Indegious_Tourism

Introduction There was a human recorder system, which gathering health-related information and then transmitting the health-related information to mobile phone or computer, has developed by a mobile phone enterprise. The system can aid elderly people or patients to transmit their health information to the hospital or clinic. The technology is recognized by a lot of old people. Here, this essay will identify two benefits or unique features of the product and the competitors, and describe the consumer requirements for the product and potential market barriers, and analyze distribution and logistics strategy and the components of price. And those parts will include about some of the marketing principles, while whether stating the new product has a great prospect for the company. Indentify two benefits of the new product As a new product, it must satisfy customers’ purchasing need and be perceived by some consumers as new. ← Benefit one The product can transmit the critical health information on daily of user who is patient from remote locations to a clinic or hospital in order to monitoring and evaluate patients' physical condition. Furthermore, the product belong a new technologic product, which means that it has fixable selling field or consumer group. For High Tech Age, the new generation of technologic product is more concerned by many groups; especially the technology will be used for medical field, which makes it have advantageous superiority than many technologic products. If the firm enable to reasonable use of the technology, it will aid a lot of people who need help, while contributing the enterprise to make more profit. ← Benefit two The new product is recognized by increasing elderly people, which means that it has a part of fixable buying group, and it is benefit for launching. For example, the Ferrari is luxury goods, yet it is still purchased by many people who are fixable group. This is closely related with marketing segmentation. In target marketing, there are three main steps which are market segmentation, market targeting, and market positioning. The market segmentation is that satisfy customers’ requirement which divide marketing mixes or goods through separating a market into distinct groups of buyers with different needs or characteristics or behaviour, and identifying bases for segmenting the market, and developing profiles of resulting segments. The market targeting is that selecting one or more of the market segment to enter after assessing or analyzing each market segment’s attractiveness. The market positioning is that locating the competitive positing for the product and developing an appropriate marketing mix for each target segment. (Kotler et al. 2009) The product market segmentation should be locked in the medical field, and providing the system for the hospital, it benefit for aiding the hospital to know the patient's condition immediately. Then hospitals, clinics and older people, and patients will become to customers group of the product. Indentifying the competitor The new technology has a great influence in the medical field, and it can monitor many patients with the disease immediately for the hospital, so that the system has a potential market. However, it still has a corrival that is portable electronic systems which is electrocardiograph, X-ray spectrometer and so on. Comparing with the new technology, the portable electrocardiograph and X-ray spectrometer are been familiar with many people and are used by a lot of medical establishment. Therefore, if the company would like to listing the technologic system, the enterprise had to do adequate market research and market testing before the goods will be launched, which to ensure it can be appropriate and correct used. To sum up, the product has many competitive advantages, the company can sales some part of products to hospital and clinic, and while creating themselves brand sales to buyers in many medicine market. This way may be conducive to share market for the company. Describe the consumer requirements for the product We will analyze about the costumer decision process for the new products before describing the buyer need for the goods. In the marketing principle, there are five stages in the adoption process. The first stage is awareness which the customer is aware the new product, yet he or she is short of information about the new product. The second is interest which means that the consumer research the information about the new product and interest about it. The third is evaluation which is the customer consider about whether trying to assess or understand the new product. The fourth is trial which the customer tries to use the new product and assess whether the product is suitable to use. The last stage is adoption which means that the consumer decides to use the new product in regular. And generally, the customer should make a sense whether he or she purchase the product in the stage. (Kotler et al. 2009) Therefore, the new technical product would like to satisfy the consumer’s need and its function also had to satisfy the customer’s requirement for the kind of goods. First of all, the company should promote the product for its advantages, such as advertisement, and publicity and so on. This can let be more and more people to recognize about the system, and let them to be aware whether the new product is suitable for them or satisfy their purchasing requirement. And next, some customer will interest and evaluate about the product after they acquaint themselves with the product. Then, they will research information about it, and consider about whether the product is suitable them, or whether they need the product with its function. And then, the some of consumers will try to use the product. At the same time, they will consider about whether the new product is portable and whether the system sends accurately their situation of kidney, heart or lung function reading to private doctor’s the mobile phone and computer of the hospital or the clinic. And finally, the customer will decide whether the product purchase after they trial and satisfy the new system. (Focusing on Buyers' Needs. 2011) To sum up, the consumer require for the product, because the product satisfy the several points which are portable, effective, accurate, and practical. Describe potential market barriers For the new product, analyzing the potential market barriers is crucial. So we will describe about the life-cycle of the product before analyzing the potential market barriers. The product life cycle has five stages which are product development, introduction, growth, maturity, and decline. ← The product development – during the period of the product development, the company will invest money to develop the new product, so the investment costs add up, and sales are zero. ← Introduction – in the period of introduction, sales will be slow growth, because the new product begins into the market. Due to the product has heavy expenses, profit are non-existent at this stage. ← Growth – the product is accepted by the market, so that profit and sales are rapid increase during the period of growth. ← Maturity – in the stage, due to the product has carried out acceptance by a lot of potential consumers, sales growth of the product will be slowdown. And the marketing expense rise to defend the product against competition, so that profit will be decline. ← Decline – during the period of decline, sales and profit will drop. In other words, the product may not satisfy the customer’s requirement or adapt the competition of the market. (Kotler et al. 2009) We can know from above description, the development process of the new product. Aiming at the technical product, it has many barriers in the market. When the company develops the product, it will face lot of the obstruction, such as funds, artisan and so on. And then, when the product introduced into the market, the company still invests many capitals to promote the product in order to the customer is aware with the system. Therefore, funds are still a barrier, if the company has not enough capital during into the market. During the period of the rapid growth of sales and profits, there is a barrier which there is not enough products offer to buyers. When the market goes into saturated phase, the product arrives the maturity which the growth of the market share is that expense someone else's business, rather than the increase of the market itself. During the period, sales and profit will reach peak, and the company will achieve the market share and make more money. However, a lot of the kind of products appear will share the market of the new product. Therefore, sales and profits of the product will be slow down. And the enterprise had to reduce the price in order to defend the product is not replaced. If the company would like to make profit through the product, they had to change the strategy of the sale or readjust the price. When sales and profit drop which means that the product trend decline period. In the same time, if the company has not to renew the system or research new system to replace it, then the product will lose market share. (Product life cycle management. 2002) In conclusion, if the firm would like to remove these obstacles, they must make different strategy to implement market share in each phase of the life cycle. Analysis distribution and logistics strategy The correct distribution planning has several steps which creating distribution objectives, evaluating internal and external environmental influences, choosing and developing a distribution strategy. (Kotler et al. 2010) In general, the distribution objective is affected by the nature of its product, and company's polities. For example, the company will purchase the product to hospital; they should find pharmaceutical representative to agent the product for sales. Furthermore, the internal environment includes the strategy and finance of the firm and the external environment involves market competitors and government’ polity. Choosing and developing the distribution strategy can be achieved through choose many franchisers and agency. (An overview of mobile phone distribution channels in china. 2003) Identifying the components of price Historically, the price is usually caused by buyers and sellers bargaining with each other. In fact, an enterprise set the price strategy to accord with its life cycle. Furthermore, we may be in accordance with tow models, which are marketing-skimming pricing, and market-penetration pricing, to set price. ← Market skimming pricing – a firm set a high price for a new product in order to get maximum income. ← Market penetration pricing – a venture set a low price for a new product in order to draw a number of consumers and share market. (Kotler. 2009) Marketing skimming pricing is the one of general strategy, however a new product is set high price and into the market with heavy promotional spending. In general, a new product is promoted to emphasize its unique and practical characteristics, and higher quality. Comparing with market skimming pricing, market penetration pricing use aggressive strategy to quickly share market in order to make profit. Moreover, it also useful when there is substantial threat of competitor entry the market, this way can aid them to gain market share quickly. Therefore, I suggest the company may set a high price for the new technical product, because the product belong new technical product. It is not like articles for daily use, such as clothes, shoes, rice, and vegetable, and so on. Those goods can set a low price because they has many competitor, and the few of market share, then they set low price in order to attract customers and share market. By contrast, the new product has more value for buyer. For example in Apple’s products, those products charged the highest price, and gave the benefit of themselves new product over other competitive products, so their technical and brand draw consumers to buy them, rather than purchasing other similar and low-price products. To sum up, I suggest that the company may set a high pricing in order to attract its potential customers, and started their own brand, this way contribute to extend the life cycle of the product in order to make profit and share market. Conclusion The essay introduces about a new product how to go into the market in order to share market. Moreover, it includes that identify two benefits or unique features of the product and the competitors, and describe the consumer requirements for the product and potential market barriers, and analyze distribution and logistics strategy and the components of price. Reference “An overview of mobile phone distribution channels in china”. 2003. Source from: http://www.chinabusinesssolutions.com/dbimg/overview_of_handset_distribution_channels_in_china.pdf “Focusing on Buyers' Needs”. 2011. Source from: http://eere.pnnl.gov/femp/publications/EmergingTechnol_20Program.pdf Kotler, P., Adam, S., Denize, S., & Armstrong, G. (2009). Principles of Marketing. Australia: Pearson Education Australia. (Accessed December 13, 2011) Kotler, P., Brown, L., Burton, S., Deans, K.R. & Armstrong, G. (2010). Marketing (8th ed). Australia, Pearson. “Product life cycle management”. 2002. Source from: http://www.urenio.org/tools/en/Product_Life_Cycle_Management.pdf (Accessed December 13, 2011)