Marketing Strategy and Development

Marketing Strategy and Development

Marketing strategy primarily deals with three forces, otherwise known as the Three C’s; the customer, the competition and the corporation. The process focuses on ways of which the corporation can differentiate itself effectively from its competitors, capitalizing on its strengths to deliver better product value to its customers (Juin, 2000). 

Product development is much more focused on the application of the technology in order to produce a specific product. To aid in the formulation of a new product application from emerging technologies, prototype construction in NDP projects allows this opportunity analysis, assessment of market attractiveness, market research and financial analysis to be taken place (Robert and Veryzer). This is known as a ‘formative prototype’ and is often built using a combination of existing systems and components to provide a platform for early applications of new and unproved technology.

Following this, in order to distinguish a price range for the product, it is vital that the identification of the product type is highlighted: 

Figure. 1

Example in the industry

BSkyB clearly identified there 'is a total market size for Sky Television of 25.4 million homes (Sky Merrill Lynch Presentation June 2007), 14 million of which have not taken up a Pay TV provider’ therefore allowing a significant growth opportunity of BSkyB’s core offer of digital television services.

BSkyB used an adaption of Baker (2007) Technology Adoption Curve launching the product to allow feedback from the early adopters prior to driving the product with a high profile marketing campaign (Ames 1970).

Fig. 2

Following this it was decided that it would accelerate the ‘roll-out’ of Sky+ by a new pricing model (£199, developing on from the high price of £300) advertising campaign focusing on control, simplicity and convenience (Sky Press Release, 2003). This allowed the product to be more affordable attracting a wider consumer market.

Personal Product Example 

It is estimated that the UK sportswear market grew in value by 5.4% in 2012, with sports clothing accounting for approximately 71% of total market value and sports footwear making up the remaining 29% (Report 2013). 

Figure 3 presents a personally analysed picture of the FootJoy ReelFit shoes that the product will be adapted from, highlighting points that will be marketed to the consumers and that will be developed in the prototype of the running shoe.

Fig. 3

It will be primarily released into the general sport market emphasising the element of the 'no laces' appeal that will specifically target gym-goers due to the 'less hassle' approach of no laces whilst being marketed to the Golfers who already positively use a similar product. This shoe will also be aimed at women, reflecting in bright colour schemes that will be made available (shown in figure 3, a personally drawn shoe that reflecting the prototype).

Fig. 3

The financial costs of shoes within the market range from £63.89 - £150 (Nike, 2013) with it only costing them $20 to make the shoe (Fig. 4.)

Fig. 4

The product will cost approximately £59.99 competing with Nike but still allowing a profit to be made. If sales are low the financial element will be re-evaluated accordingly based upon the 'Innovative' immediate consumers.


+Paul Blakey


References

Juin, S. С. (2000). ‘Marketing planning & strategy’. School of Business and Administration.

Veryzer, R. W., Robert,  (1998). ‘Discontinuous innovation and the new product development process.’ Journal of product innovation management, 15(4), 304-321.

Philip, C (2007). ‘Innovation and new product development: Sky+, a mini case study.’ The Marketing Review 7(4), 313-323.

Ames, B. (1970), ‘Trappings vs substance in industrial marketing’. Harvard Business Review: July-August, pp. 93-102.

Baker, M,. Hart, S., (2007), 'Product Strategy and Management'.  Harlow: Pearson Education Limited.

(2013) 'Sports Clothing & Footwear Market Report 2013'. Key Note Publications Ltd.

Nike Shoe Costs (2013). Available at: http://www-personal.umich.edu/~lormand/poli/nike/nike101-8.htm. [Cited on: 5/12/13]

Nike Bare Foot-like Running Shoes (2013). Available at: http://store.nike.com/gb/en_gb/pw/womens-barefoot-running-shoes/7ptZbhyZbrkZ8yzZ1jq?sortOrder=finalPrice|asc. [Cited on: 4/12/2013]