In order to develop a marketing strategy, it is necessary to achieve two main goals:
- To ensure that development of the innovative products assortment fits company’s marketing goals;
- To create the criteria for the assessment of the effectiveness of innovative products using such factors as sales volume, profit, competition, and satisfaction of consumers’ needs.
The smart card is the innovation of the Company G. A new product fully corresponds to company’s overall performance and supports company’s mission to provide its consumers with high-quality innovative electronic solutions.
Smart card has the following success factors:
– Useful characteristics and uniqueness;
– While developing this product, a company had clear understanding of market structure and consumers’ needs;
– The company had technical and production possibilities for the designing the innovative product and developing it into a real one;
– The success of the product is caused by the correspondence of the profit earned from the introduction of new product to the market with the one stated in the business-plan..
B. Marketing Objectives
1. The target market of smart cards is very wide. It includes computer users, financial sphere (bank, discount and telephone cards, electronic purses, etc), identification and digital television.
2. Marketing is defined by:
– Company’s possibilities;
– Customers’ needs;
– Marketing external environment.
Marketing department of the company has a duty to implementation control over four main elements of company’s operations (“marketing mix”):
– Developed goods (Product);
– Pricing policy (Price);
– Goods’ promotion (Promotion);
– Distribution methods (Place).
The Company G should achieve the following objectives for the implementation of four marketing strategies:
The objective here is to analyze the product by means of comparison of product’s parameters with parameters of products produced by competitors. Sales analysis allows making decisions about production volumes and profitability of the product.
The objective here is to increase the number of distribution channels through direct and indirect sales. Direct sales are conducted by the principle “order – production – sale”. Indirect sales are conducted through existing sales tools: advertisements, the Internet, etc.
The objective here is to take into account competition of the Company G with other companies while pricing. Pricing is one of the main factors in the competitive environment. Within the framework of developed price strategy it is necessary to choose correct pricing strategy, attractive discount systems as well as the price range for the maximization of profit and sales volume.
The objective here is to advertise the product in mass media and on the Internet to participate in world exhibitions of innovative electronic appliances.
C. Competitive Situation Analysis
1. The three way classification method of convenience, specialty and convenience services and goods significantly helps marketers in developing successful strategies in marketing. This is due to the fact that, behavioral pattern of buyers varies for the three forms of purchases indicated. According to the three-way consumer product classification system, smart cards of the Company G are non-food products of a constant demand with a long-term use. Like any other shopping good product, it is worth to ensure that quality, price, color and style are some of the factors which should be considered while making this product. Further, there will be the need to conduct constant advertisement through radio, internet among other as smart card is of higher value and bought infrequently as a result of its durability. The table below indicates the market impact of the smart card based on the consumer products classification system.
|Consumer Factors||Market impact|
|Planning time involved inpurchase||Considerable|
|Purchase frequency||Less Frequently|
|Importance of convenient location||Important|
|Comparison of quality and price||Considerable|
|Marketing Mix Factors||Market impact|
|Importance of sellers image||Very important|
|Distribution channel length||Relatively short|
|Number of sales outlets||Few|
|Promotion||Personal selling and advertising by both retailer and producer.|
2. The analysis of company’s positioning assumes the definition of its possibilities (a condition of assets, etc.) in the market depending on the dynamics of the environment. The analysis is conducted in two directions: company’s resources and company’s external position. A competitive position is especially important. The model of Porter’s five market factors is often used for such analyses. According to this model, the market position of the Company G is defined by its competitors, suppliers, consumers, new market participants, and product-substitutes.
These factors depend on a number of other interdependent parameters (a number of buyers, suppliers, and products-substitutes), which, in their turn, depend on a market segment, production uniqueness, etc.
During the analysis of the market and potential threats it is necessary to conduct a detailed analysis of key competitors. It will help understand the strengths of the company and think over possible actions of competitors when choosing a new strategy or starting new business. It is recommended to conduct PEST-analysis (analysis of political, economic, social, and technology factors) before SWOT-analysis.
The conducted preliminary SWOT-analysis shows that there is a possibility of closer cooperation of the company with clients and manufacturers as well as there is a possibility for integration and diversification possibility. The company can fulfill a smooth movement upward in a typical habitation and create new trademarks for different segments. There are two main strengths, which can be considered as the core competency when marketing this product. This includes the well-known trade mark and a positive image of Company G in society (participation in exhibitions, charity) and social corporate responsibility. As a result, the product will be readily acceptable as a result of high customer loyalty which prevails in the market. It is clear that, one of the threats is that of security of the cards especially as a result of cyber attacks, high employee’s turnover and problem with the quality of smartcards.
E. Marketing Strategies
General strategy of the company and its marketing strategy coincide in many respects. Marketing strategy cares for consumers’ needs and company’s ability to satisfy them. The same factors are defined by company’s mission and goals. Many concepts of marketing, such as market share, market development and its growth, are used in strategic planning of the company. It leads to a situation where it is difficult to separate strategic planning from marketing. In practice, some companies sometimes call strategic planning “strategic marketing planning”.
This is the final vision of a given product as it indicates the way in which the product will be accepted in the market. It is crucial to note that, the marketing strategy of the Company G is based on three complementary approaches: strategic and operational. Strategic marketing is a regular and constant analysis of requirements of key groups of users. It also involves development of the concepts of effective services allowing the company to serve chosen groups of users better than competitors and thus providing the users with a steady competitive advantage. The other strategy is the one dealing with diversification. There is a need for management strategy development, which should begin with goal-setting and enterprise strategy and then proceeding to the development of purposes and a marketing strategy.
As a result of increased competition, there is the need for the company to adopt penetrating pricing strategy. This way, it will be easy for the firm to attract a large number of customers, thus higher profitability. The other strategy is the skimming pricing strategy in some markets. The other pricing strategy to be used is the psychological pricing, since it can make the smart card to be seen as less expensive in comparison to that of competitors.
The analysis of company’s positioning assumes the definition of its possibilities (its assets, etc.) in the market depending on the dynamics of environment. The analysis is conducted in two directions: analysis of company’s resources and company’s external positions. In order to do it, it is necessary to achieve the following goals:
To differentiate and estimate both off-shore markets and competitors (“the double standard”). The analysis should be implemented within the limits of a domestic market;
2. To analyze competitors and estimate their stability and potential. Here it is important not to overestimate company’s own possibilities. Managers in work often find themselves in a situation when the company, having developed a new product, estimates its operational characteristics at the level of the best world analogs.
3. To take into consideration the weak signals (threats and risks), which can play a pivotal role in company’s development in the long term.
The essence of the Company G’s strategic marketing is the strategy, which is developed within the limits of strategic planning. For example, enterprises of average or big sizes try to enter the market with the product without having a strategic plan. There is a need to develop a marketing strategy, which should begin with the goal-setting and enterprise strategy and then proceeding to the development of goals and marketing strategy.
The main three strategies for the Company G are:
- To expand into the world electronics market;
- To increase the quality of the product;
- To identify competitors of the company and to take necessary measures to be more effective than competitors in the market.
It is clear that, the above strategies will be of great importance for the firm to effectively market the new product to the market. By improving the quality, it will be easy for the smart card to effectively become acceptable to the potential customer as quality has a significant importance. By indentifying the competitors, the company will be able to conduct competitors’ analysis, a factor that may help in improving its products and level of service delivery in the future.
F. Tactic and Action Plan
There is an action plan, which will help the Company G to become more competitive in the market of technological innovations. The action plan is important for the Company G to go through qualitative changes.
Action plan is the document containing measures and actions necessary for the implementation of marketing strategies in practice. The action plan for following three years (2012-2015) for Company G includes the following steps:
G. Monitoring Procedures
Monitoring procedures should include the marketing control, namely:
- The implementation of definite company’s goals;
- Access to the information of the marketing researches of the innovative product;
- The assessment of the work of company’s personnel.
The Company G can become an effective organization if it keeps close attention on six key aspects:
• Goals and strategies (mission, goals, strategy, resources and restrictions);
• Business processes (values);
• Structure and roles (distribution of powers and responsibility);
• Personnel (motivation, knowledge and skills);
• Culture and norms (what rules regulate interaction inside and outside the company: management style, values and norms);
• Team consistency (allows employees to cooperate effectively and to develop successfully).
The recommendations for the Company G in order to make it more competitive in the market are:
– To decrease prices for turbines;
– To implement the advertizing campaigns in order to cover the most parts of the world market;
– To expand delivery channels to various geographical regions by means of creation of affiliates in the regions.PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT!
Is this the question you were looking for? If so, place your order here to get started!