Marketing Strategy
Marketing Strategy
Introduction
For new products and services, it is critical to embark on a comprehensive research about the different marketing perspectives. Such perspectives include competition, pricing mechanisms, distribution strategies and consumer trends among other factors. This research paper will examine the positioning perspectives of the product in line with United States census data. Additionally, the analysis encompasses the different kinds of research and the prospective problems of the distribution network.
Target Market
The demographics within the United States population provide an excellent platform for the repositioned target market for the product. The first segment in this market comprises of the elderly. These are people who are into the retirement age bracket. The population segment of above 60 years comprises of more than 50 million people (Shapner, 2007). This is a substantial number that provides an excellent market base for the product. Consequently, it is fundamentally essential to establish an effective promotional strategy that seeks to reach out to this age group. However, it is pertinent to note that this segment is not extremely active compared to other groups. In line with this perspective, promotional strategies for the product should not prioritize this segment.
The second segment that comprises the target market is the youth. According to the United States Census Bureau, more than 20% of the country’s population comprises of the youth (Shapner, 2007). This is a substantial number that provides numerous marketing opportunities for the product. Within the United States population, young people are evenly spread across the different states. This is a helpful statistic in terms of streamlining the promotional strategies for the product (Ferrell, 2010). As opposed to the elderly population age group, the youth are extremely vigorous. This is useful attribute that would be beneficial in popularizing the product.
People aged between 25 and 50 also comprise an essential segment of the United States population. This segment comprises of more than 30% of the country’s population. It will thus serve as a vital age group for target while marketing the product. Although the United States has more than 300 million people, there is extensive diversity in the population in terms of ethnicities and cultures (Shapner, 2007). These population dynamics are also extremely pertinent in terms of the target market for the product. The preferences for different ethnicities are extremely diverse. By understanding these consumption trends, it is possible to establish an effectual marketing strategy for the product. For instance, the consumption trends among African Americans are different from the Hispanics (McDonald, 2011). Consequently, the United States Census data will have extensive implications upon the positioning strategies for the new product especially in terms of marketing.
Research for Repositioning
Prior to repositioning a product, it is fundamentally essential to embark on a comprehensive research framework. The research is extremely crucial in terms in that it helps in identifying the most effective marketing strategies. There are numerous attributes that influence the effectiveness of repositioning plans. For instance, the repositioning strategies would not be effective if they do not target the right markets. Consequently, this justifies the essence of research prior to repositioning.
Among the available survey alternatives, qualitative research is among the most outstanding approaches. This research framework is relatively inexpensive and has excellent standards of effectiveness. For instance, qualitative research is helpful in evaluating the consumers’ attitudes towards certain products (Ferrell, 2010). In any repositioning framework, it is fundamentally essential to examine the attitudes of consumers towards the products. This is vital in terms of averting potential losses in the future.
Qualitative research is also helpful in examining different types of variables that affect the repositioning strategy. Prior to repositioning, research about the prevailing competition is extremely vital. Competition has an inherent impact upon the marketing strategies used for the product. This kind of research helps in establishing the promotional strategies used by competitors. Without research, it would be extremely complex for the product to penetrate the market. Apart from competition, research about potential capital investment is also a pertinent component of the survey (McDonald, 2011). Such research helps in determining whether the company will recoup the money invested in repositioning. This kind of research helps in averting potential losses for the company.
In repositioning the product, quantitative research would come in handy. In essence, this approach to research helps in evaluating the entire repositioning framework from an empirical perspective. Quantitative research has high standards of accuracy and would thus be vital in analyzing different variables (Stevens, 2005). For the quantitative framework, it would be vital to employ the systematic sampling methods. Through systematic sampling, it becomes easier to classify the results into different categories.
Increasing Adoption Rates
In basic terms, adoption rates encompass the extent of product acceptability among consumers. For any business organization, it is fundamentally essential to establish an effective mechanism for streamlining the adoption rates of products. High adoption rates are helpful in terms of enhancing the market share of the product. Additionally, high adoption rates are critical towards enhancing overall productivity for the company.
There are numerous approaches that would help in increasing the adoption rates for the product. The enhancement of distribution intensity stands out as a pertinent approach towards streamlining adoption rates. For instance, consumers should access the product with relative ease. The minimization of stringent procedures is among the most effective strategies for enhancing distribution intensity (Ferrell, 2010).
The second method of enhancing the adoption rate encompasses the pricing mechanisms. If the product is relatively cheaper than similar products from competitors, this would tremendously enhance the adoption rates. While purchasing products, consumers always look out for economic advantage. This underlines the significant role of pricing mechanisms in the enhancement of adoption rates.
It is vital to familiarize consumers with the various benefits of the product. If the product has substantial benefits, it is relatively easier to enhance the adoption rates. The communication mechanisms should be highly effective in order inform potential clients about the benefits of the product. For instance, the product is easy to use compared to other versions in the market. Consequently, user-friendliness would come in handy as an essential attribute of enhancing the adoption rates for the product. Promotional strategy serves as another pertinent method of enhancing the adoption rates for the product (McDonald, 2011). Promotions are fundamentally vital in communicating to consumers about the product. Even after repositioning, the product would remain as a relative mystery in the absence of adequate promotions.
Apart from familiarizing consumers about the product, promotion also serves as an excellent tactic for dealing with competition. Aggressive advertising strategies are vital in maintaining competitiveness for the product. Through promotion, it is possible to enhance the adoption rates for the product to specific target groups (Stevens, 2005). For instance, some adverts might help in boosting the adoption rates for the product among the youth. All these perspectives underline the different methods of enhancing the adoption rates for the product.
Service Component
A new service component will generate new interest in this product. In essence, a new service component is vital in creating competitive advantage for the product. The competitive advantage serves as a pertinent framework for enhancing market share for the new product. A new service component also serves as an essential platform for enhancing innovativeness. Innovativeness is among the most pertinent aspects of marketing in the modern world. This is because potential consumers look out for products that offer an excellent standard of uniqueness. This justifies why a new service component would be helpful in generating new interest in the product (Ferrell, 2010).
Additionally, the new service component would be helpful in enhancing the beneficial attributes of the product. Consequently, the new service component would serve as a component for streamlining adoption rates for the product. Most consumers in the United States have tremendous preference for unique products that enhance dynamism (McDonald, 2011). The new service component is an exemplary perspective for streamlining dynamism.
Distribution Problems
There are various challenges that might hamper the distribution network of the product. The first potential stumbling block in the distribution network pertains to legal issues. Authorities have numerous legal stipulations for regulating business operations. These regulatory mechanisms might strongly undermine the effectiveness of the distribution network. From another perspective, legal complications might emanate from industry regulation mechanisms. In essence, most of these regulations seek to promote fair business practice as well as the maintenance of business ethics. However, some regulations are extremely strict (Stevens, 2005). This might have substantial implications upon the effectiveness of the distribution network.
In order to alleviate the legal issues, it is essential to establish a comprehensive framework for streamlining compliance. The attainment of the relevant compliance standards helps immensely in averting potential conflicts with the law. Apart from legal issues, another potential challenge within the distribution network is the involvement of third parties. In order to enhance distribution efficiency, it is critical to involve third parties. This helps in ensuring that the product reaches as many clients as possible. However, such third parties might cause an increase in distribution costs. The attainment of efficiency in any distribution network is strongly dependent on the extent of cost efficiency (Ferrell, 2010). In order to alleviate this challenge, the distribution network of the product will involve minimal third parties.
Conclusion
The research paper analyzes numerous perspectives about positioning the new product. These perspectives range from market research to the distribution network. Within the United States population, young people are evenly spread across the different states. This is a helpful statistic in terms of streamlining the promotional strategies for the product. As opposed to the elderly population age group, the youth are extremely vigorous.
Among the available survey alternatives, qualitative research is among the most outstanding approaches. This research framework is relatively inexpensive and has excellent standards of effectiveness. For instance, qualitative research is helpful in evaluating the consumers’ attitudes towards certain products. Promotions are fundamentally vital in communicating to consumers about the product. Even after repositioning, the product would remain as a relative mystery in the absence of adequate promotions.
References
Ferrell, O. & Hartline, M. (2010). Marketing strategy. Mason, OH: South-Western
McDonald, M. & Wilson, H. (2011). Marketing plans: How to prepare them, how to use them. Hoboken, NJ: John Wiley & Sons
Shapner, S. (2007). Demographics of the United States. New York, NY: Nova Science Publishers
Stevens, R. & Loudon, D. (2005). Marketing planning guide. New York, NY: Taylor & Francis
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