Sonic Marketing Strategy

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CHAPTER 7
(3.0 MARKETING STRATEGY)

1. What types of businesses appear to fit Melody’s market definition? How can you research the number of employees and find other data about these types of businesses?

Any big corporate business that requires a device to stay in touch with business colleagues, coordinate their busy schedules, and have constant access to work information at a given moment appear to fit Melody’s market definition. There are many types of businesses that fit this market definition: government contractors; manufacturing companies; transportation companies; banking, finance and insurance companies; and distribution and service companies.

You can research the number of employees by looking at this website: http://money.cnn.com/magazines/fortune/fortune500/performers/companies/by_employees/index.html. This website lists the top 500 fortune companies by employee. Other data about these companies can also be found at this website. These top companies are examples of businesses that fit Melody’s market definition.

2. What type of purchase would a Sonic PDA represent for these businesses? Who would participate in and influence this type of purchase?

The purchase of a Sonic PDA would represent a modified re-buy for these businesses. Most likely, these businesses already have some form of communication device that they use and are looking for an improved product.

The people who would influence this type of purchase are the users of the product and the technical personnel (IT department) who would define the specifications required of the new product. The purchasing department, the people who authorize the purchase and the gatekeepers are the people who participate in this type of purchase.

3. Would demand for PDAs among corporate buyers tend to be inelastic? What are the implications for Sonic’s marketing plan?

The demand for PDAs among corporate buyers could be considered inelastic to the extent that the corporations will still need to communicate and stay connected and organized when away from the office. When it comes to the purchase of the PDAs certain factors such as price, value, and product features may be more deeply considered. Sonic will focus on communicating these factors in its marketing plan.

CHAPTER 8
(2.0 SITUATION ANALYSIS)
1. Which variables should Sonic use to segment its consumer and business markets?

The major variables for segmenting consumer markets are – geographic, demographic, psychographic, and behavioral segmentation. Sonic should use all four of these variables to segment its consumer market while focusing on geographic and demographic segmentation. By focusing on these two variables Sonic will be able to target individuals that are more likely to buy PDA’s. Sonic can use some of these same variables aforementioned to segment its business markets but also use – operating variables, purchasing approaches, situational factors, and personal characteristics. In doing so, Sonic will be able to identify business markets that have a need to purchase large quantities of PDA’s for their employees.

2. How can Sonic evaluate the attractiveness of each identified segment? Should Sonic market to one consumer segment and one business segment or target more than one in each market? Why?

Sonic can evaluate the attractiveness by using predetermined criteria such market growth, competitive intensity, and market access. In order to be useful to Sonic, each segment should also be measurable, substantial, accessible, differentiable, and actionable. The size of the PDA market is shrinking dramatically but the smartphone market is expected to grow by as much as 50% over the next year (http://www.consumersearch.com/pda-reviews). Given this information, Sonic should target more than one segment in each of the consumer and business markets since they are expanding.

3. Should Sonic pursue full market coverage, market specialization, product...
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