What are target markets? How would you determine the target markets for your new product or service? What are the advantages of developing specific market targets for a small business?
What are target markets? Target markets are specific populations that organizations seek to attract to their product. A specific type of market that they assume will purchase their product. In order to do this the business must first evaluate the market segments based on how these things substantial, accessible, actionable, differentiable, and measurable the markets are within the area. If I were selling a product I would have to determine whether or not it was too large or too small to effectively gain the traction needed within that market. As the owner of this product I would have to have access to the market and physically be able to sell the product within that market. We would have to think about the cost of the product and how much it would cost to market in that area. Some areas of the market are costly. Some of the advantages of developing specific market targets for a small business would include a strong reputation that serves their customer’s . You also have to find that niche within the market that attracts the customer’s to your doorstep and then you have to keep them interested in the product and show them how it will benefit your customer.
3) What factors might allow a brand a potentially long life? What roles might product functionality and product design have on brand success? What advantages might a small business have in developing a branding strategy over a large business? What disadvantages?
The factor is which might allow a brand a potentially longer life within the market would be quality, customer satisfaction, and the cost of the product. If the product that the company is marketing is functional and is top notch with no mistakes the success of this product would be beneficial to the company. One of the things that the business has to look for is whether or not a competitor is selling the product for a cheaper price. Although spending less does not guarantee that the product will work. The hope is to make sure that the consumer will purchase this product again from your establishment. In any business the success of a product depends on consumer satisfaction.
Something else that the business or company needs to look at during the marketing process is the brand of product must be taken into account and that there will be different outcomes to the end result of the product. Small business may have an advantage with developing strategies over the larger businesses because they have more room to experiment with the product. When a business starts out on a clean slate they are able to see what they can perfect about the product to entice customer’s to purchase their products over and over.
How might you refine broad market segments into focused target markets? Discuss at least three ways that you might segment markets when developing your target markets
By refining broad market segments we would break them down into different categories. Which is refined into a more focused market that would possibly look like a family tree. I have done this with my family tree. By breaking it down in sections allows us to see the broader part of the market that we are trying to sell our product too. Which will allow the owner to see what type of customer you are. Who made the product like the manufacturer which if they were interested in your product for promotional purposes. If car owner was interested in your product for recreational use of the product. The retailer would like to use your product to make a profit within their establishment. By dividing the product even further in the broader markets we are able to see the difference in monetary departments. Many business like these want to know how big the product is and what type of incentive it has to entice customer’s to purchase the product within these broader markets.
What is the most important thing to consider in new product development for a small business? Explain why. Is it necessary to evaluate the new product idea at each stage of the development process? Explain why or why not.
You know many of the products that I have bought over the years do not keep up with the standards of products that have been around for years. In a small business you have to make sure that the product is safe for the consumer. If the product does not meet the customer’s standards they will not endorse the product to anyone else but more than likely will give you a bad review on the product. Larger companies do not really worry about whether or not a product will pass or fail. When a company is considering developing a new product it must be sure that the product is “highly desirable, feasible, and cost-effective” (Kotler and Keller 2009). The product must catch the eye of the consumer in order for them to purchase the item. Many of the products that small businesses are coming out with now are feasible and consumer’s will purchase them. Look at the different types of cell phones and how many people purchase this product. It is feasible to the consumer and they are willing to take the risk on purchasing the product. The products must be cost effective in order for the business to make any money off of it. If customer’s are interested and it is marketed right the consumer’s will fly into the store to get that product.
Within any business there are five stages in which a new product is adopted awareness of the product the consumer must be aware of the product that the business is marketing. Interest in the product the consumer must have an interest in the product for them to buy it. Evaluation some businesses will use this to let the consumer evaluate the product to see if it meets their approval. Trial is when the product will reach the shelves of the small business to see how well the product will sell. The last stage is the adoption of the new product onto the small business shelves. Consumer’s will not purchase products that do not meet their needs of that product. I know from experience that many of the products that I have used have not met the standards that they should because of the rush to get them on the store shelves. In my opinion the consumer will adopt and use the product or service from the time that they buy the product. Some consumer’s will wait for the product to get out all of the kinks so that the product produces more than the first batch of the product.
By having an effective marketing plan that is influenced by the customer’s and the wants or needs of those customer’s. The importance of customer feedback is something that is very important to any and all business’s. To get the right feedback about the products or services that are offered within that business. Designing products are made with the consumer in mind because the product is what the customer is asking for. Marketing the product or service will influence the consumer to buy the product and that is what the business is shooting for. The consumer’s have to have faith in the products that they buy or they will not purchase them. If the product or service does not meet the consumer’s needs they will find it somewhere else. Positioning the product is another important factor that must be taken into consideration in order to maximize the profit of those products or services. Once the target market and motives are identified the effective marketing plan can influence the consumer’s that purchase the products or services. Earning the customer’s trust is the key issue when building a solid foundation of products or services that are offered to the consumer. Without an effective marketing plan the product or service could not be profitable to the company.
Generic strategies require specific skills, organizational arrangements, and resources in order for a successful implementation for the business. Starting a business requires a lot of research, and examples along with notes. Small businesses are looking to keep the costs low but also keeping the quality of the products in tacked for the customer. Even for a aqua phonics greenhouse there is countless research materials that have to be looked at to determine if the business can survive with these types of strategies. Low cost and differentiation are what businesses are looking for when they think about generic and grand strategies. Generic strategy models are perhaps the most prevalent conceptual approach to competitive strategy today (Porter 1980, 1985; Miles and Snow 1978; Miller 1986).
Grand strategies is a strategy that provides a basic direction for the specific strategic and functional tactics of the business. Some of the grand strategies are used so that the business can reinforce each other. These grand strategies are also called strategic thrusts companies can address quality, price of the products, and they need to value the customer’s regarding issues that they might incur. Grand strategies concentrate on increasing sales of the current products or services that they offer with the current distribution channels that they have in place for their business. If the economy or environment is unstable this would increase the risks for that business. An example of a business that uses the grand strategy would be McDonald’s. when it comes to marketing business’s will market the current products or services that they offer by changing the advertising or promotions that they offer their customer’s. With the example of McDonalds they send out coupons to all residences that offer some of their products to the consumer at a discounted price or some buy one get one free to entice the customer to come in and spend their money. Listening to the customer’s and what they want or need from your business is the key to having a successful business.
Miller, D. (1986) “Configurations of Strategy and Structure: Towards a Synthesis,” Strategic Management Journal, 7, pp. 233-249.
Porter, M.E. (1980) Competitive Strategy: Technologies for Analyzing Industries and Competitors. New York: Free Press.
Porter, M.E. (1985) Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.
Miles, R.E. and C.C. Snow (1978) Organizational Strategy, Structure and Process. New York: McGraw-Hill.
What role does social responsibility play in the development of a new product or service? What types of ethical questions must you consider when introducing a new product or service?
Social responsibility plays a very important role in the development of a product or new service within a company or business mainly because it focuses around the better part of the aspects of the business. Within the marketing business the social responsibility by increasing the customer expectations, having a tighter government, the legislation and pressure of marketing within the business, or evolving employee goals and ambitions within the company. When a business introduces a new product or service it must be done carefully to avoid the detriment to society and protect the rights of everyone that is involved with the planning and implementation of the product or service. Ethics also plays a role when introducing a new product or service for a business and also includes the consumer as well. Employee’s should be held responsible for any unethical behavior towards other employee’s or customer’s as well. Many times people do not stop and think about what they are saying or talking about in front of the customer. They do not think about the consequences of their actions or words. I have seen and heard it all being a server and let me say this that people are not shy about talking about their lives and what they do.
Which components do you think are the most important when developing a marketing plan? Explain why. Discuss at least three key components
In my opinion the most important components of developing a marketing plan would include the marketing strategies, a situation analysis, and the SWOTT analysis. All of these components are useful within the business setting for a variety of reasons. With a SWOTT analysis the company is able to see whether or not the product or service is doing well and fitting in with the latest trends within the market. By having this type of component the company is able to see where the weaknesses are for that product or service so that they may act quickly in resolving any issues that may arise. When it comes to the situation analysis which is another component that company’s should use in order to know what the macroeconomic or social factors may be before creating a newer product. Also by having marketing strategies in effect will allow the company to see the demand of the product so they might be able to bring in some profits from the product or service that they have created. Marketing strategies are another component that businesses will use in order to maximize their profits. Every business has to compete to stay within the market. Which means they have to constantly keep checking their product or service for the better of the consumer.