Use of exclusive distribution channels allows for easy evaluation and monitoring of products and target customers (Porter, 1980). 4.4 Internal Analysis Human Resources need (Manpower, organizational structures For success in any product and service delivery, having the right work force is fundamental (Lamb, et al., 2007). For production of the phone, it will involve putting in place knowledgeable, skilled and experienced workforces in all the concerned departments to ensure accountability and production of quality products. Good co-ordination between the top, middle and low-level employees will ensure communication and feedback is, achieved (Boone & Kurtz, 2010). Financial requirements (Money) In launching a new product such as this, substantial amount of finances is required for conducting market research, market testing, production, marketing and distribution of the phones (Westkämper, 2000). Since the product is, meant for global market, producing global capacity will need enough capital to not only kick-start the process but also in maintaining it. For the project, approximately 150 million US dollars will be, needed to facilitate development of appropriate systems and sustainable infrastructures. Materials (Production and product specifications, production point, factory issues The production plant will be located in Birmingham, UK and will have to comply with industrial guidelines in establishment of a new line of business. UK offers easy accessibility to market in wider Europe, Asia and US. Developed infrastructures ease production process. Contractual agreements between suppliers of eco-friendly raw materials will be, sought. Machines (office location, office requirements) The production plant will be at the outskirts of the city, but easily accessible to allow transportation and delivery of products. It will have ample supply of alternative energy, water, sewerage, security, and safety materials and systems. The production plant will require extensive space to ensure occupational health and safety and accommodate future changes to the facility (Boone & Kurtz, 2010). Conclusion Marketing management and marketing strategies are fundamental in developing and marketing a new product. Through the variables, the new 4G, Wi-Fi dial smart phone will successfully launch into the market. This entails knowing the target market, creating an awareness, establishing reliable supply management channels, using the right promotional and pricing strategies to appeal to the market, hence ease the diffusion, adoption of innovated 4G, Wi-Fi dial smart phone. As mentioned above, the phone is unique by being eco-friendly, offer high end data and voice services, is water resistant and a must have product for modern entrepreneurs who are keen to monitor the markets, customers, competitors and the products through its facilitation of e-commerce. References Boone, L.E. & Kurtz, D.L 2010. Contemporary Business. London: John Wiley and Sons. Capon, C. 2009. Understanding the Business Environment. London: Financial Times Prentice Hall. Chaman, R.J. 2006. Simple tools and techniques of enterprise risk management. Sidney: John Wiley and Sons. Coyne, K.P. & Sujit B. 1996. Bringing discipline to strategy, The McKinsey Quarterly, No.4. 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