Wk 6 – Social, Ethical and Legal Implications
Running head: MARKET STRATEGY 1
MARKET STRATEGY5
Market strategies for the new product in the market
Dennis E. Gamarra
Instructor: Meraj Khan
MKT/571 Marketing
February 17, 2020
Market strategies for the new product in the market
Market penetration strategy
It is the strategy used by the company to expand the market share for the existing products and services being offered by the company. When the products are introduced into the market they will undergo four stages of the product life cycle which include introduction, growth, maturity, and decline.
At the introduction stage, the products will be facing competition and the company may decide to use different strategies to ensure that it gets some customers from the existing companies supplying to that market. Strategies may include lowering the price, investing in research to understand customer needs so that products are made in a way that meets the demand of customers. This stage is the most costly stage.
At the growth stage, the business now has established and the market share is increasing what the company needs to do is to maintain the customers it has acquired and used other strategies of ensuring that it increases the market share to gain a competitive advantage over the competitors.
At the delining stage, the product of the company has reached the maximum market share and there is no room for further growth. In order to fr the company to survive after this stage is to think of another product line.
In testing whether a marketing strategy for a certain product or service is successful, the promoters must come up with the most viable metrics to measure the effectiveness of the product in the new market. (Hennig-Thurau, 2010). The first method to measure the effectiveness of the product will be by looking at the frequency of inquiries by the clients about the product or services on the website of the company. The internet parametric can be used to determine the number of times that potential customers visited the websites ensuring the products and services being offered. In cases, where many customers have viewed the website in search of the products and services being offered then the marketing plan can be considered private.
On the opposite, a scenario in which fewer customers are accessing the website to seek information about the products and services being offered due to lack of proper awareness created by the marketing strategy of the company. Hen only a few customers visit the website then it is true that the marketing strategy is not functioning. The FAQ section of the web site offers san opportunity for the potential customers who visit the site to provide information on whether they have been made aware of the existing product and services on the website of the organization. For instance, the questions asked by the customers such as the time of operation of the company in terms of opening hours, and inquiry about the products and services available. When such questions are asked then the company is in a position to determine the effectiveness of the marketing strategy.
On the opposite, when customers are not asking questions about the products being offered and the operations of the company hen there is a belief that they are not aware of indicating the failure of the marketing strategy. Therefore, the frequency of customers accessing the company website is a good measure for determining the effectiveness of marketing strategy through advertisement.
Media Methods for the NPI Different methods can be used when introducing a new product in the market and can take the form of print and non-print media. Examples of printed media are magazines which most of the customers buy daily and can use them to get information about the new product in the market. Print media is the best because in case the customer forgets about any feature of the product advertises the customer can easily retrieve the magazine and get the information back. It also allows customers to read in their own free time. Another way of introducing the new product into the market is by the use of non-print media which are social media platforms such as YouTube, Twitter, and Instagram, and Facebook to create awareness on the new products being offered to the market by the company (Mangold, 2009) Integrated Marketing Communication This marketing strategy involves the use of intensified and diverse methods for marketing the new product into the outside world. It is made up of a combination of digital and traditional marketing strategies. (Schultz, 2014). Advertising Execution It is a marketing strategy that comprises the frequency at which the different channels of adverts are used in relation to the selected adverts mode. In order for the advertising model to be effective, it must be prompt. This means that the execution of those adverts should be carried out intensively to reach more potential customers.
Direct Marketing strategies Direct Marketing strategies are where the company produces products and services than by the use of salesperson it moves into the neighborhood market to create awareness of the new products to potential customers in that market through sales and marketing. When offering new products to the market promotions are encouraged where customers get products at a lower price on that day to convince them to test the new products or be given a free gift such as T-shirts. Direct marketing strategy is an effective method of increasing product awareness to its potential customers.
Hennig-Thurau, T. (2010). Relationship marketing success through investments in
customers. In Relationship Marketing (pp. 127-146). Springer Berlin Heidelberg.
Mangold, W. G., & Faulds, D. J. (2009). Social media: The new hybrid element of the
promotion mix. Business Horizons, 52(4), 357-365.
Schultz, D. E., Tannenbaum, S. I., & Lauterborn, R. F. (2014). The new marketing paradigm: Integrated marketing communications. McGraw Hill Professional.