Principles of Marketing

Introduction

As part of unit 3 AVCE we have been asked to market a new product in a certain market. In order to do so we have to carry out market research to see whether the product has a potential market and whether or not it will be a successful product.

The product I have chosen to introduce is a voice-activated microwave. This appliance can be controlled manually or by using voice commands. The company I have chosen to manufacture the product for is Sharp.

In order for me to gain knowledge as to how successful the business will be I have to carry out market research. This market research will tell me how successfully the product will sell if it was to go on the current market. To do this I need to carry out primary and secondary research. This data will tell me about the type of product and whether there is a potential market for my product.

Principles Of Marketing

Understanding Customer Needs

In order to anticipate change, Sharp to have an antenna that is highly sensitive to changes taking place in the buying population.

They need to look at:

The age structure of the population?

Tastes and preferences?

Incomes?

Market research is needed for organisations to gather information on the potential market for certain products. This is a vital aspect of all business if they are willing to succeed in their market. Sharp need to understand information on the target market to have a successful marketing mix. Market research is a cost-effective way of finding out what people want. Sharp should manufacture products that have a high chance of succeeding in their market. When the product is launched a carefully researched product stands less chance of failing.

Communicating With Customers

I will communicate with customers in the form of questionnaires and interviews. This will give me knowledge about the potential market. Using this I will have a larger understanding of what the customers want from their products.

The various tools used to communicate effectively with customers are called the promotional mix. This consists of the two following areas:

Controllable

Non-controllable

Controllable communication is a type of communication a company may use in order to achieve their promotional objectives. These may include advertising, direct mail or sales promotion. This type of communication is used by Sharp to make potential customers aware of their products. They do this mainly through advertising which helps the them to increase their sales.

Non-controllable communication is marketing messages that occur due to word of mouth, personal recommendation or consumer's views on a certain product. This type of communication is a type that cannot be influenced by Sharp. They cannot change the tastes and needs of their customers.

Constraints on Sharps Marketing Activities

All companies including Sharp are faced with marketing constraints. These can alter a smooth path for organisations to achieve their marketing goals.

Internal Constraints

Internal constraints of marketing relate to the resources that a company can use. These constraints involve areas inside the business, which can affect their progress in achieving their marketing goals.

One of the main constraints of achieving successful market research is the monetary issue, which can affect a valid and wide field of information. Due to the fact that a large amount of information is required in order to gain substantial knowledge of the market, the amount of money a company has to spend will be high. I need to carry out market research in order for me to understand what the market want from this product. This will cost a lot of money for the company. However, if market research is carried out successfully the profit should ensure that the money was well spent.

Another main constraint is the amount of time it will take the company to gain the large amount of information they require. This is because it is extremely time consuming to carry out the questionnaire to a high standard. This has to be completed to high standard because information is needed for Sharp to gain sufficient knowledge on their target market.

External Constraints

External constraints are when continuously changing factors outside the company have an affect on the businesses way of operating. These areas are areas that are uncontrollable within a business.

A major external constraint for Sharp and my product are the rapidly changing tastes of customers. This will mean that my product may be doing extremely well but because the customers begin to dislike it sales will go down.

Another constraint is the development of major competitors and their products. My main competitor is Panasonic. If they were to produce a newer version of the product on the market, I would lose sales of my product. This means I would have to develop a newer version, decrease prices or increase advertising. This is a major constraint to my product because you can never judge a competitors action.

If the economy is on a fall it will have a similar affect on sales of my product. When consumer spending and wealth is on a low, customers will not have enough money to buy my product. This will cause a decrease in sales and consequently Sharps market share.

Keeping ahead of Competition

In order for me to stay at the forefront of all my competitors I have to ensure that I keep a close eye on their strategic pricing and their marketing moves. By doing so I will have a larger understanding of my competitors and can begin to judge their moves.

Say for example, a similar product was produced and released on this market by Panasonic. I would have to ensure I watch and analyse the prices they charge for certain