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Principles of Marketing - Philip Kotler

Identifying new markets

The organization may engage in the search for new opportunities or from time to time or regularly. Many seek out new ideas, just carefully watching for changes in the market. Company executives read newspapers, attend trade fairs, study competitors' products, market information collected in other ways. Many ideas can be obtained using non-formal methods of gathering information.

Others identify new markets, using formal methods. One useful technique is to use this kind of mesh product development and market 2. This grid is shown in Fig. 7 As for shampoos and firm "Helene Curtis."

Fig. 7. Identification of new markets with the help of a grid of product and market

Deeper market introduction. Firstly, the production manager of shampoos in the firm "Helene Curtis" ponder over the question of whether its main branded shampoo "Suav" be able to achieve deeper market penetration, m. E. Sales growth in the currently existing target group of buyers without making any changes in the product itself. In other words, the company will continue to work with existing products in existing markets. In this case, you can try a number of approaches, including the reduction of the list price of shampoo "Suav" increase in advertising costs, advertising testing of "rotation, spread the shampoo through the increasing number of stores, providing him more visible laying on the shelves, etc. In fact, the production manager "Suav" shampoo would like to bring it to the consumers of other brands of shampoos, without losing any of their current customers.

Expanding the boundaries of the market. Secondly, managing the production of shampoo "Suav" existing product, try to find new markets for it. He will take up the study of demographic markets? Markets young children, preschool children, adolescents, young people, older people? to determine whether any of these groups to encourage switching to the use of "Suavom" and start buying it more actively. Then the manager reviews the organization of the market? health clubs, beauty salons, hospitals? to find out whether it is possible to increase sales to them. Then, an overview of the geographic markets? French Market, Thailand, India? in order to find out whether it is possible to learn and wider. All this ? strategic approaches to expand market boundaries.

Product development. Third, the production manager of shampoos, perhaps, conceived to offer new products available to customers in existing markets. We can offer shampoo "Suav" or new packing or to the inclusion of new fragrance them new features, or the new package. All these options for possible modifications of the goods. In addition, "Helene Curtis" can bring to market one or two of shampoo completely new brands designed for different groups of users. The company can design and other means of hair care products - preparations to strengthen the hair and preparations for hair styling - which may be interested in the acquisition of existing customers. All this - strategic approaches to the development of the product.

DIVERSIFICATION. Fourth, at the disposal of the company "Helene Curtis" a set of diversification opportunities by offering new products in new markets. It may open at or buy production unrelated to its current range of products and markets. She could think of to get involved in such "fashionable" areas as the release of a video game (see. Box 4), equipment for text processing, personal computers, or the opening of kindergartens. Some firms seek to identify the most attractive from their point of view, the emerging manufacturing industry. According to them, half the secret of success? penetrate the attractive sphere of activity, rather than trying to achieve economic efficiency in the industry unattractive.

Box Video Game 4 - a branch of an attractive, but not for all

Video Games - one of the fastest growing in US fields. Until 1977 a fan of action games could go to the gym or buy a pinball and connect it to your TV set-top box "Odyssey" and "Magnavox" in which the program was laid down in one or several games. In 1977, the company "Atari" released the first video games on cassettes. Now you can buy a programmable remote control was set-top box to the TV and select the game from a large number of cassettes to video recordings. The remote-console worth $ 150., Cassettes? from 15 to 30 dollars. per piece. Since 1979, sales of new games began to grow at an unprecedented pace. By 1981, the industry leader, the company "Atari", has sold more than 5 million. Hand-held consoles. Although video games have gained only 8.5% of US households, experts predict that in the second half of the 80s, this figure will increase to 50%. And besides, opening foreign markets.

"Atari" dominates the market for playing consoles, occupying 75% market share. It is followed by "Intellivizhn" branch of the corporation "Mattel, Inc.". (15%), the company "Odyssey" (9) and the firm "Astrovizhn" (1%). "Atari" is dominant on the market of game tapes, but a host of imitators, producing game cartridge compatible with prefixes "Atari" or "Intellivizhn". The greatest success among manufacturers of gaming magazines achieved company-newcomer "Aktivizhn", formed by four specialists in software, former employees "Atari". In less than two years 'Aktivizhn' turnover reached $ 50 million.., In more than 60 times higher than the originally invested in the deal amount. At a recent trade fairs new game tape provided is not less than a dozen consumer electronics companies.

Leaders "Atari" are developing marketing strategies for the next few years. One of their main concerns? counter attacking "Intellivizhn" the company's strategy, which is going to offer consumers a set-top box and games, more advanced in terms of graphics and sound design, although the price of consoles rises to $ 250. The "Intellivizhn" advertising delivers your console as a commodity class "Cadillac" which is more expensive, but it gives more. "Atari" is taking counterattack using a strategy of product development, preparing for release to the market the prefix "Supergeym" at the price of $ 349. The company hopes that the new product will exceed the prefix "Intellivizhn" and undermine its position as a "Cadillac" product class. However, to reflect this counter concern "Mattel" plans to start production of set-top boxes with a voice synthesizer that turns the game "Intellivizhn" to "speak."

"Atari" is necessary to take into account the forecasts of experts, according to which after some time due to the spread of personal computers in private use sales for video games consoles will start to fall. Personal computers will allow to play more sophisticated games, and perform many other operations. Fortunately, in the "Atari" is a department for the production of computer equipment. According to one observer, "over time displace many computers video games, and the" Atari "- the only company that understands this and is constantly taking steps to improve its computer business."

Certainly it is clear that the "Atari" settled in an attractive industry. It will open whether this sphere of activity a tempting opportunity for other companies depends on their objectives, available resources and the distinctive advantages, with which they will come into the industry.

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