Research Korner: Trap-Ease

MARKETING A NEW PRODUCT - A Marketing Term Paper Example

src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> Introduction With the advent of globalization, innovation is the key and the bases of staying on the competition. Businesses believe that innovation, in the form of new processes, products, machineries, and techniques, is essential to the continued growth of a company. More new products are being developed to replace products that have been with us only a few years. As technology gets better, there are more upgrades to these new products (Trias de Bes & Kotler, 2003), such as the Trap-ease mousetrap which is designed differently from the usual spring mousetrap. True, there are many new products being introduced to the market but not all of them have succeeded in their market entry. Some of them, like in the case of Trap-ease have started to become a failure. Thus the company needs to rethink its marketing strategy.   Marketing of a New Product             For most people, the interesting question is what is going to happen next on the marketing plan. For producers, this is important because they have to make entry, product positioning, marketing and other business decisions; for consumers, it is important to understand whether investments made in what is on offer today will be made obsolete by what comes tomorrow (Geroski, 2003). A product's Market Perceived Quality is a driving force that increases market share. They further it is argued that when superior quality and large market share are both present, profits are virtually guaranteed, changing the "competitive positioning" of the product (Reddy, 1994). Marketing plan strategy is very important for any organization as it offers the direction the organization would like to pursue to attain its objectives. In the recent years, the integration of strategic planning and functional marketing has been perhaps the most relevant development in the field of marketing management as marketing managers have all the more realized that tactical marketing decisions must be made within a wider strategic framework. In addition, it is necessary that management of the marketing function be built upon purposively defined and analytically based marketing strategies. Strategic marketing planning offers the analytical process which develops efficient marketing strategies. The strategic marketing planning, according to Allen (2006), involves basically three stages: (1) segmenting the market; (2) profiling the market segments; and (3) developing the market segment marketing strategy. Marketing departments had the use of large budgets to develop and launch new products, and educate and communicate with consumers toward generating product trial, repeat purchase, and brand loyalty. However, some of these companies did not use the right strategies and therefore they have experienced failures in the launching of their new products. Before creating a new product, needs identification and segmentation of market should first be done. This is to see if there is a need for a certain product before it will be created or produced. Marketing starts by studying consumer needs and consists of knowing how to satisfy them. Yet many manufacturers forget to focus on needs and instead focus only on selling their products (Trias de Bes & Kotler, 2003). In the case of the Trap-ease mousetrap, it is created for the need of new mousetraps designed for women consumers as target consumers. After analyzing the market segments, customer interests and the purchase process, the firm must then establish the strategic marketing plan. This strategic marketing plan document usually constitutes (Allen 2006): (1) situational analysis – Where is the company now? – i.e., characteristics of the market, key success factors, competition and product comparisons, technology considerations, legal environment, social environment and problems and opportunities; (2) marketing objectives – Where does the management want the company to go? – i.e., product profile, target market and target volume; and (3) marketing strategies - What should the initiatives be taken in order to attain its objectives? – i.e., product strategy, promotion strategy, pricing strategy, distribution strategy and marketing strategy projection. The starting point in selecting targets for established products and services involves the examination of current users. The logic for this focus can be explained in terms of current understanding about how people make decisions. In response to brand information, consumers access their own knowledge about a brand and relate it to new information presented by some marketing effort. This depiction suggests that current users should be the center of focus because their status as users makes them likely to activate favorable associations to the brand and thus be attractive candidates to repurchase the brand. Following this strategy, the goal is to increase brand consumption by prompting its greater use by current users. Retaining customers for an extended period is demonstrated to have a significant positive impact on profits (Iacobuccid, 2001).             Level of use is also often the basis for refining the segmentation strategy. For many brands, it is appropriate to focus on heavy users rather than on the broader category of all users, because heavy users of a brand often account for a disproportionate share of a brand's volume and thus are worthy of special focus (Reddy, 1994).             When a product category has slow growth, targeting competitors' users may be a viable strategy. The success of this strategy depends on the firm's ability to convince consumers of the superiority of its brand in relation to the incumbent. For example, Pantene was able to expand its market share rapidly by providing visual demonstrations of the brand's superiority in leaving hair shiny. Consumers found "shiny" to be a compelling way to say "clean and manageable" (Iacobuccid, 2001).             Point-of-entry targeting typically involves a narrowing of the target to those users who are entering the market. When this target is deemed to be too narrow, point of entry can be deployed in conjunction with other targeting strategies such as maintaining current users. It can be used by category leaders or by followers. In such instances, it is usually appropriate to segment the market, as the motivations for consumption differ between the point-of-entry targets (Iacobuccid, 2001). The exercise of segmentation, targeting, and positioning is followed by the practical fleshing out of the marketing mix, known as the 4Ps: product, price, place, and promotion. This is the tangible embodiment of the marketing strategy. When we say that the marketing mix needs coherence, we mean that not only must the mix elements be consistent with each other but also they must be derived from and consistent with the segmentation and positioning strategies (Trias de Bes & Kotler, 2003). Proctor (2000) notes that understanding competitors is also the core to making marketing plans and strategy. A firm has to compare its products, prices, channels of distribution and promotional methods with those of its competitors on a regular basis to make sure that it is not at a disadvantage. The process of the competitor analysis basically constitutes three steps. The first step is to identify the firm's competitors. Understanding the competitors of a business in a given industry and developing methods as to distinguish it from them is a very relevant and critical aspect which influences the development of the competitive strategy of the firm. In addition, it is also an important aspect of the strategic planning process as it (1) facilitates the management to understand their competitive advantage or disadvantages associated to their competitors; (2) creates understanding of the competitors past, present, and future strategies; (3) offer an informed basis to develop strategies to gain and maintain competitive advantage in the future; and (4) to facilitate the firm in forecasting the returns that may be made from future investments (Tutor2u Limited 2005). The second step of the competitor analysis is the assessment of its competitors. This may be done through benchmarking as the firms will first have to determine the objectives of its competitors as well as their objectives, then later on assessing the strengths and weaknesses of its competitors. Finally, the third step in the competitor analysis is the selection of competitors to avoid or to attack. After the assessment of the firm's competitors, the firm will have to formulate the specific strategies that will give them the competitive advantage against its competitors. It must be noted that during the process of competitor analysis and the implementations of its strategies, the firm will have to assess which of the competitors' strategies that they will have to follow or not. The second stage which allows the company to compare their operations with others will necessitate some degree of change within the organization. Thus it should be very well noted that the company only as to follow the strategies that will apply to their business as every business is unique in their own nature. These strategies will have to be in lined with the company's philosophies as well.             Both the mind-set of scenario-driven planning and the emerging understanding in the strategic management literature contend that, to speed up institutional learning, we must articulate our mental models through formal analysis. A recent article argues that formal analysis of managers' cognitive maps will help them to overcome personal assumptions and to assess possible ramifications (Acar & Georgantzas, 1995).             To summarize, the marketing process is a sequence. It starts with needs identification in order to establish the persons/situations that become our potential market. The market such as it is defined is considered fixed and stable. Using a prefixed market allows the establishment of a competitive frame and allows tracking of key performance indicators about that market (or category): size, variation, market share. Defining a market is the basis of the segmentation, targeting, and positioning strategies and ultimately of the definition of the marketing mix. In fact, an operational segmentation is possible only because a context named market has been defined. Repeated segmentation leads to hyperfragmentation of markets, which reduces the chances of innovating successful new products. To visualize a market as a fixed model is extremely useful, but at the same time it blinds us to other innovative possibilities. This can constitute a loss of opportunities.   Recommendations             Learning is vital in the success of a company's strategy. To encourage and to make learning an integral part of management technology, companies must lift their sights from the short term. To design strategy, we must learn to search for and to identify patterns of change over time. To practice strategy design and to act proactively, we should replace our transaction-driven calculus with scenario analysis. Learning is not a luxury; it is how firms create their own future. Creating the organizational capability of and ambiance for learning will lead to a truly sustainable advantage. Since marketing has two key concepts, customer/clients acquisitions and maintenance of customers/clients.In the context of marketing, learning is a result of information received through advertising or other publicity or through some reference group or other (Keith, 1990). In order to have an effect on motives or attitudes, Trap-ease America must implement marketing effort and associate the product with positive drives and reinforcing messages. Identifying what people buy and why they make the purchase choices they do is complex. Product features such as status, economy, price, style, color, comfort, and service appeal to different market segments with specific sensitivities (Elliot.1990). Purchasing motives are not permanent and change throughout time. Motivation is influenced by other buyers. The company must implement the buyer/decision model was not specifically designed for new products and its substance was concerned with search and problem solving. It begins with awareness. Marketers must first create awareness and then assist customers through subsequent stages of the process. Consumers cannot begin to consider a new product or service as a solution to need-related problems without this awareness. Successful innovative products should attempt to be problem-solving as successful innovative products should attempt to be problem-solving as far as the customer is concerned.   Awareness can come about as a result of the marketing effort of the company or simply by 'word of mouth' communication. If the product has potential interest and appeal, then potential purchasers will seek further information. Consumers then evaluate the new product against existing products, and then make an initial adoption by obtaining a trial sample, which might be a free sample or a 'trial' purchase. The adoption stage is when a decision is made whether to use the product (in the case of a fast moving consumer good on a repeat purchase basis). Post adoption confirmation is when the product has been adopted and the consumer is seeking reassurance about the wisdom of the purchase. After a major purchase, dissonance (termed cognitive dissonance) is present in the sign of unease that what was thought to be value for money at the time of purchase may not, after all, turn out to be true value. Consumer behavior can also be characterized through the use of psychological factors which include motivation, perception, learning and attitudes and beliefs. Motivation or drive refers to an urgent need which causes a person to seek satisfaction of the need. The next psychological factor is perception which is the process of selecting, organizing and interpreting information in order to form a meaningful picture of the world (Kotler & Armstrong, 2001). Another psychological factor which influences consumer behavior is learning. It modifies consumer behavior from the consumer's experience. If the experience of availing the service or product is rewarding, it is most likely that the purchase will be repeated until the consumer becomes loyal to the company. The company also needs to attract their consumers, and market attractiveness is measures through the following elements: market forces, competitive intensity and market access. The company should develop a product with long term profitability in mind in order to monopolize the toy industry. The element of market forces examines the market size, growth rate and buying power of the target market (Wint, 1995). Thus, the marketing plan needs to re-evaluate if the target market still suits company objectives of providing long-term stability. The other important element of competitive intensity which includes number of competitors, price rivalry and ease of entry indicates that the plan will seek to develop strategies that will ensure competitive advantage without having to resort to a price war. The last element of market access covers customer familiarity, channel access and sales requirements. The last dimension is competitive advantage which seeks elements of cost advantage, differentiation advantage and marketing advantage. Moreover, the company must also give importance to their pricing strategy.  This can be done without having to resort to lowering the price seeing that only a fraction of that goes to the company (Ledger, 2001).             Trap-ease America should also tackle the problem of how to segment, target and position by beginning with competition-based positioning. The company should create their identity by focusing on motivations for product use that had been neglected by competitors and then built business models that could support the desired positioning. The intended positioning then could guide the segmentation and targeting effort.

MARKETING A NEW PRODUCT - A Marketing Term Paper Example

src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> Introduction With the adven...