Running Head: Marketing Mix Sonics Target Market and Positioning Strategy Introduction Sonic is a hypothetical startup company

which intends to introduce a new product into the telecommunication market, the sonic 1000, a multimedia cellular and WIFI enabled personal digital assistant(PDA).It targets specific segments and valued features in the well crowded and dynamic market of computers and smart phones. Some of the specific segments viewed include professionals, corporations, students, entrepreneurs and medical users. The company positions itself in the tough competition of well established companies which includes palm, hewlett-packard, motorola, apple

among others. Competition is high even as technology evolves continuous industrial consolidation and the price pressure squeezing profitability. The purpose of this report is to identify the factors that will make the new product fair well in the market in-spite of the competition, emergence of some certain conditions which may be inevitable, set the course the business is to take, building a strong customer base and come up with any opportunity to make a profit. This report will also help define the actual times of financial outlays thus avoiding surprises. A crucial benefit of a marketing plan is the clarity in direction. It helps in the decision of not only when you advertise, but how and to whom. The company will definitely want to know what the plan is for the money it invests in the project (brooks, 2008). Product Strategy Recommendations Sonics market consists of consumers and business users who prefer to use a single device for communication, information storage and exchange, organization and entertainment all at once. Differentiation makes customers in a given segment have a lower sensitivity to other features (nonprice) of the product (Sharp, Dawes 2001). The types of product differentiation sonic can use is Simple method since it is based on a variety of characteristic. This is because it faces a major weakness of brand awareness and image. By

Running Head: Marketing Mix

relying on a variety of characteristics instead of just one, the new product will appear different from the other highly competitive existing products. Sonic can rely on innovation and make Sonic 1000 stands out from the rest ,concentrate on its security which in their case they uses a Linux based operating systems which is secure in comparison to the others, and finally control its prices to appear good to the customers. Sonic should also concentrate on its weakness by making the customers aware of their brand and explains why it appears different from the other similar brand. The difficulties in categorization increases as the difference in the product increases, hence it draws less comparison with its competition. As the product differentiation strategy becomes more successful it takes the product from competition based primarily on price to the competition on nonprice factors such as the distribution strategy, product characteristics, or promotional variable (Sharp et al 2001). Ingredient Branding with Linux Operating System Sonic can use ingredient branding since Linux operating system is a product on its own and has its own brand. The symbiotic relationship will benefit the two since the Linux operating system is popular with its security hence it will assist in marketing Sonic 1000 as well as itself. The type of ingredient branding to be used is association of quality assurance which highly targets audience awareness relevance and prevalence. This will involve extending the brand beyond the direct consumer to the final consumer (Turner 2010). Packaging and Labeling Since the brand image of Sonic 1000 PDA is poor the packaging and labeling must be appealing in order to attract and hold the consumers eye and attention. The packaging and labeling must be at a minimized cost and at the same time protect the product, promote the product and add additional value. The packaging of the PDA should complement other promotional activities; communicate the benefits over other similar products clearly indicating the addresses of Sonic Company. Packaging and labeling should be such that it justifies increased purchase of the PDA and offer consumers a free manual on its

Running Head: Marketing Mix use which communicates everything including safety precautions (berry 2010). Support Services Likely Wanted and Needed by the Customers

PDA buyers need to know the full use and function of the product which differentiates it from the other similar products. What the product is offering should also be given to the buyers and also the product accessibility and distribution customer relationship department to interact with a customer for their immediate benefit, should be created and includes components contact centers, help desk and the call management system. The buyers need to know after-sale services offered by Sonic Company, maintenance of the device and emergency cases while using this device. Sonic company can conduct numerous advertisements to help customers differentiate expected service and the perceived service, and offer most of the expected service to cover-up the perceived ones Pricing Strategy Recommendations The primary objective of Sonic Company in marketing the Sonic 1000 PDA is to attract the desirable channel partner and take a share of the already established competitors. There is a likelihood of a price/quality relationship which refers to the perception by customers that a higher price is a sign of good quality whereas a lower price than the existing price of a similar product is a sign of lower quality. This uncertainty is very sensitive and Sonic Company should set a price which may not give a wide margin compared to the other similar products. The effect of this hypothesis is that the customers are ready to pay greater premiums. This may lead to an increased price on all similar products, even those of low quality (Nagle, Holden 2002). Premium pricing should be adapted by sonic company. This is the strategy of where sonic will consistently pricing the Sonic 1000 PDA device at, or near, the high end of the possible price range to attract status conscious consumers. Customers will buy the product because of the following possible reasons: They tend to believe the high price indicates of better quality, and that they require flawless performance in the use of the device since the malfunction cost is too high hence they prefer the best. ((Nagle et al,2002).

Running Head: Marketing Mix Place/Distribution Recommendations Push strategy will make use of the companys sales force to create consumer demand for Sonic 1000 PDA device. A push strategy will be appropriate for Sonic Company as it will sell directly to the consumer and bypasses other distribution channels. This is essential because consumers will have a first hand experience and guarantee from the company and the company will quickly learn the customer response. Selective distribution should be used by Sonic Company since suppliers distribute through a controlled and moderate number of retailers allowing suppliers to have higher sales than in exclusive distribution and lets retailers carry some competing brands. The type of retailers used should be; Departmental stores since they are known to offer large variety of hard products in display. Sonic 1000; PDA device can be set on a strategic point where a company representative can be there to introduce and give a good description of the device to potential

customers; Discount stores retailers and the general merchandise store can also be used since they offer a wide variety of the products.(Krafft, Mantrala, Murali 2006). Wholesalers will act as middlemen between in the distribution chain. They will act as a channel partner of Sonic Company who are initially encouraged. A wholesaler will forecast the demand for the product and informs the company. He is also to arrange transportation and storage of the product in different locations conduct some advertising and sales promotion. Promotion/Integrated Marketing Communications Strategy Recommendations Among the four Ps of the marketing mix, promotion has proved significant in the companys performance towards increasing sales and market share. Promotion includes activities like sales promotions, advertising, selling, public relations, media, message, budget and direct marketing. Promotion has became the most important of the marketing mix components because through promotion one gets to interact with the current and potential clients therefore making the market share stable as well s increasing the market share for the company. A successful product is not important unless the benefits of the product are communicated to the target group.

Running Head: Marketing Mix In undertaking promotional activities, the organization should take various measures and integrate a variety of promotional activities for the best results. Sonic should integrate advertisements, public relations, sales promotion, personal selling and direct mail promotional activities specific to the various target groups. It would be irresponsible of sonic to engage in internet marketing if the target group is not composed of internet users. The target group should determine the type of promotional activity to be carried out. When a product is new in the market, the company should engage in magazines, radio, coupons and other media advertisement. As the product attains good acceptability levels, the organization should increase brand awareness strategies to increase product loyalty by the clients. When the product attains maturity, the organization should aim at persuasive tactics to lure the clients into buying the companys product instead of the rival company product. However the product may face decline in market share resulting from stiff competition from rival companies. This prompts

the company to use strategies aimed at reminding the clients of the features and capabilities brought by their products so as to reduce the rate of decline in market share. In the initial stages, sonic should engage in media advertisement especially through radio, televisions and other visual media as well as direct sales. This will help in demonstration of the features and how the user can utilize this in performance of the tasks. After the product has being in the market for six months, the initial promotional activities should have enabled the product to own a significant market share. There should be advertisements on the news papers and radios to retain the market share and increase it. From the fact that sonic deals with electronic gargets, there is need for direct sales promotion (Drypen.in 2010). This will be helpful in demonstrating to the user of the features of the PDA. Through direct sales the potential clients will be able to express their fears which will be reassured by the direct sales representatives. The interactive means for use by sonic includes internet promotions, banners and televisions. The word of mouth is the most influential means of advertisement. This is because the sales agent interacts directly with the potential customers in assuring him of the capabilities and features of the

Running Head: Marketing Mix phone. Any fears expressed by the potential clients are removed. The potential customer if convinced will spread the information working to the advantage of the company. Conclusions In the introduction of the new product to the highly competitive and crowded market, Sonic

Company has to come up with a classic strategy in all aspects of marketing. Differentiation when applied well in all the strategies will makes customers in a given segment have a lower sensitivity to other features of the product other than the price. The product, pricing, distribution and marketing strategies need to be unique from that of the existing so that Sonic 1000 PDA device can stand out from the other similar product. All the strategies applied should also be geared towards the Creation of a firm customer base.

Running Head: Marketing Mix References Sharp B., Dawes J. (2001), What is Differentiation and How Does it Work? Journal of Marketing Management, 17, 739-59. Nagle T. and Holden R. (2002), The Strategy and Tactics of Pricing, London, Prentice Hall. Krafft M., Mantrala, Murali K. (2006), Retailing in the 21st century: current and future trends. New York, Springer Publishers. Drypen.in (2010), Advantages of Sales Promotion, viewed on 14th August 2010, http://drypen.in/salespromotion/advantages-of-sales-promotion.html. Berry T. (2010), packaging and labeling, viewed on 14th August 2010 from http://articles.mplans.com/packaging-and-labeling.