SONIC 1000 PDA
a. Are PDA customers likely to be price-sensitive? Is demand elastic or inelastic? Explain. What are the implications for pricing the Sonic 1000 PDA?
Digital technology is the fastest growing arena. The first PDA was launched by Nokia in 1996 known as 9000 Communicator which was the most popular and appreciated PDA of its times. Since then a complete new generation of PDAs has swamped the market and its first generation PDA customers have began to re-appear to make purchases of multifunctional PDAs. Due to the high level of competition in the PDA market, the prices have been considerably lowered at the sacrifice of gross margins. However, the PDA customers are more inclined towards purchasing a PDA that is high-tech, has maximum functions and is compatible with all kinds of software. In this regard, the price elasticity curve will be a steep one since the demand will remain inelastic in terms of price. The brand that offers the maximum number of functions would be preferred over others. In case of Sonic 1000 PDA, the $250 pricing is lower than the competitors price which gives them a competitive edge over others. Furthermore, the element of voice is also an additional feature offered by Sonic 1000 PDA which is not provided by others. Thus, the current price will have a positive impact on the sales of Sonic 1000 PDA.
b. What price adaptations should Sonic include in its marketing plan?
Moonitz (1948) argues that price rise should be to achieve a plateau of higher importance that will remain stable for a generation into the future. In this regard, the price adaptations have to be considered in accordance with the upcoming opportunities and the potential of the new product only. The price adaptations for the Sonic 1000 PDA for its marketing plan should include increased prices for new technology in order to attract new business partners and new customer segments.
This archive file of BUS 640 Week 5 Price Quotes and Pricing Decisions Applied Problems shows the solutions to the following problems: 1. a. Why would your company have bid with a zero mark-up on some past tenders? Business – General Business Price Quotes and Pricing Decisions Applied Problems . Please, complete the following 3 applied problems in a Word or Excel document. Show all your ...
a. What communications objectives are appropriate for Sonic’s initial campaign? Explain.
Sonic has a major weakness which is the lack of awareness of its brand name. Though, the product Sonic 1000 PDA has numerous features that are unique in its nature and its voice-recognition feature is its competitive edge over other competitors. Nonetheless, Sonic’s initial communications objectives have to be focused and concentrated on the following:
● Launching the Sonic brand name.
● Creating awareness of Sonic’s new product and its related features.
● Brand activation of Sonic 1000 PDAs cutting edge technology.
● Highlight the lowest prices coupled with new feature of voice-recognition.
Each of these communication objectives highlight the importance of creating awareness of the brand name, which plays an integral role in the increase of sales. The initial communication campaign should undergo the differentiation aspect also as the unique features of the Sonic 1000 PDA and its lowest price will attract the customers to purchase it.
b. Which promotional tools would be most effective in Sonic’s promotional mix? Explain.
The promotional mix of Sonic should include advertising through all types of media and public relations which includes personal selling and trade relations. The advertising is the most effective and wide used tool to promote a new product in the market. Essentially it is the most accessed electronic medium by all types of target market segments. To further enhance its effectiveness, the public relations provide a personal touch to the promotional activities. The customers become connected once they come face-to-face with company’s employees.
In this assignment, Puan Izzati has gave assignment that should to the all students. For first question, Puan Izzati orders to find what differences between storefronts such as drugstore. com and brick and clicks operation such as walmart. com? And what the advantages and disadvantages of each. Second question was, what are four generic business strategies for achieving a profitable business and ...
13. Evaluation of marketing effort
a. How can Sonic evaluate its marketing? Suggest and explain specific actions that Sonic should take.
Evaluation of marketing campaigns is an important aspect as it helps in providing the effectiveness of a particular tool in practice. Sonic has to evaluate its initial campaign to evaluate that whether it has been successful in achieving its communication objectives as well as financial objectives or not. In order to do so, Sonic has to take following actions:
1. Conduct analysis of the sales figures before, during and after the running of the campaign: The first step for Sonic would be to conduct a comparative analysis of the sales figures of the Sonic 1000 PDA before the campaign was initiated, during the time it was running and once it was closed. The graph will provide whether the campaign was able to attract any higher sales of PDA units or not.
2. Conduct a feedback session with customers: The second step would be to conduct a feedback session with the customers of PDAs to find out the level of awareness they have regarding Sonic brand and its new product. This way, the effectiveness of the marketing campaign will become evident.
b. What role should social responsibility play in Sonic’s marketing?
Social responsibility is the means of creating a positive and moral image in the minds of the customers through environment and society friendly activities. It shows that how much the business is morally and ethically ‘giving back’ to the society at large and for the betterment of the environment which has given so much to the business. Sonic can use social responsibility as the primary aspect in their Code of Ethics and promote this aspect through every marketing campaign. This way, the customers will be further attracted to the brand name and will be able to relate it with ‘green’ and ‘friendly’ business.
Sonic 1000 PDA Marketing Plan Exercises. Retrieved June 8, 2011 from http://wps.prenhall.com/wps/media/objects/3263/3341369/kotler_appdx_cw.pdf
Also, I will like to thank my parents for their immense provision and support. I will like to appreciate Pressy Ebimobowei Waratimi the Deputy CEO and founder of Rakeone Music, Rakeone Films and Rakeone TV for his immense support. I like to thank Slimface Ebiye Romeo the CEO of Romeos Artisthood. My express deep gratitude goes to my lovely friends Midian-Dicey Biyen, Kio Mikietuoniso, Gabriel ...
Moonitz, M., (1948).
Adaptations to Price-Level Changes. The Accounting Review, 23(2).
Retrieved June 8, 2011 from http://www.jstor.org/pss/240826
Part Three: Avoiding Myopia
Locate and peruse the article “Marketing Myopia” by Theodore Levitt (Harvard Business Review, Jul/Aug2004, Vol. 82 Issue 7/8, p138.) This article is available online from the Business Source Premier Database from Liberty. (Note: It may be easier to locate the Harvard Business Review by doing a journal search, and then finding the article.)
Though a concept born years ago, marketing myopia remains relevant (notice the 2004 date).
From the context of this article and your knowledge about Sonic, prepare a response to the following:
1. What 3 actions, found in the Levitt article, can Sonic do to keep from suffering myopia
Sonic will have to undertook three actions in order to avoid marketing myopia. These actions are: 1) Defining what is the business? 2) Defining the purpose and 3) Developing products in response to customers’ needs.
1) Defining what is the business?
Levitt in 1960 was awarded the McKinsey Award for his article Marketing Myopia published in Harvard Business Review. His main question to the businesses was that what is their real business? Levitt argued that there are industries that are booming and there are also those which have failed to exist (Levitt, 2004).
The latter ones are reasoned for the saturation of the market and the vanishing of the needs of the customers. Levitt believed that it is the failure of the management instead which is responsible for the failure of the industry. The myopia of focusing on the product development rather the customer need limits the functioning of the business. For instance, the manufacturers of cars will vanish if their business would be cars when it should be transportation. The latter term is a greater in scope as it covers all kinds of vehicles that are used for transportation. Therefore, when the demand for cars lowers, the business can switch to other types until the demand increases.
Likewise, Sonic has to first define its business in which it is operating. Instead of being specific product oriented like PDAs, it should promote itself as a broader industry. As a result, when the demand for PDAs dwindle, Sonic continue to remain in the business.
The relationship between business ethics and customer relations lies in the manner in which the management of various businesses apply the principles of ethics in their interaction with customers. As such, business ethics and customer relations may apply to the way in which a business conveys its products and services to customers and the manner in which it handles customer complaints. It also ...
2) Defining the purpose:
The second important action for Sonic to avoid suffering from marketing myopia is to define its purpose of existence. The purpose of a business entity describes the reason for its formation which helps in developing its mission statement, vision, objectives, code of ethics, policies and strategies. Without a purpose, no business can exist. In this regard, the purpose has to be defined in an open mind manner. Since, the purpose is the foundation upon which the entire business is erected, therefore, it has to be broad in its scope to help it grow and expand in the future. The purpose should be one that is general in nature allowing room for adaptations, changes, additions and subtractions to remain running according to the economic turns of its cycle.
Sonic has to define its purpose in a general and open minded manner so that it has the advantage of developing new products and entering into new markets segments when desired. In case of a strict and specific purpose, Sonic will not have room to bring new products in order to satisfy the changes in culture and lifestyle of society. Therefore, a broad product portfolio is the answer to the changing customer trends which are covered under the general purpose of the existence of the business.
3) Customer Needs Focus
The third important action that Sonic has to undertake to avoid marketing myopia is to become customer focused. By this it is improvised that Sonic develops products after keeping in perspective the needs of its customers. The customers like change in terms of modern gadgets and compatibility features among many others. In order to remain in the market and to aim for the greater market share than the existing one, Sonic will have to develop its new products after undertaking thorough customer feedback and their expectations research. This way, Sonic will be able to collect all the related data that will help in developing its product portfolio to meet the customers needs and expectations. At the same time, it will help in remaining in the limelight of the customers.
“Take up one idea. Make that idea your life- think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body be full of that idea, and just leave every other idea alone. This is the way to success”. I read this quote by Swami Vivekananda in 2011 when I was deciding my career choice in 2011 when I was in Grade 11. Initially I was inclined towards science as ...
Levitt, T., (2004).
Marketing Myopia. Harvard Business Review, July/August. Retrieved June 8, 2011 from http://hbr.org/2004/07/marketing-myopia/ar/1