Business Strategies in Introducing New Products in the Market
The pricing strategy to be taken into account for this particular product would be based on the principles of the limit price approach. This approach intends to monopolize the prices of the product therefore protecting the company’s status in the market in relation to the emergence of competitors. The holo-generator is noted to be the first of its kind in the market; no other music gadgets and/or other technologies are like it in the market. Offering such a new product then gives the company an edge and command to the pricing of the product. To avoid immediate entrant of competitors in the field, it is first important to set a limit to the pricing. To do this, the limit price would be lower than expected.
Gadgets offering music features today come at an average level which means that they are relatively affordable for students who may or may not have their own jobs yet. The holo-genrator, although it provides new features, shall be priced just a bit higher than the existing music-feature defined gadgets in the market. This will make it easier for clients buying music-gadgets to rethink their choices and give holo-generator a chance to fit their needs. Later on though, as the sales increase, added features into the gadget shall be imposed; with such additional features, the price limit could be lifted following the concept of the market-oriented pricing strategy.
Through the utilization of the market-oriented pricing, the organization developing, manufacturing and offering the holo-generator would have the capacity to determine the distinct impact of the product on the market it targets. Given a particular span of time [perhaps a quarter], an evaluation towards market acceptance shall be pursued. This will allow the administrators to understand the position of the product in the market and how well it is being accepted by the target buyers. With such evaluations completed, it could be understood how and what particular features are to be added into the gadget hence allowing the company to increase rates that define the product’s overall pricing.
Since the product targets the young generation [ranging from ages 18 to 28], it is safe to say that advertising through the internet would be an essential process to take into account. While there could be the utilization of television ads, it is seen that internet-based marketing would best fit this particular product’s promotion in the market. With many individuals belonging to the younger generation accessing the internet regularly, it would be best to reach them through networks and sites that they usually visit over the net. This could be done through establishing a website for the organization.
The website ought to provide an interactive presentation on the most compelling information about the product. It should cater to the possible questions that the clients may have about the gadget and how well it might be able to respond to their demands as buyers and users of the product. Given that the gadget operates alongside music videos, the presentation of the website should be directed to such concept. Perhaps featuring the most popular music videos, the website should instigate a sense o f comparison on how the regular music-gadgets and how the holo-generator actually changes all these experiences and bring the users into a higher level of understanding the concept behind modern music as it is being tied up with modern technology.
Connecting the website’s ad to social networks through cloud computing would help well in getting the attention of the public, especially that of the ones whom the company targets [for whom they are to offer the products to]. Relatively, the ad posted in social networks ought to be short and interesting enough to capture the attention of social network users. Sending updates and alerts through these portals would also create a viral connection that could serve as the most effective foundation on what the product is about and how it could change the history of listening to music and enjoying the entertainment it offers.
Potential Sales Objections
One thing about music-gadgets offered in the market today is that most of them are easy-to-carry. The users targeted by the creators of these products are usually on the go and are constant listeners to music. Listening while walking, running, and anything else they may be doing is a common culture among the said members of the market. This may not be an option for the holo-generator. Considering that there is a 3D video shown along with the music, the holo-generator is expected to be used in a static position and watched at while it plays the music and the video simultaneously. It is dedicated for those who might want to enjoy music with the embedded video along with it. This fact narrows down the market to whom the product could be offered to.
Another objection might include the desire of the target market to purchase portable gadgets that are capable of providing them the experience of bringing their ‘music’ everywhere they are. Holo-generator, basing from its description might hinder one from experiencing such freedom of appreciating music as it is. Hence, those who would prefer to buy the product would be those who are frequent video viewers. This is why it is important for the product to offer something else apart from its capacity to generate holographic images that could define its real worth as a modern innovation in the bridging of technology and music evolution.
One more objection is that not all music choices have an accompanying music video. It could be realized that in relation to the music industry, not every single released in the market is accompanied by a music video. A larger number of music choices come as audio singles only; this would again narrow down the choices of music presentations that could be showcased in the gadget, thus lessening its appeal in the market.
Advertisement for the Product
Since there are specific objections from the market that could pose a crucial point of development for the holo-generator, it Is important that the advertisement be able to go against such controversies and/or negative matters regarding the product. One way of doing so is through getting an alliance of operation with legitimate music producers and asking for their support to promote the product through giving limited free access to their products specifically sold through platforms like iTunes. This will enable the product to attract buyers see through the possibility of getting free and later on discounted options of downloading the videos and music they want to watch and listen to.
The holo-generator, although it is new and promising, still have many issues to contend with. In this regard, the ad that shall carry its name should be able to point out that what the holo-generator provides at present is just the beginning of the new-age revolution in the field of music development. This shall entail the buyers into a realization that the holo-generator is one gadget they ought to own if they want to remain at the top of the heap; experiencing the best choices that the music industry could give.
Philip Kotler & Gary Armstrong, Principles of Marketing 13E, 2010, Pearson Prentice Hall.
Kent B. Monroe, The Pricing Strategy Audit, 2003, Cambridge Strategy Publications, p.41
Gregson, Andrew. Pricing Strategies for Small Business 2008. Self Counsel Press
Nagle, Thomas and Holden, Reed. The Strategy and Tactics of Pricing. Prentice Hall, 2002. Pages 84-104.