Strategic Marketing Management – BUSI 520-B06
July 4, 2010
Years of research and development, along with millions of shareholder dollars, have been invested in the latest technological breakthrough from Sonic. The next step for any new product on the concept-to-consumer road is the development of a marketing analysis. The following pages will provide evidence of countless hours of research the marketing team has compiled in an effort to provide the best answers to questions that will prove vital in the marketing and sales of the Sonic 1000. Contained in this analysis is a recommendation as to the content and structure of Sonic’s mission statement, complete with a detailed explanation of the reasons behind the recommendation. The marketing team will utilize one of Dr. Michael Porter’s generic strategies in an effort to pave the way for Sonic to build a competitive advantage. Sonic’s target market will be defined and the needs met by the Sonic 1000 in that target market will be demonstrated. In a section focusing on the market environment, several key considerations affecting the product will be presented, including demographic and economic trends as well as technological changes. The consumer market will then be analyzed in an effort to help explain the motivations and behaviors of consumers in the market for a Personal Data Assistant (PDA). Next, the competition will be analyzed in an effort to dissect Sonic’s strategic group by identifying the market leader and understanding its strengths and weaknesses. Using this information, a competitive strategy will be formulated that will yield the most effective entrance into the market. Market segments into which Sonic will reach in an effort to grow its customer base will be the next evaluation. The team will recommend the best strategy for Sonic’s pursuit of market share, which will help the company determine whether to invest in full-market coverage, a specialization, or a concentration in a single segment. Sonic’s positioning within that segment will be chosen once a decision has been reached about market segment, and a statement for clearly defining that position will be formulated.
The team will draft a positioning statement for the Sonic 1000 and will recommend suggestions for highlighting several of the brand elements that make the Sonic 1000 uniquely applicable in the target market. The team will provide services that customers will expect and need in the use of their devices, as well as an overview of several competitive devices and their pricing. Several promotional objectives will be established to make Sonic as effective as possible in advertising and gathering market attention. To avoid a nearsighted approach, the team will recommend a broad-view game plan for marketing the Sonic 1000.
The following report will provide for the reader a comprehensive understanding of the challenges that face the Sonic Corporation in the release of its new product and will set out recommendations that have been thoroughly researched and documented that will assist the corporation in achieving its goal of acquiring a market share. Section 1: Mission Statement
Author Dan Handle describes a mission statement as “a written, easy-to-remember sentence, short list of bullet points, or paragraph illustrating a business’s goals and purpose” (Handle, 2010). Professor Don Hofstrand of Iowa State University described a mission statement as “a guiding light for the business and the individuals who run the business” (Hofstrand, 2009). Professor Hofstrand goes on to break down the mission statement into three separate and distinct divisions, including the vision, the mission and the core values. The vision is a mental picture of the company’s goal; the mission, a general statement of how that vision will be achieved; and the core values are the totality of the principles and morals that will...