Strategic Marketing Management
Assignment 1: Case Report
George Smith 12102135
In today’s world, it is almost a necessity to have access to some form of marketing management in order for a company to be successful. “Marketing is defined as an exchange between a firm and its customers…the customer wants something from the firm, and the firm wants something from the customer.” In this case, the company ASUS is trying to sell its new PadFone Infinity to the customers they have chosen to target. They are a company looking for brand exposure, innovative recognition and, in turn, profitability by exchanging value to their customers through the products that they have to offer. The PadFone Infinity is the third and newest in ASUS’ range of PadFones, the world’s first phones that can fully power a tablet module from their own operating systems. It has both physical and technological features that have been modified in order to potentially upgrade their product in their target markets eyes. This report will further elaborate the features and benefits associated with this product and how they have used them to their advantage in order to launch their new product into the local business market of New Zealand. Through the use of the marketing framework, ASUS have, in a way, successfully implemented the use of segmenting, targeting and positioning alongside the knowledge of consumers situational decision making attitudes in order to put their product into circulation. This report will outline the efforts ASUS have used in regards to the marketing framework and provide observations on how they may further sales with future products to come. Discussion:
Before a company, such as ASUS, engages in how they are to market a product, they need to gather knowledge on things such as the features and benefits their product has the potential to provide. A situational analysis is the base knowledge needed to be gained before even thinking of segmenting the market. In ASUS’ case, they need to know exactly what their new product is in relation to other products in the market. One way of figuring out where their PadFone fits in the market is through the use of “Maslow’s Hierarchy of Needs”.
Maslow’s hierarchy of needs is “a theory of human motivation which describes consumers as addressing a finite set of prioritized needs.” It is a way of determining how consumers seek value by satisfying the most basic needs. As these are satisfied, they move up towards the top of the pyramid, for example, in ASUS’ case: A consumer will satisfy the needs of necessity such as sleep and food etc. before thinking about needs such as safety and friendship. ASUS has decided to situate their new product at the top of the pyramid, being a “specialty purchase” or “high involvement product”. They want consumers to believe that their product will make them better fulfilling their desire to be the person they want to be or “desired self” through a high hedonic value product, it provides them with more enjoyment than stress of getting some sort of task done. Segmentation:
A market segment is a group of customers who share similar inclinations towards a brand. Marketers need to choose one or more segments to target their product towards before implementing the product they are producing to the marketplace. A market segment is classed as a group of consumers who share common needs, and so one company may be further inclined towards one specific segment in comparison to another. For a company such as ASUS, they need to use the segmentation process to determine what segment best fits their PadFone infinity and then chose an appropriate target market out of these segments to position the product towards. Four basic sets of information may be used in order to class differing segments: Demographics, geography, psychology and behaviour. ASUS will have used this information structure in order to highlight the...
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