Analyzing the Market Environment
Question:
Discuss About The Antecedents And Consequences In Proceeding?
The company brought a new product to the market which was hand wrist watches. They reintroduced Swiss made ‘luxury brand’ by Michel Parmigiani. Their main aim was to ensure a great competitive edge in the marketing and thrive internationally. The goal was to ensure brand loyalty and brand equity to enhance continuous purchase. For this to be established they have to ensure the market environment is favorable. A market research was imperative to determine the customer’s preference so as to help gain a competitive advantage in the market (Shaw, 2016). The 4 Ps of marketing must also be well strategized to ensure the new product penetrates into the market. All these are significant for a successful marketing plan.
Having known the type of product you want to offer to the market, look deeper into the business by analyzing things like the internal and external business environment, location of the business, the business structure, how to market the products and the business operations (Armstrong, et.al., 2015). Moreover, do a SWOT analysis.
Your target market encompasses your ideal customers. Do some research on the target market so as to know their preferences and expectations. This will enable you to channel the product production to their satisfaction.in addition to that, do a consistent research to know the changes in their behavior and priorities. This is crucial in establishing good marketing strategies.
Definitely, there are other companies producing a similar product and these are the competitors. Being that the product is new to the market, you have to ensure you are unique. You must analyze what the competitors do and come up with a better idea than that so that you can win the customer’s preference. This will help the company gain a competitive advantage.
These are the objectives that you need to achieve through a given period of time. You need to set achievable goals. The goals will motivate you to achieve the set standards. They will help in determining the success or failure of the business in the long run.
After setting the goals you now need to outline the strategies of achieving these goals. A bigger part of this involves the creation of awareness whereby you determine which type of criteria you will use to reach the customers, the advertising tools used to get to the customers and the channel you will use to reach them (McDonald, & Wilson(2016), 2016). In this case, online marketing will be the best way to get to them.
Target Market Preferences and Expectations
At this point, you have to be very cautious. Determine how much will it cost you to produce those goods, how much you will use to market and promote the products so that they sell out and finally where you are going to get that money.be careful enough not to outdo your capital (Chernev, 2015).
After all the above steps have been accomplished you are now ready to start the work and be careful to follow each strictly.
A SWOT analysis is an evaluation of the strengths, weaknesses, opportunities, and threats that the business is exposed to.
These are the attributes that may add value to the business and are within the control of the organization (Hollensen, 2015). They are the distinctive features of the business that leads to great customer satisfaction hence increased sales. They include;
- Affordable prices
- Ensuring salespersons have good knowledge of the products and have good communication skills.
- Ensuring excellent marketing strategies
- Offer warranty to customers.
- Unique features with great benefit to the customers
- Use of the best distribution channels with minimum costs
- These are factors that tend to hinder the ability of the business to thrive and are within the control of the organization. They include;
- Limited resources
- Poor customer services
- Lack of expertise
- Stiff competition in the market
These are the external factors that present themselves to give your business more chances of success. The organization should take advantage of these opportunities. They include;
- Since it is a new product in the market, set prices a little bit high to show how classy the product is and so that the first class people try and let others know about them.
- Get celebrities to be your brand ambassadors. This will lead to high sales since so many people love to associate what celebrities use with class hence the masses will follow to buy.
- Take advantage of the media to advertise the product with eye-catching ads so as to create broad awareness of the product.
These are the external constraints of the business success. Since it is a new product, after its launch the competitors will react to protect their business. They include;
- Stiff competition in the market for example competitor launching a new advertising campaign and providing better offers at reduced prices (Brooks, Heffner & Henderson, 2014).
- Unfavorable government regulations
- Inflation
- Increase in price by the suppliers
- Political instability
Competitor analysis encompasses consistent monitoring and evaluation of what competitors do so that you know their next move hence enabling you to always stay a step ahead of them (Fleisher, & Bensoussan, 2015). Competitor analysis involves;
- Identifying your competitors and grouping them- identify your competitors and group them in the order of primary, secondary and tertiary.
- Dig deep into your competitor’s website- try and find out how they run their business through their websites by checking things like promotion, positioning, and their product descriptions.
- Identify their target market positioning- know how they position themselves in the market by making their products unique for customers to prefer them.
- Pricing- determine their price range to help you in determining the prices of your products.
- Review their social media accounts- this will help you determine whether your products are highly marketable or not depending on the followers and if they are actively involved.
The mission of Swiss made ‘luxury brand’ by Michel Parmigiani is to provide quality and classy watches for our esteemed customers is that our customers are our first priority. We value our customers and for that reason, we want to improve their dignity and self-worth. Our aim is to make profits so that we can give back our investors high returns so that they ensure continued growth for quality products. Our company ensures job satisfaction and provides fair compensation to our employees.it creates a conducive environment for both the employees and the customers.
Set 3 marketing objectives and 3 financial objectives achievable within the first 6 months of the product launch
State the differentiating feature of your product that is not present in the competitor’s product. This will attract customers to give it a try and compare it with the other products they are used to.be sure to employ a quality feature to the watch that will make the customers stick to your product and purchase more and more (Katsikeas, 2014).
Competitor Analysis
Establish potential early customers. The early customers who will give the product a trial will determine the number of customers you will get. The early customers have the potential to influence other people to buy your product. In order to influence more early buyers, you can provide incentives to buy early through sales promotion.
The company’s brand is the trust they can offer to their customers and so it is imperative to establish and build your brand. Establish the company’s name and its logo, quality, price and the experience they will get from using your watch. Branding is essential in improving the relationship between the customer and the product.
It is the goal of every company to increase sales so as to ensure profit maximization. The company will have a given range of sales expectations within the first six months of the launch. This will depend on how the product will pick up in the market.
The company’s main objective is to maximize profit. This is achieved through minimizing costs and maximizing profits (Bodie, 2013). This will be determined by the sales volume that will be achieved within the first six months of the launch.it will be positive if the product penetrates well into the market.
Since the product is new in the market, advertising is an essential element so as to ensure its penetration in the market. The cost of advertising the product should be limited through the channel of advertisement should be reliable. This will help in reducing the overall cost of production hence giving room for more profits.
Formulate a detailed marketing mix strategy and place particular emphasis on a digital marketing communication plan
An effective marketing mix strategy involves the 4Ps of marketing (Menon.et.al., 2015). They include;
These are the goods that the company offers to the customers to satisfy their needs and wants.in this case it is the watch. The company must ensure an efficient product mix. The company must ensure that it markets these watches in a digital platform showing all the varieties available for example the social media so that many people can access the products (Coles, 2014).
This is the amount set for the product in the market. Effective pricing methods should be used to set the price of the watches. The company should ensure a price set is not way above or way below those of the competitors. This can be ensured through a research on the competitor’s products. The company should then create its website with well-detailed prices of the watches (Sheth, & Sisodia, 2015).
Establishing Achievable Marketing and Financial Objectives
This is the exact location of the product.it involves the retail shops where one can acquire the watches. The company should ensure their products are brought closer to the target market. The company should ensure that they indicate on an online platform the places where the customers can find their products.
This is the criteria the company uses to create awareness of its products to its customers. There are various modes of promotion like advertisement and sales promotion. The company should consider the digital platforms in advertising its product like social media to create more awareness (Baker, 2014).
Present action programs designed to achieve the marketing and financial objectives
If the financial resources are used adequately, then there will be no waste involved and unnecessary budgets hence this will help in achieving both financial and marketing objectives of the company like profit maximization.
A proper budget plan will help you know the profit and loss that is expected over a given period of time.it ensures the company’s accountability for its expenses and income hence this is a good drive to achieving the financial and marketing objectives as the unnecessary expenses can be trimmed off the budget (Brigham, 2014).
This involves the prior plans of what is expected of the company, the responsibilities of each staff and the achievements that are projected in the long run. If proper planning is done in time then it will help the company achieve its objectives.
Accurate financial models will produce accurate financial projection hence accurate analysis in the long run. This will be of great significance to the company in achieving its objectives.
Implementation and control process involves the company ensuring achievement of its strategic objectives. Implementation involves the actual activities that the company will engage in to ensure it accomplishes its strategic objectives (Ahearne, et.al, 2014). For example launching a website, engaging in different ads so as to create awareness of its products, doing some promotion and engaging customers directly. You should be keen enough at this stage because it ensures marketing activities are in place. After the implementation process evaluation should be done. Both quantitative and qualitative analysis should be done to ensure they are on the right track. If there exists some mess then changes can be made at this point. During the evaluation process control is necessary. It illustrates how appropriate the plan helped in the achievement of the goals. The control tool is the marketing revenue and expenditure and market share.it is essential in ensuring profitability and efficiency.
Conclusion
When a new product is launched into the market a proper marketing plan should be established to ensure its penetration into the market. A proper plan will lead to the success of the company through achievement of the strategic objectives set by the company (Czinkota, & Ronkainen, 2013). Other marketing activities such as strategies of marketing, planning and implementation and control are used to enhance achievement of the set objectives. Marketing is, therefore, a very important aspect of a business organization to prosper.
References
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