The Research and Development department of your software company has developed a way of getting information from consumers about their buying habits. They have created an 'unmet needs list' that accurately anticipates future purchases. However, this information comes from the customers' use of credit cards and bank cards, causing privacy concerns to be discussed. After initial testing, it is found that this new software can predict with some 95 percent accuracy what product a consumer will likely buy in the next 30 days.
Senior management is optimistic about the product and has asked you to develop a marketing plan. Write a comprehensive marketing plan that identifies your market, establishes a price point, chooses a distribution channel, proposes a communication (advertising) venue, and identifies who will be the buyer of the product. Support your plan with sufficient research.© BrainMass Inc. brainmass.com October 17, 2018, 1:01 pm ad1c9bdddf
The product is software that accurately anticipates future purchases of customers. The product is a result of extensive research into buying behavior of customers and uses the information from their credit cards and bank cards. It can predict with little over 95 percent accuracy what product a customer would most likely buy in next 30 days.
2. Identification of Market Needs
Responding to customer's demand for more and better products, businesses worldwide are revitalizing the process of new product development, to ensure that the right product gets to the market quicker, at right time, and at right place (Yelkur & Herbig, 1996). In today's society consumers have less time for work or leisure. They seek convenience and ease of use from products. If the product does not save their time and is not easy to use, it would not be accepted by customers. Companies invest extensively on research and development to come up with new product ideas which would meet the latent need of the market. However there are resource constraints due to which it is not possible to take all product ideas to production. Hence, companies have to be very careful in what they offer to the market.
The software would come in handy for such companies. It would offer following advantages:
- Reduce the investment on research and development
- Reduce time to market
- Result in better chances of success
By focusing on accuracy of the software we can implement a niche differentiation strategy. Client can use the software to meet their customer's needs in an efficient manner without going through a long product to market cycle.
Pricing is one of the most difficult components of marketing plan. The price would ...
Different components of marketing plan for a new software have been addressed.
Current competitors and competitive landscape for a service
Marketing Plan: Phase II
Market segmentation is important to getting a new product off to the right start. This process is where the firm will identify consumer behaviors and attempt to segment the market to find the target customer for the product. Usually when the process begins, the firm decides the broad market its product is going to be marketed in, for example, Microsoft and Sony will market their M.S.N software to the gaming community. The gaming community is made up of all types of consumers all with similar and different consumer behaviors. This is a broad market because they all have at least one thing in common, an affinity for video games, but this does not mean they will buy the same products, play the same games, or want to chat while playing. This is where the segmentation process begins. When a firm begins segmentation there are certain criteria that are used to develop the segments: Homogeneous within, Heterogeneous between, substantial, and operational (Perreault and McCarthy, Jr. 2004). These criteria are used because they are considered to be known facts about the market. A Homogeneous market segment will all have at least one consumer behavior in common. A Heterogeneous market segment will all have at least one consumer behavior that is different throughout the segment. If a market segment is substantial, then that means the segment is large enough to provide the firm with a profit from sales. An operational market segment must provide enough data to formulate a marketing mix (Perreault and McCarthy, Jr. 2004).
In order to identify a target market, the Microsoft Sony partnership should take a combined target market approach. This means that there will be two or more submarkets with one marketing mix strategy to appeal to the entire group (Perreault and McCarthy, Jr. 2004). The two submarkets that Microsoft and Sony can appeal to with the M.S.N. software are the young and social gamers and the hardcore/professional gamers. To help the company determine the numbers and demographics in these segment markets Microsoft's XBOX Live service actually has a section where each gamer describes their level of play, from recreational to professional. The reason these two markets should be combined is that not all hardcore/professional gamers are young and social and not all young and social gamers are 'hardcore' players, some could be causal. By creating a social gamer target market, Microsoft and Sony will be able to develop their marketing mix to reach the exact market they feel will use their product most.
Consumer buyer behavior is the study of consumers help firms and organizations improve its marketing strategies by understanding issues. Some of the issues are as follows how the consumer thinks, how the consumer is influenced, the consumer's behaviors while shopping and the consumer's knowledge of a product (Marketing Teacher, 2009). By studying who would be interested in M.S.N program and knowing what will influence them to purchase for his or her family or self or business is a crucial step for Microsoft and Sony. The research that is gathered from studying the consumers/organizations needs and wants is what will sell the M.S.N. program worldwide.
Microsoft and Sony are rivals due to previous marketing strategies the makers of M.S.N program have now outreached to its customers and have gave them knowledge that the two companies are now working together to give gamers the ultimate gaming experience no matter which system they choose to purchase. By making this step Microsoft and Sony have opened the door to a wider spectrum of consumers and organizations that will be willing to purchase the program.
The consumers of the M.S.N. program will be individuals and families who are gamers. By marketing this program to both system users will allow the program to be useful. By marketing it to only individual and families of PlayStation3 owners or vice versa would defeat the program and will cause it not to sell. By reaching out to both system owners will increase how the product sales.
The organization's that will be a part of this venture will be any store that sells gaming systems and accessories such as Wal-Mart, GameStop and Target (including many others). The purpose of targeting these sorts of organizations is to get the product known worldwide. By targeting many different organizations will increase the products location and in turn increase the sales of the product.
By narrowing down the consumers and business markets that will be marketed to ensure the creators that marketing strategy is appropriate by incorporating all steps to finding the right consumers and organizations to sell the product to.
Marketing Teacher LTD, (2009), Marketing mix, what is marketing mix, Retrieved June 13 2009 from http://www.marketingteacher.com/Lessons/lesson_marketing_mix.htm
Perreault, William D., & McCarthy, Jr., E. Jerome. (2004). Basic Marketing: A Global-Managerial Approach (15th ed.). , : The McGraw Hill Companies.
Marketing Plan: Phase II Paper
Analyze current competitors and define the competitive landscape for your product or service.