Stage 4
Marketing Strategy and Development
The fourth
stage of the new product development process is marketing strategy and
development. Marketing Strategy is defined in the Business Dictionary (2014) as
‘strategy that combines all of its marketing goals into one comprehensive
plan’. Therefore, in this stage you will analyse your preferred target market
and assess how your new concept will be received in this market. Marketing
strategy is also defined by Shankar and Carpenter (2012, pg. 1) as ‘a broad plan
of managerial initiatives and activities relating an organisation to its
customers and markets’, this means that you plan how you will introduce the
concept to the market and obtain the
best long term outcome as possible. The
element of development is where you see if the concept is feasible in the long
term with regards to areas such as manufacturing. Also, if needed a prototype
of any new equipment needed in the new sport concept would be produced, to
again, check if the concept will still work in practice.
An example
of a sporting product that has gone through this stage is the iGolf mobile app.
In their marketing plan for the product, they go into detail on how and why
they will market their application. They say that the main advantage of having
the product will be to ‘lower golf scores’ but they also describe how their
product will be different to others on the market through quantity of data,
reliability and customer service. This shows they have gone to great lengths to
market their product and show how it is different to other products in the
market place. iGolf also produced a pricing strategy and planned where they
would place themselves in the market, and they decided that with the already
established database, they would be able to position themselves as a market
leader.
In the last
blog, it was stated that questionnaires would be used to test how the new
concept would be received on the market by both people that are already fans of
motor racing, and people who aren’t. A marketing strategy has been developed
and it has been decided that the new concept will be aimed at introducing new
fans to not only Formula One, but other types of motor racing. At first it will
be marketed as a short season appearing outside the already established Formula
One season, to make sure it is available for as many people as possible to
watch. It is planned that the short season and the short races will appeal to a
wider audience and then in the future, the season will become longer if a fan
base is developed. At this stage, no development is needed regarding the cars,
because the teams will already be established in Formula One and they will be
using the cars that were used in the previous season. With this being the case,
the teams and sponsors will hopefully see this a new opportunity to invest in
something that will grow over time.
Reference
List
- Business Dictionary (2014) Marketing Strategy. Available at: http://www.businessdictionary.com/definition/marketing-strategy.html (Accessed: 2nd December 2014).
- Shankar, V. & Carpenter, G, S. (ed.) (2012) Handbook of Marketing Strategy. Cheltenham: Edward Elgar.
- Zazo, A. (no date) iGolf Mobile Marketing Plan. San Diego, CA: L1 Technologies.
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